European Economic Community (Hansard, 9 November 1971)

§ 1. Mr. Boyd-Carpenter
asked the Secretary of State for Social Services how the level of family allowances currently payable in Great Britain compares with the level of comparable allowances now payable to the present members of the European Economic Community.

§ The Secretary of State for Social Services (Sir Keith Joseph)
Family allowances vary greatly within the Six, but in most cases the rates are higher than in this country. Comparative tables for Great Britain and each country of the Six are in the Library of the House.

§ Mr. Boyd-Carpenter
While there may be no obligation to harmonise our rates of allowances with those of the Six, does not the fact that they are generally higher than in this country constitute an argument for my right hon. Friend giving further consideration to an improvement in the rates of family allowances?

§ Sir K. Joseph
My right hon. Friend will be aware that one cannot judge the relative importance of family allowances in isolation without taking into account the tax treatment and the availability of benefits in kind. Certainly we shall constantly keep in mind methods of improving the real treatment of families with children.

§ Mr. Crawshaw
Does the right hon. Gentleman agree that whereas once we led the world in social services, we have 802 fallen behind in that race? Would not our entry to the Community be a wonderful opportunity to show that we intend to pay at least as much as the other countries do?

§ Sir K. Joseph
I have to combine realism with education in my task. While it is important to point out that some of the countries of the Six treat their elderly in cash terms better than we do, the totality of our treatment of most of our citizens stands comparison with anywhere else in the world.

§ Sir B. Rhys Williams
Has my right hon. Friend considered the overwhelming social and administrative advantages of ending the child tax allowances and the family income supplement scheme and extending family allowances to the first child and paying them at the rate which all these schemes are trying to achieve?

§ Sir K. Joseph
My hon. Friend is tireless in seeking simplicity. The Government sympathise with his objective. But the vast majority of people with children now pay taxation and, therefore, the abolition of children's tax allowances does not seem a pre-eminent idea.