HC Deb 24 November 1970 vol 807 cc216-7
12. Mr. Cronin

asked the Chancellor of the Exchequer what further measures he proposes to improve the standard of living of lower-paid workers and their families.

Mr. Patrick Jenkin

The Government's economic policies are designed to improve the rate of growth of the economy and thus the standard of living of all workers.

Mr. Cronin

Without considering now the somewhat speculative future prospects of the Government's economic policy, will the hon. Gentleman at least have regard to the plight of fatherless families, of whom there are over 50,000, who, with even the maximum benefit, will still be living well below the poverty line?

Mr. Jenkin

One of the main objectives of the F.I.S. scheme introduced by my right hon. Friend the Secretary of State for Social Services is to help fatherless families and all single-parent families.

Mr. James Hamilton

The Bill now going through the House provides that a father, mother and child are entitled to only £15 a week. Does not the hon. Gentleman agree that this is totally inadequate in the present day, and that the only way to take care of the problem is to introduce a national minimum wage of 16 10s.?

Mr. Jenkin

The question of a national minimum wage is for my right hon. Friend the Secretary of State for Employment.

13. Mr. Cronin

asked the Chancellor of the Exchequer if he is aware that as a result of his recently announced fiscal measures a family which has an increase in income from £13 a week to £14 a week will receive only an extra 10s. as a result of the decrease in supplementary benefit; and if he will take action to prevent this and similar situations.

Mr. Patrick Jenkin

As the Secretary of State for Social Services has announced, the family income supplement will be reduced by 10s. for each additional £1 of income. Supplementary benefit is not payable to wage earners in full-time work. The general problem of disincentives is a long-standing one, which will not be easy to solve.

Mr. Cronin

Does not the hon. Gentleman understand that the phased withdrawal of means-tested benefits will cause numerous anomalies which are both unfair and disincentive in their effects, and these will be superimposed on the principal anomaly that the means test prevents many sensitive workers from drawing any benefit?

Mr. Jenkin

I can only repeat my right hon. Friend's hope and assertion that those who are entitled to benefit from the provision which is being made will make application. A nation-wide publicity campaign is to be mounted to ensure maximum take-up.