HC Deb 22 February 1973 vol 851 cc187-8W
Mr. Michael Meacher

asked the Secretary of State for Social Services of the 330,000 low-paid workers subject to a poverty surtax of over 50 per cent., how many had gross earnings under£12,£12-£15,£15-£18,£18-£21,£21-£24,£24-£27,£27-£30, and over£30 a week; how many had one, two, three, four, five and six or more children; and what was the relative contribution of free school meals, free welfare milk, family income supplements, taxation, and other benefits or compulsory payments in producing these poverty surtax rates.

Sir K. Joseph

As indicated in my reply to the hon. Member on 1st February, it is incorrect to suggest that there are 330,000 families actually in the position that they would gain less than 50p in net income following a rise of£1 in gross earnings through the combined effects of taxation and of reductions in means-tested benefits.—[Vol. 849, c.458–60.] In that reply I emphasised that the theoretical estimates over-stated the numbers because the unrealistic assumption has had to be made that benefits were adjusted immediately income changed. Estimated distributions of the theoretical figure of 330,000 which are subject to wide margins of error, are as follows:

Number (thousands) Per cent.
(a) By gross weekly earnings of head and wife:
Under£12 0 0
£12-£15 2 0.6
£15-£18 22 6.7
£18-£21 46 13.9
£21-£24 64 19.4
£24-£27 48 14.5
£27-£30 51 15.5
Over£30 97 29.4
330 100.0
(b) By number of children:
1 94 28.5
2 102 30.9
3 56 17.0
4 or more 78 23.6
330 100.0

These figures related only to two parent families with head in full-time work.

I regret that the answer to the last part of the question is not available.