HC Deb 25 May 1976 vol 912 cc97-8W
15. Mr. Grist

asked the Secretary of State for Social Services whether he has conferred with the TUC over the effect of the poverty trap.

Mr. Orme

I am regularly in touch with members of the TUC Social Insurance Committee and, in fact, met them on Monday 17th May, though this subject was not discussed.

41. Mr. Arnold

asked the Secretary of State for Social Services what steps he is taking to ameliorate the effect of the poverty trap on low-income families.

Mr. Orme

Steps already taken through 12-months awards for such benefits as family income supplement, free welfare milk and free school meals and the regular increases of income limits for benefits ensure that the effects of the poverty trap are very limited in practice.

46. Mr. Peter Bottomley

asked the Secretary of State for Social Services what consultations he has had with interested parties about the increase in the numbers of low-income families who will be paying an effective marginal rate of taxation of 75 per cent. or over.

Mr. Orme

None. I have seen no evidence to suggest that the number of low-income families actually subject to a marginal tax rate of 75 per cent. is high or is increasing, and it is an objective of this Administration to contain the effects of the poverty trap by all practical means. On this I would refer the hon. Member to my reply to the hon. Member for Hazel Grove (Mr. Arnold) today.

My right hon. Friend the Chancellor of the Exchequer did, however, meet and discuss these matters with the Child Poverty Action Group on 12th May, as he said in his reply to the hon. Member for Harrow, Central (Mr. Grant) on 19th May 1976.—[Vol. 91, c. 570–3.]