§ Mr. Marlow
asked the Secretary of State for Social Services whether family income supplement is paid on the basis of gross income rather than net income; and, if so, why.
§ Mrs. Chalker
Yes. The use of gross rather than net income flows from a decision when the family income supplement scheme was being introduced to make it a simple one. As my right hon. Friend the then Secretary of State for Social Services explained to the House during the Second Reading debate on the Family Income Supplements BillIt will be as simple an income test as we can devise".—[Official Report, 10 November 1970; Vol. 806, c. 224.]This enables claims to be decided without detailed inquiries, for example into a working family's outgoings and other personal circumstances. It also means that only a small number of staff are needed to run the scheme.