§ Mr. Michael Lathamasked the Secretary of State for Social Services what would be the net cost to public funds, after receipt of tax, of raising family allowances, family income supplement, retirement pensions and supplementary pensions by a sufficient amount to compensate the recipients fully for the total abolition of food subsidies; and how this net expenditure would compare with the proposed £1,700 million ceiling for food subsidies in the next financial year.
§ Mr. O'MalleyExpenditure on food subsidies in 1975–76 is expected to be of the order of £550 million, which together with expenditure in the current year will be well within the limit of £1,200 million proposed in the Prices Bill for the period up to 1st April 1976. The precise value of food subsidies varies according to circumstances but averages about 22½p a week per person, or 25p a week per retirement pensioner. To increase the benefits mentioned by these amounts respectively would cost something like £190 million a year, or £160 million after allowing for income tax receipts. Corresponding increases to other social security benefits would substantially increase the cost. But to compare these figures with each other would be misleading, since the extent to which these benefits may be increased depends on a wide variety of other factors, including the movement of prices generally and other developments affecting gross and net incomes.