§ Mr. Gowasked the Secretary of State for Prices and Consumer Protection what is her latest estimate of the total cost of food subsidies during each of the two years ending 5th April 1977; and how much of the total expenditure during the year ending 5th April 1976 will be received by households with an income of less than £50, £60 and £70 per week.
§ Mr. MaclennanExpenditure on the food subsidy programme in outturn prices is estimated to be £575 million in the financial year 1975–76 and of the order of £400 million in 1976–77. Using income and expenditure patterns given in the 1974 family Expenditure Survey, it is estimated that households with weekly average incomes of less than £50, £60 and £70 receive 37 per cent., 49 per cent. and 61 per cent. of the total food subsidy respectively.
§ Mr. William Hamiltonasked the Secretary of State for Prices and Consumer Protection what is the total sum that will be committed this year to food subsidies; what is this sum in 1974 prices; and what effect the subsidies are having on the food index and on the retail price index.
§ Mr. MaclennanThe estimated cost of food subsidies in the current financial year is £575 million, equal to about £480 million at 1974 prices. In January, but for the food subsidies the food index and the all-items retail price index would have been respectively about 4 per cent. and about 1 per cent. higher than they were.
§ Mr. William Hamiltonasked the Secretary of State for Prices and Consumer Protection if she will estimate the reduction in the cost of living as a result of the Government's food subsidy programme for (i) a single pensioner house- 70W hold, (ii) a married pensioner household, (iii) a married couple with two children and (iv) a married couple with four children.
§ Mr. MaclennanOn the basis of National Food Survey results for the third quarter of 1975, the estimated average benefit of food subsidies is:
These benefits represent a saving of about 5p in the £ on household food purchases.
Households containing: Pence per week Single pensioner 24 Pensioner couple 44 2 adults and 2 children 68 2 adults and 4 or more children 101
§ Mr. William Hamiltonasked the Secretary of State for Prices and Consumer Protection if she will list in the Official Report the complete list of foods which are at present being subsidised; and if she will indicate against each (a) what has been the maximum subsidy paid on each unit subsidised and (b) the current subsidy on each unit.
§ Mr. MaclennanThe information is as follows:
Unit Value of Food Subsidies at Retail Level Maximum (pence) Present (pence) Milk, per pint 2½ 2 Bread, per large loaf 3 2 Bread, per small loaf 2 1 Butter, per lb. 11* 11* Cheese, per lb. 12 10 Household flour, per 3 lb. bag 3 3 Tea, per lb. 8 8 * Includes a subsidy equivalent to 2p per pound received from FEOGA (EEC).
§ Mr. William Hamiltonasked the Secretary of State for Prices and Consumer Protection if she will estimate what effect the food subsidy programme has had on the rise in prices on those goods which are subsidised; and if she will compare this with the general rise in prices of non-subsidised goods.
§ Mr. MaclennanIt is estimated that between the start of the food subsidy programme in March 1974 and December 1975 the prices of subsidised foods had risen by 37 per cent. on average and the prices of non-subsidised foods by 44 per cent. Over the same period, it is estimated that the prices of subsidised 71W foods would have risen by an average of about 56 per cent. if subsidies had not been introduced.