Mr Joe Benton (Bootle, Labour)

I remind the Committee that with this we are discussing the following:

Amendment No. 7, in

clause 2, page 2, line 10, leave out subsection (5).

Amendment No. 163, in

clause 2, page 2, line 18, at end insert—

'(5A) A child is also an ''eligible child'' if he is—

(i) a child for whom a parent gains entitlement to child benefit in respect of the child at any time before the child's eighteenth birthday; or

(ii) a child whose parents were not previously entitled to claim child benefit, who is subsequently taken into the care of a local authority.'.

Ms Ruth Kelly (Financial Secretary, HM Treasury; Bolton West, Labour)

May I start by saying what a pleasure it is to welcome you to the Chair, Mr. Amess? I look forward very much to working with you as you steer our proceedings during the next few weeks.

It falls to me now to deal with amendments Nos. 7 and 163. The hon. Member for Angus (Mr. Weir) asked whether children whose parents have successfully claimed asylum in the United Kingdom will be eligible to the child trust fund. I assure him that such children will be eligible, and I wish to clarify the position of people seeking asylum. While an application for asylum is being considered, there is no entitlement to claim benefit, including child benefit. Children of parents in that position will not be eligible for the child trust fund.

However, when permission to remain definitely in the United Kingdom has been granted, people are entitled to claim benefits in the same way as British citizens. Parents who previously claimed asylum will be entitled to claim child benefit for their children, and those children will become eligible for the child trust fund, subject to other conditions being met such as the child being of the appropriate age. I trust that the hon. Gentleman is satisfied on that point. On the basis of my comments, I ask him and the hon. Member for Tatton (Mr. Osborne) not to press their amendments.

Mr Michael Weir (Angus, Scottish National Party)

The Minister did not deal with the second part of my question, which was about children who may be taken into care under the asylum legislation that is currently going through the House. Does she have any comments to make on that?

Ms Ruth Kelly (Financial Secretary, HM Treasury; Bolton West, Labour)

Yes. When children have been granted indefinite leave, they are entitled to other benefits according to the same criteria as other families. As soon as they are settled permanently in the United Kingdom, they will be entitled to the child trust fund. If an unaccompanied child had not been granted that status and was refused asylum, the child would be removed only if appropriate reception and care arrangements existed in the country to which he or she was to be removed. However, if the child were granted asylum, he or she would be eligible for the child trust fund as would other children in care.

Mr Michael Weir (Angus, Scottish National Party)

I am sorry to press the Minister on the matter, but I do not understand her argument. She is referring to the position when a child is granted asylum. There could be a situation in which parents who are in danger of being, or who have been, refused asylum, disappear and the child is taken into local authority care. Would that child be permanently resident in the country and entitled to the child trust fund or would the child be in danger of being deported and, thus, not eligible for the fund?

Ms Ruth Kelly (Financial Secretary, HM Treasury; Bolton West, Labour)

An argument about the possibility of deportation threatens to go outside the scope of the hon. Gentleman's amendment. When children are granted asylum, they will become entitled to the child trust fund. If they are refused asylum, their claims will not stand. On that basis, I ask the hon. Gentlemen not to press their amendments.

Mr Michael Weir (Angus, Scottish National Party)

I shall press for a vote on the amendment in my name. I am not satisfied that the Minister has given me a clear answer.

Mr George Osborne (Tatton, Conservative)

I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Amendment proposed: No. 163, in

clause 2, page 2, line 18, at end insert—

'(5A) A child is also an ''eligible child'' if he is—

(i) a child for whom a parent gains entitlement to child benefit in respect of the child at any time before the child's eighteenth birthday; or

(ii) a child whose parents were not previously entitled to claim child benefit, who is subsequently taken into the care of a local authority.'.—[Mr. Weir.]

Question put, That the amendment be made:—

The Committee divided: Ayes 1, Noes 12.