§ 39. Mr. David Owenasked the Minister of Social Security if she is aware that increasing family allowances will be one of the only ways in which the extra cost in food, following a successful entry into the European Economic Community, could be offset; and if in anticipation she will seek to restructure the present system and extend payment to the first child.
§ The Joint Parliamentary Secretary to the Ministry of Social Security (Mr. Charles Loughlin)No, Sir.
§ Dr. OwenWould my hon. Friend not agree that the family allowances system and structure is under great criticism at present, and that, although many of us believe that its unpopularity is unjustified, we should like to see radical changes urgently introduced by this Government?
§ Mr. LoughlinI welcome what my hon. Friend says about the criticism of the unpopularity of family allowances. I, too, feel that it is unjustified, but so far as the Common Market goes, it is far too early to commit ourselves. In any case, the whole question of family allowances is under consideration at present on the whole issue of child poverty.
§ Mr. McNamaraIs my hon. Friend aware that whether or not we go into the Common Market there is a great case now for increasing family allowances, and that if we should go in there would be a case for increasing them still further?
§ Mr. LoughlinAs I said, this matter is now being considered by the Government and I cannot be expected to go further than that today.
§ Mr. ShinwellIs not my hon. Friend aware that if we unfortunately go into the Common Market there will be no hope whatever of our increasing family allowance, unless with the consent of people who know nothing about conditions in this country?
§ Mr. LoughlinI am not so sure that that is an accurate statement of the position.
§ Mr. William HamiltonWould my hon. Friend assure the House that his Department is not waiting for a decision to be made by the Government about whether or not we go into the Common Market before it makes an announcement about increasing family allowances?
§ Mr. LoughlinI think that I can give my hon. Friend that assurance. The position is that we are at the moment considering the whole question of family allowances without any relationship whatever to the position of the Common Market.
§ Mr. HefferIs my hon. Friend aware that if we go into the Common Market and carry out the Treaty of Rome obligations in relation to social security benefits there will be bound to be an upward trend in family allowances in view of the fact that most of the E.E.C. countries have better family allowances than we have?
§ Mr. LoughlinThere may well be an upward trend in family allowances. We are attempting to deal with such a hypothetical situation that it is hardly possible to say what will happen.