§ 3. Mr. Yeoasked the Secretary of State for Social Services what further representations he has received regarding the Green Paper "The Reform of Social Security".
§ The Secretary of State for Social Services (Mr. Norman Fowler)By today some 450 representations have been received about the Government's proposals for the reform of social security.
§ Mr. YeoIs my right hon. Friend aware that of the many welcome aspects of these proposals one of the most important is the arrangement whereby benefit will be withdrawn on a tapering basis in relation to net rather than gross income? Is he further aware that many employers in my constituency have drawn attention to further examples of how the present system acts as a disincentive to people seeking jobs?
§ Mr. FowlerI entirely agree with my hon. Friend. That change will mean that we can tackle the unemployment and poverty traps in a way that has not been possible until now.
§ Mr. Hugh BrownMany of my constituents are, unfortunately, in receipt of supplementary benefit. When shall I be able to advise these practical people whether they will be better or worse off after the reviews?
§ Mr. FowlerThe hon. Gentleman will be aware of our proposals in the Green Paper. In the White Paper we shall put forward illustrative figures, but, of course, ultimately he will have to await the uprating in April 1987 to know the exact rates.
§ Mr. Ralph HowellDoes my right hon. Friend accept that there is no way in which he or anyone else can solve the unemployment or the poverty traps unless tax is brought into the equation? So long as tax and social security are kept separate, there is no way in which the poverty or unemployment traps will be solved.
§ Mr. FowlerI am aware of my hon. Friend's interest in this matter. In the Green Paper he will have seen a number of ways in which the two sytems are moving closer together. He will also be aware that in the autumn my right hon. Friend the Chancellor of the Exchequer will be making his personal taxation proposals.