I propose to take Questions Nos. 39 and 43 together. Significant progress has been made in recent budgets to improve the position of families through increases in the basic rates of payments which include very substantial increases in child dependant payments together with increases in child benefit. The recent budget was no exception in this regard with the main improvements in child related payments being an increase in the minimum child dependant rate to £12 representing an increase of 9 per cent, and streamlining to three rates; the payment of the higher child benefit of £22.90 in respect of the fourth child onwards, which represents an annual increase of over £85 for families of at least four children; and improvements in the family income supplement scheme including an increase in the income limits and the removal of the limitation on the level of payment. This latter improvement will be of significant help to very low earners.
In addition, child dependant allowances will be extended to age 21 in respect of the child dependants of long term recipients where the child remains in full time education. To ease the financial burden when a child dies the child dependant allowance will continue to be paid for six weeks after death.
A further important element in the Government's support for families with children is the child related tax exemption. This scheme will, from 6 April, provide for a child tax exemption of £300 for the first and second child in a family, and £500 for third and subsequent children.
The Government intend to build on the progress to date and, under the Programme for Economic and Social Progress, will provide the level of resources necessary to implement the additional child income support measures recommended by the Commission on Social Welfare — some £69 million in 1990 terms — over the ten year period of the programme. The particular measures taken will be worked out in the light of up to date information on child and family circumstances and in the light of available resources. In this context the structure of all child related payments, including child benefit, will be examined and this will include a detailed review of the various reports on family income support.
The programme also gives a commitment to review and substantially improve the structure of the family income supplement scheme. Changes will be designed so as to improve the level of payments to all beneficiaries, particularly those on the lowest income levels. As part of the restructuring, the role of the family income supplement and the link with the child benefit scheme will be examined, taking account of the type of issues raised by Deputy Pattison.