§ 19. Mr. Meacherasked the Secretary of State for Social Services what proposals he has concerning means-tested benefits to modify the high rate of marginal levy in terms of benefit forgone for a low-paid worker who increases his wage by hard work.
§ 66. Mr. Peter Archerasked the Secretary of State for Social Services if he will initiate an inquiry into the effects upon lower-income families, in receipt of means-tested benefits, of increases in the earnings of the breadwinner.
§ Sir K. JosephI have nothing to add to my hon. Friend's reply to the hon. Member for Heywood and Royton (Mr. Barnett) on 12th January, 1971.—[Vol. 809, c. 44.]
§ Mr. MeacherWould not the right hon. Gentleman agree that there is a crisis of incentives for low-paid workers in view of the low tax threshold, the higher graduated insurance contributions and the proliferation of means tests? Will he confirm that the imposition of the means tests and the family income supplement on top will make an already unsatisfactory position into a ludicrously absurd one? Since the only answer to this problem is gradually to phase out all 1177 means tests, what plans has he for an alternative adequate system of benefits as of right?
§ Sir K. JosephI will accept that objectively the aggregation of all the selective benefits of this Government on top of those of the last look as if they reduce incentives for the low-paid. What we do not know is how this works subjectively. The Government believe that help can be given most effectively to those who most need it on a selective basis.