§ Mr. Ralph Howellasked the Chancellor of the Exchequer if he will elucidate his 604W reply to the hon. Member for Norfolk North—[Official Report, 25th May, c. 741]—in which he stated that the proportion of families eligible for family income supplement which was also liable to pay income tax was very small, in the light of the reply given to the hon. Member for Birmingham, Perry Barr (Mr. Rooker)—[Official Report, 13th June, c. 451]—in which it was estimated that just over two-thirds of families receiving family income supplement in March 1978 had incomes above the tax threshold when they claimed family income supplement.
§ Mr. Robert SheldonI greatly regret that there was an error in the answer given on 26th May—[Official Report, Vol. 950, c. 741.] As I have explained in my letter to the hon. Member this Question was confused with his earlier one answered on 11th May—[Official Report, Vol. 949, c. 584]—referring to tax at the basic rate only. It should have been said that few families receiving family income supplement are liable to tax at the basic rate, but about two-thirds or three-quarters are thought to be liable at the lower rate.