§ Mr. Maurice Macmillan
asked the Secretary of State for Social Services what is the gross cost of family allowances and the net cost of family allowances after the tax clawback in each of the fiscal years 1975–76, 1976–77 and 1977–78.
§ Mr. O'Malley
The estimated gross cost of family allowances in 1975–76 and 1976–77 is £533 million and £525 million, respectively. The cost net of income tax, including clawback, is estimated to be about £270 million in 1975–76 and would be of a similar order in 1976–77 on present income tax rates. As regards later years, the Government have announced that family allowances will be replaced by the new scheme of child benefit in April 1977.