§ Mr. Pardoeasked the Chancellor of the Exchequer on what evidence he based his assumption, in his response to the Child Poverty Action Group's post-Bud-get memorandum to him, that low-income families gained wage settlements equal to the average settlements from March 1974 to March 1975 of 27. 9 per cent.; and if he is still satisfied that the increases in benefits of November 1975 taken together with the effects of his 1975 Budget will represent real gain in income for low-income families unable to work.
§ Mr. Joel BarnettThe figure quoted for the earnings of low-income families was no more than an assumption, as my right hon. Friend made clear at the time, based on the latest figure for average 257W earnings which was then available. What evidence we have, from the New Earnings Survey, suggests that the earnings of low-income families increased at least as fast as the average, and possibly faster.
For families unable to work, the increase in Unemployment and Supplementary Benefit in November was about 13¼ per cent. The increase in long-term benefits was about 14½ per cent. By comparison, the increase in the retail price index from April, when benefits were last increased, to October, the latest month for which figures are available, was only 10.4 per cent. This includes the price effects of the measures announced in the Budget.
The figures do not bear out the assumption made by the Child Poverty Action Group in "Back to the Thirties for the Poor?" that prices would rise at an annual rate of 34 per cent. between April and November. On the contrary, although final figures are not yet available for November, they bear out earlier expectations that the purchasing power of benefits would be higher in November than in April.