§ 27. Mr. Spriggsasked the Minister of Labour whether he is satisfied the price index is based upon the basic needs of the people; and if he will make a statement.
§ Mr. HattersleyI am satisfied that the Index of Retail Prices measures changes in the average level of prices of practically all the goods and services purchased by households of wage earners and small and medium salary earners. In order to achieve this, the weighting pattern is derived from the actual expenditures recorded by households co-operating in the continuing Family Expenditure Survey.
§ Mr. SpriggsIs my hon. Friend aware that many wage-earners in St. Helens are having to meet a 21 per cent. increase in rents plus an increase in rates? What is the Minister going to do about future wage claims made by these people to help meet these increases? Is he aware that this steep increase in rents represents a cut in the real value of wages?
§ Mr. HattersleyI hope to deal with the relationship of rents and the cost of living in a later Answer. In terms of wage movements, they must conform to the Government's prices and incomes policy, which includes a paragraph directed to local authorities urging them to keep rent increases to the minimum, if rents must be increased at all.