HC Deb 10 April 1974 vol 872 cc413-4
14. Mr. Younger

asked the Secretary of State for Scotland whether he will now raise the needs allowance for the rent rebate and rent allowance schemes, in order to give help to those on lower incomes with the payment of their rents.

Mr. Millan

The level of the needs allowances for rent rebate and allowance schemes is being kept under review.

Mr. Younger

Does the Minister agree that the family with the lowest earnings suffers most from inflation and the rising cost of living? How, in that context, can he possibly justify introducing a rent freeze which gives a present of £26 a year to all those on high incomes and nothing to those with full rent rebates? Are these correct Socialist priorities?

Mr. Millan

That is not true, but we are, in many other aspects of our policy, such as those dealing with food subsidies and the rest, doing a great deal to help the lower-paid workers. I hope that we shall have the support of hon. Members opposite in doing so.

Mr. Robin F. Cook

Does my hon. Friend not agree that one of the major arguments against any means-tested benefit is that the income levels that it sets out are liable to fall behind because of inflation and that, for that reason and a number of others, it is far better to set rents at a level that the average family can afford than to increase them to the point at which the family on average earnings has to rely on a means-tested benefit, as was the avowed policy of the last Government?

Mr. Millan

I do not want to be taken as being in agreement with anything that the last Government did, but I cannot fully accept what my hon. Friend says. There is certainly a place for rent rebate schemes.

Mr. Buchanan-Smith

Can the hon. Gentleman explain any further in what sense £500 million in food subsidies is a social priority in helping those who are really in need, any more than the rent freeze was for tenants? If help needs to be given—I support it when it is needed —would not it be better to give to those in need rather than right across the board?

Mr. Millan

The hon. Gentleman seems to have forgotten that these subsidies are directed towards the basic foodstuffs which play a disproportionate part in the budgeting of lower-paid families

Mr. McElhone

May I assure my hon. Friend that the people of Scotland welcome the rent freeze imposed by this Government? Will he press his right hon. Friend in the Cabinet for an early repeal of the Housing (Financial Provisions) Scotland Act? If he does not, many local authority social work departments will break down because of the many families who are experiencing difficulties as a result of the provisions of this iniquitous Act

Mr. Millan

My hon. Friend is right to say that the rent freeze has been widely welcomed in Scotland