HC Deb 04 April 1950 vol 473 cc1014-6
The Minister of National Insurance (Dr. Edith Summerskill)

I will, with permission, make a short statement. I am informed by the National Assistance Board that they will be sending me next week draft Regulations proposing increases in their current rates. I hope to be able to submit the necessary Regulations for the approval of the House shortly after the Recess. I understand that under these proposals the weekly rate for single householders will be increased from 24s. to 26s. and that for a married couple from 40s. to 43s. 6d., in both cases exclusive of rent, with corresponding increases in other rates. The additional cost of the proposals, allowing for attraction of new cases over a period, may be expected to approach £10 million in a full year.

Mr. R. S. Hudson

May I ask two questions? First, whether the increase fully covers the increased cost of living and the reduction in the value of money since the rates were first fixed? [HON. MEMBERS: "Oh."] Secondly, may I ask whether the £10 million referred to as the increased cost is included in the Civil Estimates which have just been published?

Dr. Summerskill

As to the first question, the Board took into consideration all the circumstances surrounding the lives of those on the subsistence level. This is the result of a periodical review. As to the second question, the figure is not included in the Estimates.

Mr. Mikardo

Is my right hon. Friend aware that the announcement she has just made represents a great act of social justice and that the £10 million could not have been spent in any other way to give so much benefit where it is most needed? May we take it that additional allowances such as special diets for some invalids will be unaffected by these new scales?

Dr. Summerskill

I shall have to give consideration to the second part of my hon. Friend's supplementary question, but I think the position will remain the same.

Mr. Paton

Is it possible for my right hon. Friend to say at what date the new arrangements are likely to come into operation? Also, is she aware that her personal initiative and the sympathy she has shown in this matter merit the congratulations of every hon. Member in the House?

Dr. Summerskill

I thank my hon. Friend and would say how pleasant it is to bask in approval for the first time. The draft Regulations will be laid immediately after the Recess. Then they will have to be examined by a Select Committee, and I shall submit them to the House early in May. Without committing myself, I hope they will come into operation in the middle of June, but the people who are to have an increase in their rates—there will be 1,200,000—will receive it retrospectively from the appointed day even if they do not apply until after that date.

Mr. Boyd-Carpenter

When the right hon. Lady tables the Regulations, will she be good enough to table with them a calculation showing their purchasing power in terms of the cost of living at the time when the original rates were fixed?

Dr. Summerskill

I cannot commit myself.

Mr. Hubbard

How will this affect people who are drawing payments on the National Assistance scale?

Dr. Summerskill

These are National Assistance scales. This is an increase in the scales.

Mr. Osborne

Is the right hon. Lady aware that the increase from 24s. to 26s., if written back in true purchasing power as given to me by the Chancellor of the Exchequer, means that the new rate is worth only 21s. 6d.? If the Board have taken all considerations into account it means that they will be paying lower rates than before.

Mr. Carmichael

When she presents the Regulations, will my right hon. Friend have any knowledge of other Regulations or parts of other Regulations which will be amended, so that people will get the benefits all round? In many cases we find that if other Regulations are not amended the increases are not applied all round.

Dr. Summerskill

I do not quite follow my hon. Friend. Perhaps he will give me the details of the people about whom he is thinking.

Mr. Carmichael

What I want to know is whether the Regulations will be presented to the House in such a form that there will be no chance of officials saying that an applicant does not come within the Regulations?

Dr. Summerskill

Everybody in need will come within the Regulations.

Mr. Mikardo

In view of the misleading questions which have been asked, suggesting—

Hon. Members

Order!

Mr. Speaker

The hon. Member really should not make provocative statements. It does no good on either side to debate this matter. We want to find the facts; we do not want to make party points.

Mr. Mikardo

May I put it to you, Mr. Speaker, that what I was desiring to do was to make a correction on fact and figures? With your permission, may I ask the Minister whether she is aware that, whereas since the scales were fixed the cost-of-living index has gone up by less than 5 per cent., this increase represents rather more than 8 per cent.?