HC Deb 15 July 1976 vol 915 cc886-8
9. Mr. Andrew F. Bennett

asked the Chancellor of the Exchequer what the value of the social wage is to a family of two adults and two children, under 11 years of age, with an income close to the national average for the most recent date for which figures are available; and how this compares with figures for February 1974.

Mr. Robert Sheldon

As I said in answer to a similar Question from my hon. Friend yesterday, the social wage amounted to about £1,275 per member of the working population of 1975–76—that is, about £25 per week. The corresponding figures for 1973–74 and 1974–75 were £14.50 and £20 per week respectively. No estimates are available of the value of the social wage to particular types of household.

I would, however, refer my hon. Friend to the Central Statistical Office estimates of the distribution of taxes and benefits between households. The most recent were published in Economic Trends of February and refer to 1974.

Mr. Bennett

I thank my hon. Friend for that reply. Does he agree that in announcing any changes in public expenditure for next year it will be important to publish the effect of those changes on the social wage and, if possible, for a typical family household?

Mr. Sheldon

I shall be happy to do so.

Mr. D. E. Thomas

Will the hon. Gentleman give us an asurance that his Department will reconsider the remarks made by his right hon. Friend the Chancellor of the Exchequer on the social wage in his Budget speech, in which he argued that the social wage had increased at a far higher rate than the wage from employment? Does he realise that the social wage is paid to the majority of the population who are not earning—namely, the unemployed, the sick and the elderly?

Mr. Sheldon

I accept that the social wage is an aspect of the income of each member of the community that has to be considered. This is part of the consideration of public expenditure that is now taking place.

Mr. Nott

Would not everyone prefer to have lower taxation and a lower social wage? Presumably that is why the Chancellor intends to cut public expenditure further—that is, because he feels that people would rather have more choice about how they spend their money than have the Government choose for them.

Mr. Sheldon

We well understand the opposition of Conservative Members to the services that benefit large sections of the community who are utterly depen- dent upon them. If it is proved necessary to bring about the changes that have been suggested, that will be agreed only with reluctance and only for the economic results that we shall be urgently requiring.