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To ask the Chancellor of the Exchequer what the revenue yield would be of (a) abolishing the family element of child tax credit and (b) withdrawing the family element of child tax credit on family incomes of over £30,000.
The estimated reductions in expenditure as a result of these options, calculated for 2005–06, are:
(a) abolishing the family element of child tax credit: around £3 billion per year.
(b) withdrawing the family element of child tax credit on family incomes over £30,000: around £0.6 billion per year.
These figures were calculated using the department's tax and benefit model (IGOTM) based on data from the Family Resources Survey 2003–04.