HC Deb 16 July 1974 vol 877 cc232-3
12. Mr. Dempsey

asked the Secretary of State for Social Services if she will take steps to increase the Supplementary Benefits Commission's disregard of £2 from weekly earned income; and if she will make a statement.

Mr. Robert C. Brown

It is our intention to review the disregard of earnings, together with the other disregards in the supplementary benefit scheme, as soon as financial and manpower considerations allow.

Mr. Dempsey

Is my hon. Friend aware that a housewife reported to me that she had accepted a job at £18 a week but was shocked to discover that her husband's supplementary benefit was reduced by £16? She was therefore working for only £2 a week. Since this matter is urgent and we are anxious to encourage eligible housewives to accept employment, will not my hon. Friend give a date when this miserable disregard will be increased to a more reasonable level?

Mr. Brown

I can assure my hon. Friend that we are well aware of the need for increasing the disregard, but the most important thing in the prevailing economic circumstances when we took office was to assist pensioners and others on supplementary benefit, and I am pleased that from next Monday pensioners and others in receipt of benefit will be getting the biggest-ever increase in the history of the pension scheme.

Mr. Marten

Could there be an interim increase fairly quickly in the disregards for one-parent families?

Mr. Brown

We are considering that.

Mr. Hooley

The figure of £2 was fixed years ago and is totally ridiculous in present circumstances. Does my hon. Friend accept that the whole system of disregards within the supplementary benefit arrangements are a savage disincentive to anybody to help themselves in any way?

Mr. Brown

I do not deny for one moment that the value of disregards has fallen by approximately 43 per cent. since they were introduced by a Labour Government in 1966. Within the financial constraints that are upon us we are anxious to improve them.