HC Deb 20 May 1991 vol 191 cc621-2
2. Mr. John Greenway

To ask the Secretary of State for Social Security how many families receive family credit; and how many received family income supplement in 1978–79.

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

I am pleased to tell the House that at the end of February 1991 there were 322,000 families in receipt of family credit—a figure more than four times higher than the 79,000 families who were in receipt of family income supplement in February 1979. The figure is the latest available, but does not fully reflect the full effects of the recent advertising campaign.

Mr. Greenway

Is not this increase in the number of families receiving special help through family credit—more than four times the number who used to receive the old family income supplement — a vindication of the Government's policy of introducing this rather better structured benefit? Will my hon. Friend undertake a review of the arrangements for claims by self-employed people on low incomes, many of whom find the process of claiming onerous and taxing? Does he agree that if the Government streamlined the application process that would show their clear commitment to helping low-income families facing genuine hardship?

Mr. Jack

I thank my hon. Friend for his commendation of family credit. He asked specifically about the structure of the benefit. It may be worth reflecting that 65 per cent. of people on the benefit receive £20 a week or more, 30 per cent. receive £a week or more and 17 per cent. receive £a week or more. Forty-five per cent. of the self-employed get £50 a week or more. I assure my hon. Friend that work is under way at the university of York to investigate the matters to which he referred.

Mr. Battle

Do not those figures show that more people need family credit because of an increase in poverty resulting from low pay? Will the Minister tell us the percentage uptake of family credit? That would be the key figure.

Mr. Jack

The hon. Gentleman is something of an expert on social security and he will know that not until the publication of the 1989 family expenditure survey will an accurate figure be available to answer his question. However, I can tell him that, as a result of our advertising campaign, claims are running at an all-time high of about 20,000 a week. I like to think that that reflects improved awareness of the excellence of the structure of family credit.

Sir Peter Emery

Will my hon. Friend tell the House exactly how much money the taxpayer is spending on such support? Will he confirm that the Opposition thought that the benefit should be allowed to "wither on the vine"? What will people claiming the benefit do if that happens?

Mr. Jack

I assure my hon. Friend that, far from allowing this excellent credit to wither on the vine, we have fertilised its roots. The uptake is growing considerably and we estimate that we shall spend some £543 million on it this year.