HC Deb 18 April 1972 vol 835 cc220-1
Q1. Mr. Redmond

asked the Prime Minister if, at his next meeting with officials of the Trades Union Congress, he will discuss the measures the Government have taken to assist those with lowest incomes.

The Prime Minister (Mr. Edward Heath)

I should be happy to discuss the Government's record in this field with the TUC.

Mr. Redmond

Has my right hon. Friend's attention been drawn to the report issued before the Budget by the Institute of Fiscal Studies showing that the people with the lowest incomes in this country have improved their position by 28 per cent. as a result of measures taken by this Government? Would it not be useful to get that purely non-party body to revise its report in the light of the Budget and would not the information thus produced be invaluable in the present rail dispute?

The Prime Minister

Perhaps it may be possible for the Institute to carry these matters further. The study which it has made and the figures given provide confirmation of the effectiveness of our policies. I agree generally with the conclusions. It must also be recognised that some of the detailed calculations of any study of this kind have to be based on certain assumptions, which the author has made.

Mr. Thorpe

Whether or not the country shares the Prime Minister's satisfaction about this, is he aware that my colleagues and I have been conducting a survey of low-income groups throughout the country and have found some horrifying cases of people who are on incredibly low rates of pay—out-workers, catering staff, agricultural workers, I could go through them? Would he and the Government give attention to the possibility of guaranteed minimum earnings of at least£20 a week?

The Prime Minister

If the right hon. Gentleman would like to give us the information which he and his colleagues have gathered, we could have that examined, too. It is apparent that in general, and in manufacturing industry in particular, there is now a movement towards a basic guaranteed wage of£20 a week.

Mr. Ashton

Is the Prime Minister aware that it would cost only£26 million to restore the price of school milk to its 1970 level? Could he say why this could not have been done in a Budget in which£1,200 million was given away to the better-off?

The Prime Minister

It is difficult to think of a more misleading remark than that contained in the last supplementary question. The Budget allowed£1,200 million to remain in the pockets of those in this country paying taxation—in exactly the same way right through the income brackets. This has been generally welcomed throughout the country as being a measure helpful to all those paying tax. In addition, more than two million people were taken out of paying tax altogether.

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