HC Deb 23 April 1931 vol 251 cc1125-6
7. Mr. ARTHUR MICHAEL SAMUEL

asked the Minister of Labour why the Ministry bases its cost-of-living index on part, and not the whole, of a household budget; why the selected household's weekly income should be assumed as 36s. 10d., and why the assumed year should be 1904; and will she now discard these factors and in future compile the index number upon prices and the standard of living applicable to 1931 with frequent re-tests of commodity prices and adjustments of weightings, so as to provide a measure of, and show the changes in, the average level of retail prices?

Miss BONDFIELD

The memorandum on the cost-of-living index number, of which I am sending the hon. Member a copy, gives the answer to the first two parts of this question. As regards the last part of the question, I would refer the hon. Member to the reply which I gave on 19th February to the hon. Member for North Newcastle (Sir N. Grattan-Doyle).

Mr. A. M. SAMUEL

Is the Minister aware that the existing system is now 27 years old and that it is calculated on a very narrow basis? Does she not realise that she ought to revise the weighting and bring it out on a correct system, so that we may have up-to-date and accurate cost-of-living indices?

Miss BONDFIELD

I have nothing to add to the reply that I gave in February, that the question is still under consideration.

Mr. A. M. SAMUEL

Will the Minister ask the Institute of Actuaries and the Life Assurance offices to advise and assist her?

Miss BONDFIELD

The matter is in the hands of a special committee for report.

Mr. ERNEST BROWN

Is the Minister not aware that this was never meant to apply to millions of people's wages, and that it really is causing a great deal of public uneasiness because in some cases, as between man and man, it works out so very unfairly?

Miss BONDFIELD

A sliding scale method of fixing wages was adopted after the cost-of-living index was in operation.