HC Deb 17 June 1963 vol 679 cc12-3
13. Mr. Millan

asked the Minister of Pensions and National Insurance if he will estimate the reduction in the number of weekly allowances paid by the National Assistance Board consequent on the introduction of the new National Insurance scales.

Mrs. Thatcher

Just over 66,000 National Assistance supplements to National Insurance benefits have ceased in consequence of the increases made this year in the rates of those benefits.

Mr. Millan

Is this figure not a demonstration of the fact that because National Assistance scales have been increased to a much less extent than National Insurance scales in the last increase the people who are by definition among the very poorest, namely, those on National Assistance, are getting the smallest increases, and is this not thoroughly undesirable?

Mrs. Thatcher

Hon. Members opposite complain when we have too many people on National Assistance. They now complain because we increased National Insurance benefit rates to take some people off National Assistance. That figure is inflated by the ending of discretionary winter fuel payments in April.

14. Mr. J. Hill

asked the Minister of Pensions and National Insurance if he will estimate the weekly reduction in expenditure by the National Assistance Board following the introduction of the new National Insurance benefit scales.

Mrs. Thatcher

£200,000. But the joint effect of the recent National Insurance and National Assistance changes has been to increase the total income of recipients of national assistance by about £670,000 a week.

Mr. Hill

Will not the hon. Lady agree that because of these figures it is time that the Government thought again? As my hon. Friend the Member for Glasgow, Craigton (Mr. Millan) has already said, people with the lowest possible incomes are suffering because of the National Assistance level not being increased v/hen the pensions were increased.

Mrs. Thatcher

I showed in my original answer that people on the lowest possible incomes are now getting some £670,000 a week more than they were previously.