HC Deb 17 July 1961 vol 644 cc864-5
7. Mr. Jeger

asked the Minister of Pensions and National Insurance what changes he is proposing to make in the payment of family allowances.

Mr. Boyd-Carpenter

None, Sir.

Mr. Jeger

Can the Minister assure us that payment of family allowances has not been the subject of the week-end plotting which has been going on with his right hon. and learned Friend the Chancellor of the Exchequer? Can he guarantee that there will be no cuts in family allowances tomorrow week?

Mr. Boyd-Carpenter

My Answer was not only brief but clear.

8. Mr. Reynolds

asked the Minister of Pensions and National Insurance what would be the cost of increasing family allowances by 50 per cent.

Mr. Boyd-Carpenter

About £67 million a year immediately.

Mr. Reynolds

As this is so close to the amount to be given in Surtax relief next year, will the Minister call the attention of his right hon. and learned Friend the Chancellor of the Exchequer to the fact that if there is to be any major change in social service benefits, the worst impact upon the families with a large number of children could be eased by altering the Surtax relief and transferring the money to this benefit?

Mr. Boyd-Carpenter

There are at least two hypotheses in that supplementary question.

9. Mr. Reynolds

asked the Minister of Pensions and National Insurance the estimated cost of increasing family allowances by 5s. per week for all children, at present in receipt of such allowances, over 13 years of age.

Mr. Boyd-Carpenter

About £3½ million a year.

Mr. Reynolds

In view of the fact that this is such a small amount and of the ever-increasing cost of maintaining children of this age, as was shown by the Chancellor of the Exchequer when he said how awkward it was to maintain a family on £5,000 a year, whereas the majority of families live on much less than that, will the Minister look into the matter and see whether something cannot be done on the lines proposed in the Question?

Mr. Boyd-Carpenter

I do not think that this is a particularly useful suggestion, but I can say that family allowances, which were taken through Parliament by my right hon. Friends in the Caretaker Government and which have been increased by my right hon. Friends in 1952 and 1956, are safe in our hands.

20. Mr. J. Robertson

asked the Minister of Pensions and National Insurance if he will state the value of the current family allowance for the second child in terms of June, 1952, values.

Mr. Boyd-Carpenter

6s. 4d.

Mr. Robertson

In view of the cost of living today, would the Minister not agree that this is a completely unrealistic figure? Will he consider the matter with a view to restoring the previous value of family allowances?

Mr. Boyd-Carpenter

It is quite unrealistic, to use the hon. Member's own phrase, to take family allowances in isolation. The earnings of the great majority of people who are in work have risen very substantially since the date given in the Question, and for those who are not in work National Insurance dependency allowances, particularly for widows, have been very substantially increased too.