HC Deb 22 February 1963 vol 672 cc105-6W
Mr. Maurice Macmillan

asked the Minister of Pensions and National Insurance (1) what was the number of cases, in the last 12 months for which figures are available, where National Assistance was refused or the allowance reduced on the grounds that the weekly total calculated according to the National Assistance scales then in force would be larger than the normal weekly earnings of the person concerned; what was the number of such cases which were taken to appeal; and what was the number of appeals which succeeded;

(2) in cases where National Assistance payments are reduced from the full amount according to the scales in force because this would bring such payments above the normal weekly earnings of the person concerned, what is the average level of weekly earnings used in this calculation;

(3) what was the number of cases, in the last 12 months for which figures are available, when the National Assistance rate was not paid to the fullest extent of the scales then in force because this would have brought the weekly sum above that of the average earnings or income level of the person concerned, in which the extra income was due to family allowances; what was the proportion in such cases of families with up to four children under the age of I I years; and what was the proportion of families with five children or more under the age of 11 years.

Mr. N. Macpherson

The principle on which National Assistance allowances are adjusted in the circumstances referred to by my hon. Friend is that the amount paid to a person by way of insurance benefit and National Assistance on account of unemployment shall not be greater than the amount of the net earnings which in the opinion of the Board and in the light of local knowledge that individual would be likely to receive if he were currently employed in his normal occupation in the locality in which he lives. Both amounts are considered apart from family allowances, which are thus not affected.

In December last, about 25,000 assistance allowances were restricted in this way. The number of appeals in such cases is not recorded but is believed to be small; nor is the average of the net earnings by reference to which payments are restricted known.

The proportion of families affected with up to four children under the age of 11 is not available, but an analysis made in 1959 showed that among the recipients of assistance allowances then restricted according to the individual's earning capacity about 43 per cent. had five or more children under 16.