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Child Benefit

Volume 461: debated on Monday 11 June 2007

To ask the Chancellor of the Exchequer what estimate he has made of the cost to the Exchequer of raising child benefit for oldest children by (a) £2, (b) £4, (c) £6, (d) £8, (e) £10, (f) £12 and (g) £14. (137544)

The estimated annual cost of raising the rate of child benefit for the only or oldest qualifying child is shown in the following table:

Estimated cost of increasing the rate of child benefit for eldest children

Increase in weekly rate for eldest child (£)

Annual cost (£ billion)

2

0.8

4

1.5

6

2.3

8

3.1

10

3.8

12

4.6

14

5.4

To ask the Chancellor of the Exchequer if he will estimate how many children would be taken out of poverty assessed as 60 per cent. of median income if child benefit for oldest children was increased by (a) £2, (b) £4, (c) £6, (d) £8, (e) £10, (f) £12 and (g) £14. (137545)

Estimated impacts on child poverty in 2007-08 of raising the rate of child benefit for eldest children is shown in the following table .

Estimated impact on child poverty of increasing rate of child benefit for eldest children

Increase in weekly rate for eldest child (£)

Estimated reduction in child poverty in 2007-08 (thousand, OECD scale)

2

50

4

150

6

150

8

250

10

300

12

350

14

400

Poverty is assessed as less than 60 per cent of median household income with reference to the modified OECD equivalisation scale; figures are rounded to the nearest 50,000.

To ask the Chancellor of the Exchequer if he will estimate the value of child benefit and tax credit payments made in relation to children from birth to 19 years old as an average for those eligible for such tax credits. (139540)

[holding answer 4 June 2007]: The amount of financial support that a family will receive between the birth of a child and them leaving education will depend on families’ circumstances and income in each year.

For 2007-08, the maximum amount of financial support from the Child Tax Credit and Child Benefit is £3,330 a year for the first child and £2,475 a year for second and subsequent children, assuming there is no eligibility for disabled child elements or the under-ones family element.