HC Deb 16 December 1991 vol 201 cc4-5
2. Mr. Gerald Bowden

To ask the Secretary of State for Social Security how many families will gain from the three upratings of child benefit that will occur in the 12 months to April 1992.

The Parliamentary Under-Secretary of State for Social Security (Mr. Michael Jack)

The answer is 6.8 million families.

Mr. Bowden

Will my hon. Friend confirm that 40 per cent. of people who gained from the upratings would not receive a single penny—perhaps I should say a single ecu—if they lived in socialist France?

Mr. Jack

I am delighted to confirm to my hon. Friend that the structure of our child benefit scheme ensures that the first child receives benefit, unlike the position under the scheme in France. He may be interested to know that several European countries have extra conditions on entitlement—[HON. MEMBERS: "Reading."] Perhaps it is, but at least it gets the facts out and that is something certainly lacking on the Opposition Benches.

Germany, Greece, Italy and Spain have means tests. In Belgium, Italy and Portugal, there are links to insurance status. I hope that those facts impress the House.

Mr. Allen

To the issue of mortgages and pensioners, we now add child benefit—another part of the Government's real social charter. Is not the Minister thoroughly ashamed of his record on child benefit? The Government are trying to make good what they put wrong during the previous 10 years, but second and subsequent children still receive £2.05 a week less in real terms than they would have received if the Government had maintained child benefit at 1987 levels. Millions of pounds have been taken from mothers and children. Is not the Minister thoroughly ashamed of himself?

Mr. Jack

I say very quietly to the hon. Gentleman that we need no lessons on that subject, given the record of the previous Labour Government, who reduced benefits to families by 7 per cent. in real terms whereas we have increased them by 29 per cent. During the period when child benefit was not uprated, we did not stop helping families; we gave £600 million in real terms to low-income families. In the 12 months to April 1992, child benefit will increase three times and other benefits will be uprated. That is a record of which we can be proud.

Mr. Squire

My hon. Friend deserves congratulations on the Government's child benefit record over the past couple of years. Does he agree that the policy of family support extends to family credit? Will he contrast the 300,000 people who are receiving family credit with the impact of a minimum wage policy, which would have a devastating effect on many families and, of course, on single people?

Mr. Jack

My hon. Friend adverts to an interesting statistical coincidence. Well in excess of 2 million successful claims have been made for family credit whereas, according to some estimates, a minimum wage would put 2 million people out of work.