HC Deb 11 May 1971 vol 817 cc65-6W
50. Mr. Meacher

asked the Chancellor of the Exchequer what extra weekly charge he estimates has been placed on the average paid worker as a result of the extra health and welfare charges already announced, and as a result on rising prices since June, 1970 up to the last available date.

Mr. Patrick Jenkin

Details of the weekly extra social service charges paid from April, 1971 by the average worker earning£28 a week are shown in the following table, together with details of the effects of the reduction in the standard rate of income tax and increased child tax allowances operative from the same date. The effects of the charges will vary according to individual circumstances, but in general these will be more than offset by the changes in taxation.

In the period June, 1970 to March, 1971, the latest date for which information is available, the Index of Retail Prices rose from 139.9 to 149.0, an increase of 6.5 per cent. The effect of this increase on the weekly expenditure of an average worker earning£28 a week will vary according to his pattern of personal consumption.

Following is the table:

NET EFFECT (NEW PENCE PER WEEK) ON WEEKLY EXPENDITURE OF SINGLE PERSON AND MARRIED COUPLE WITH NUMBER OF CHILDREN SHOWN EARNING£28 PER WEEK.
Social Service Charges Taxation Charges Net Effect
Single person +3 -39 -36
Married couple plus 0 +6 -32 -26
Married plus 1 +23 -57 -34
Married plus 2 +38 -83 -45
Married plus 3 +53 -108 -55
Married plus 4 +33 -133 -100
Notes:
1. The figures are averages for the family types specified.
2. The youngest child in each family is assumed to be under 5 and the other children, if any, between 5 and 11.
3. The social service charges include the increased cost of school meals, the withdrawal of the subsidy for cheap welfare milk and dental, optical and prescription charges.