Mr Major’s Written Parliamentary Answer on Benefits – 23 March 1987

Below is the text of Mr Major’s written Parliamentary Answer on Benefits on 23rd March 1987.

Mr. Frank Field Asked the Secretary of State for Social Services what would be the cost of doubling child benefit (a) if the increase was offset against all other child additions for which claimants drawing social security benefits were entitled, (b) if it was offset, additionally, where the increase was larger than any child addition entitlement, against any supplementary benefit entitlement, (c) if it was further offset against any entitlement to national insurance benefits and (d) if the increase was taxed (i) at the rate for higher rate taxpayers at their marginal rate of tax and (ii) at the standard rate where this was applicable.

Mr. Major Based on benefit rates coming into effect in April 1987, the approximate cost, in Great Britain, would be as follows:

£ million

(a) 3,850
(b) 3,600
(c) 3,500
(d) (i) 3,350
(d) (ii) 2,400

These figures assume the accumulative effect of the offset measures specified. In addition there would be very substantial administrative costs.