HC Deb 21 December 1982 vol 34 cc485-6W
Mr. Arnold

asked the Secretary of State for Social Services if he will estimate the number of low-paid workers affected by the poverty trap during 1981–82.

Mr. Newton

The last estimates are of average numbers in the poverty trap in the calendar year 1979, and I refer my hon. Friend for the details to my reply to my hon. Friend the Member for Anglesey (Mr. Best), on 21 June 1982.—[Vol. 26, c.25–28.] It is more likely that there has been an increase in the numbers since 1979 because more working families are eligible for help with their housing costs and because of the real improvement in family income supplement. During the tax year 1981–82 about 120,000 families were subject to a theoretical marginal tax rate of more than 80 per cent. because they were paying income tax and national insurance contributions and were in receipt of FIS.

Mr. Arnold

asked the Secretary of State for Social Services if he will seek to amend the regulations governing means-tested benefits in order to reduce the numbers of low-paid workers affected by the poverty trap.

Mr. Newton

There are no plans to amend the regulations at the present time.