§ Mr. David Steelasked the Secretary of State for Social Services at what value family allowances would have to be paid if they were to equal their value in 1968.
§ Mr. Alec JonesOn the basis of the movement in the General Index of Retail Prices up to October 1974, the latest month for which figures are available, the family allowance of a two-, three- and four-child family would now have to be increased to £1.55, £3.26 and £4.98 respectively to restore the gross value held by the corresponding allowances in October 1968.
299W
§ Mr. David Steelasked the Secretary of State for Social Services at what level family allowances would have to be paid in April 1975 to equal their value in real terms in 1968.
§ Mr. D. E. Thomasasked the Secretary of State for Social Services what change in real terms the proposed family allowance for the second child of £l.50p per week represents compared with the corresponding allowance of 90p in 1968.
§ Mr. Alec JonesThis will depend upon the movement in prices up to April 1975.
§ Mr. David Steelasked the Secretary of State for Social Services if she can estimate the number of families who will continue to draw the family income supplement after family allowances are increased in April 1975.
§ Mr. Alec JonesAn estimate cannot be made at present. The number will depend on the details of the FIS up-rating. These will be announced in due course.
§ Mr. David Steelasked the Secretary of State for Social Services if any families will lose the whole of their family allowances increase because of the loss of (a) family income supplement, (b) free school dinners, (c) other means-tested benefits and (d) payment of income tax, or any combination of these factors, which make up the poverty trap.
§ Mr. Alec JonesIt is not possible at present to estimate the extent to which families will lose their means-tested benefits or will pay more income tax. One of the reasons for the increase in family allowances is the need to reduce dependence on means-tested benefits. The general effect of this is that means-tested benefits will be paid at lower rates than would have been the case but for the family allowance increase.
§ Mr. David Steelasked the Secretary of State for Social Services how many supplementary benefit recipients will lose the family allowance increase due to take place in April because the increase will be counted as part of reckonable income.
§ Mr. Alec JonesIt is estimated that about 214,000 supplementary beneficiaries are in receipt of family allowance and will have the increase in that allowance300W set against the increase in their supplementary benefit requirements which will take effect from 7th April next.