§ Mr. Ralph Howellasked the Chancellor of the Exchequer (1) whether he is 248W aware that in some cases a single mother with two children aged under 11 years and a gross income of £60 per week, will have less spending power if the rate of tax is reduced to 33 per cent. than she has at present, due to loss of entitlement to free school meals; and if he proposes to take steps to change this situation;
(2) whether he is aware that in some cases a married couple with two children and earnings of £50 per week will have 36p per week less spending power if the rate of tax is reduced to 33 per cent. than they have at present, due to loss of entitlement to free school meals; and if he proposes to take steps to change this situation.
§ Mr. Robert SheldonI am aware that a reduction in rates in income tax could in particular cases have the result which the hon. Member describes. Eligibility for free school meals is determined on the basis of weekly income net of tax, national insurance contributions, rent and rates and various other allowances and disregards. It follows that an increase for whatever reason is net weekly income, which is less than the value of a week's free meals, can result in a parent being marginally worse off. This is difficult to avoid in every case without changing the whole basis on which parents are assessed. But the fact that eligibility for free school meals, once given, lasts 12 months regardless of any change in financial circumstances goes a long way to mitigate this situation.