§ Q13. Mr. Meacherasked the Prime Minister on what calculations he bases his assertion that what the Government propose by way of family income supplement amounts to a greater sum than would have been achieved under a 10s. increase in family allowances.
§ The Prime MinisterThe estimates of the net cost of a 10s. increase in family allowances accompanied by a matching reduction in the personal tax allowances (or "clawback") take into account the number of children involved, the tax that would be recovered and consequential savings in social security benefits. In the case of the family income supplement the estimate is based on the information collected for the Family Expenditure Survey for 1968, allowance being made for the increase in earnings up to August, 1970.