DOCUMENT IS THE P R O P E R T Y OF H E R B R I T A N N I C M A J E S T Y S G O V E R N M E N T )
!
C(66) 182
16th D e c e r n b e r ,
C O P Y NO.
fj g
1966
CABINET
FAMILY
ENDOWMENT
Note by the S e c r e t a r y of the Cabinet
1
I circulate f o r the information of the Cabinet the attached
r e p o r t by officials which is r e f e r r e d to in the m e m o r a n d u m ( C ( 6 6 ) 181)
by the Chancellor of the Exchequer and the M i n i s t e r without P o r t f o l i o .
(Signed)
hi
BURKE TREND
II
Cabinet O f f i c e , S. W. 1. 16th D e c e m b e r ,
1966 \ i
SECRET
FAMILY ENDOWMENT
On 1 7 t h November t h e C a b i n e t
endowment a g a i n s t
t h e background o f
ministry
of
a report
(S.3,(66)27)
Social
on p o s s i b l e
of t h e i r
Security
for
survey i n t o
family
discussion the Cabinet
Exchequer,
scheme
by o f f i c i a l s
a recent
(Official)
invited
milk.
(C.C. (66)58th
to
As a r e s u l t ,
the Chancellor
of
Social
Conclusions,
the Cabinet
Security
(b)
Committee
and ( c ) a p r o p o s a l
and w e l f a r e
family­
of
the
Without P o r t f o l i o ,
c o n s i d e r a t i o n t o b e g i v e n t o an a c c e p t a b l e
of t h e T r e a s u r y ,
and t h e M i n i s t r y
of
of
circumstances,
Services
in c o n s u l t a t i o n with the M i n i s t e r
arrange f o r u r g e n t
endowment
family
endowment
s c h o o l meals
t h e problem
( a ) the findings
from t h e S o c i a l
schemes o f
increase c h a r g e s
considered
Item 4 ( 1 0 ) ) .
Office,
to
family
This
Inland
report
Revenue
a n a l y s e s f o r them t h e main
possibilities.
Public E x p e n d i t u r e
2,
Background
The c a l c u l a t i o n s
Ministers
by t h e P u b l i c E x p e n d i t u r e
have b e e n b a s i n g t h e i r d e c i s i o n s
1967-68 p r o v i d e d
on a new scheme
allowance.
for
of
a contingency
family
on p u b l i c
allowance
o f £50m.
that,
n o t now b e i n t r o d u c e d
£10m. i n t h a t y e a r .
Possible
3.
at t h i s
stage
i s t o improve
with higher
incomes.
on t h e
about
acceptable
improving the
In b o t h the S o c i a l
Services
(Official)
approaches:
i n t h e r e p o r t by t h e S o c i a l
( a ) an I n c r e a s e
ssociated w i t h a r e d u c t i o n
down t o s u p p o r t
i n family
i n income t a x c h i l d
and
1
Committee and C a b i n e t ,
Committee t e n d e d t o n a r r o w
of
endowment
The p r o b l e m i s how t o do t h i s
*
of the schemes p u t f o r w a r d
a
that
some way t h r o u g h
the "endowment"
where t h draw t h e l i n e .
Afferent
this
1968/9.
w i t h low incomes w i t h o u t n e c e s s a r i l y
of f a m i l i e s
^
against
Schemes
The o b j e c t i v e
families
until
Expenditure
a scheme c o s t i n g
No g u i d a n c e has b e e n g i v e n
cost of a scheme w h i c h d i d not s t a r t
in
on t h e a s s u m p t i o n
until
1967-68, he would b e p r e p a r e d t o c o n t e m p l a t e
on w h i c h
expenditure
endowment w o u l d be a c h a r g e
The C h a n c e l l o r has i n d i c a t e d
any such scheme c o u l d
Committee
consideration
Services
for
one o f t w o
allowances,
allowances
(hereafter
/referred
oferred
t o as a " g i v e
and t a k e "
jenefit
of t h e i n c r e a s e
f tax,
and
;
(b)
to those paying
an i n c o m e - t e s t e d
aper a c c o r d i n g l y
confines
3
j,
In considering
these
its
of
sbove showed t h a t
there
;0O,OOO c h i l d r e n ,
who a r e l i v i n g
level
-fie f a t h e r
benefit but
either
subject
it
are
about
get
or e l s e
t o t h e wage s t o p .
the number o f
these
Both t y p e s
scheme u n d e r c o n s i d e r a t i o n
extent
families
supplementation
increase
elimination
(including
of
to
in para.
1
about
supplementary
level
because
supplementary
measure
would
could
of
the
reduce
cases).
not
only
be
o f wages up t o
disregards)
family
types,
i n mind
would r e d u c e but
achieved by s t r a i g h t f o r w a r d
expensive
two
(including wage-stop
Complete
prohibitively
these
t o which i t
eliminate w a g e - s t o p c a s e s .
standards
on
This
containing
A significant
of
supplementary b e n e f i t
rate
income up t o t h a t
effectiveness
of
standard
survey r e f e r r e d
work
the
the
to hear
below the current
their
"deficient"
schemes of
important
restrict
scheme.
160,000 f a m i l i e s ,
in full-time
any scheme i s
allowance
to
is
Security's
and u n a b l e t o
is
housing
schemes
Social
l e s s than the
analysis
that t h e M i n i s t r y
benefit
scheme), designed to
full
o r by a
allowances.
Principles
(j,
A "give
and t a k e "
scheme has b e e n a d v o c a t e d
grounds o f p r i n c i p l e .
only be
7.
These
and r e s i s t e d
on
arguments c a n n o t be r e c o n c i l e d :
they
can
stated.
On t h e
one h a n d ,
family a l l o w a n c e s
it
is
are both intended t o
with c h i l d r e n as a g a i n s t
provide a f l e x i b l e
what e x t e n t ,
this
argued that
c h i l d tax r e l i e f
give
those without;
method f o r
advantage
they should be c o n s i d e r e d
determining
an a d v a n t a g e
that
to
cash
people
taken t o g e t h e r
selectively
s h o u l d be g i v e n ;
together
and
how,
and t h a t
in the l i g h t
they
and
to
accordingly
of
their
is
an
combined
effect.
8.
On t h e
difference
o t h e r hand,
(accepted
MI T a x a t i o n r e p o r t i n g
kind o f S t a t e
"hich a r e p a r t
the
is
argued t h a t
i n the B e v e r i d g e
in
subsidy t o
of
it
there
Report
1954) b e t w e e n f a m i l y
families,
system of t a x
essential
and by t h e R o y a l
allowances,
and income t a x
graduation,
child
Commission
which are a
allowances,
by w h i c h t h e t a x
/liability
ability
is varied
according to
the fact that someone w i t h
fom c h i l d
iiat t h e
allowances
value
of
,8 progressive
nature
n's i n c o m e , t h e h i g h e r
:
3 j o r s w i t c h from, t a x
nto t h e
taxable
give
rises
rate
allowances
capacity
o r no
and t o
benefit
that the
w i t h income s i m p l y
w h i c h means t h a t
his marginal
child
responsibilities;
him a t a x g r i e v a n c e ;
the tax,
is
family
income g e t s l i t t l e
allowances
of
5
end t o r e d u c e
a small
does not
the tax
the taxpayer's
to
the
of t a x ;
family
introduce
reflects
higher
is
and t h a t
allowances
growing
fact
a
a
would
inflexibility
system.
There a r e a l s o
fan i n c o m e - t e s t e d
two
fundamentally
scheme.
nbark on an i n c o m e - t e s t e d
reversal
of
the
eans t e s t i n g .
^elective
On t h e
family
philosophy
On t h e
of
opposed a t t i t u d e s t o the
one hand,
endowment
relying
o t h e r hand,
it
essential
[other p o l i c i e s
nsure t h a t
to
help
in
is
order to r e l a t e
the n e c e s s a r i l y
is
concentrated
is
scheme
as l i t t l e
said that
as p o s s i b l e
by a " g i v e
the
limited
a more
and
take"
available
whose n e e d s
on
Government' s s o c i a l
resources
on t h o s e
to would.represent
suggested that
a p p r o a c h t h a n would be a c h i e v e d
cherae i s
it
idea are
and
and
to
greatest.
Outline Schemes
10.
Outlines
aragraphs.
of
schemes
The e s t i m a t e s
in many c a s e s b a s e d
treated w i t h
A"give
11.
of both types are
on s m a l l
costs
for each c h i l d
allowing
increase
for
in family
qualifying
Benefits.
Committee
outlined
this amount matched by a r e d u c t i o n
the f i r s t
sell-off
each f a m i l y
and h e r e a f t e r
this arrangement
families
approximate
(and
s h o u l d be
r
savings
to
of
a scheme f o r
in the
income t a x
(i.e.
as a FAM c h i l d ) .
concentrate
with i n b u i l t
of
adjustment
additional
for
1 0 s . a week
a year gross
on N a t i o n a l
The R e p o r t
allowance c h i l d
referred
would b e t o
allowances
w o u l d c o s t £180m.
consequential
Insurance and S u p p l e m e n t a r y
for
are
following
Scheme
at present
Services ( O f f i c i a l )
in the
s a m p l e s ) , and t h e f i g u r e s
,
A straightforward
^ £45 a y e a r
and e f f e c t s
caution.
and t a k e "
£160m. a f t e r
of
given
the
Social
an i n c r e a s e
child
of
allowance
each c h i l d
after
The e f f e c t
help
those with
on t h e
higher
/income
of
less
­
income t h r o u g h
t h e normal
specimen f a m i l i e s
at l e s s
those
tax at
£4,000 a y e a r
would
per PAM c h i l d ;
12.
shown
than t h e standard
paying
higher
is
t a x machinery.
the
above
rate,
under
this
of
of
the f i r s t
year
Exchequer
in the financial
(since
a r e shown
of
35)
2m. f a m i l i e s
above)
scheme
kd.
a
about
week
the
were
it
would
the
current
be r e d u c e d
possible
it
would b e p o s s i b l e
in
subsequent
years.
minimum n e c e s s a r y
to the o r i g i n a l
£35 i n t a x c h i l d
(on
in
the
(some
further
containing
would be brought
level
about
up t o
and most
of
65%
or
the
w o u l d "be s u b s t a n t i a l l y
1^m. o f
would b e n e f i t ,
paying
i n most
helped.
them b y
t o have
wage-stop
from
about
cost
allowances
27,000
scheme
increase
7s.
in
t h e £10m.
No
18,000.
in
1967/68
worthwhile
i n 1967/68 b u t
s c h e m e w i t h i n £20m.
though n o t
earnings
e a c h PAM c h i l d
crude
i n 1967/8 ( s e e
family
i n "191$) c o u p l e d
(on a
about
a s £10m.
and t a k e "
of
to
2 above).
with average
for
would
more t h a n
t h e 10s.,
introduced
rate
would be kd.
would thus
cases
as l i t t l e
"give
An i n c r e a s e
relationship
the loss
loss
this
(see para.
a
cases
the standard
family.
substantially
could
tax at
the t o t a l
to introduce
to restore
h a d when
as f o l l o w s
benefit
(those
lose;
of
of
scheme
year
b u t £k9m.
tax reaches
families,
families
p e r PAM c h i l d ;
would cost
in a full
o r m o r e p e r PAM c h i l d .
the size
and t a k e "
allowances
income up t o
gain;
Tables):­
2m. f a m i l i e s
mentioned b y t h e C h a n c e l l o r
"give
a l l , would
statistics)
the year's
families,
deficient
About
estimate)
Para.
i n such
a week
T h e number
it
tax
year).
2/6d.
with
of
income
the d e f i c i e n t
about
a week
If
income
would be greater
w o u l d b e £33m.
the supplementary
In a l l
or
Ik.
the loss
i n t h e annexed
remaining
( d )
particular
some
paying
t a x at
on e a r n e d
may b e s u m m a r i s e d
children
above
( c )
this
latest
not a l l
57% o f
About
( b )
rate
point
the Revenue's
T h e main e f f e c t s
( a )
or not paying
t h e scheme
the b a s i s
details
Families
on
income.
The net cost
13.
i n Annex k.
the standard
lose
The e f f e c t
allowances
t h e 8s.
which
with
would
(the
allowance
family
a reduction
cost
of
£20m. i n a full
/ye ar
year b u t .C33m. i n t h e f i r s t
taxpayer w o r s e
15.
year.
I t would l e a v e
the standard
rate
o f f n o r m a l l y by 9 d . a week p e r FAivi c h i l d .
The main e f f e c t s
of t h i s
7s.
( a ) About kk'-fo o f d e f i c i e n t
c h i l d r e n would
benefit
families
be b r o u g h t
containing
up t o o r above
of the
supplementary
level.
( b ) I n a l l a b o u t
2/bd.
scheme a r e : ­
1fm. f a m i l i e s
would
benefit,
o f them frn. by
a week o r more p e r FAM c h i l d .
2^m. f a m i l i e s
( c ) About
would
lose,
normally
by 9 d . a week p e r
FAM c h i l d .
( d ) The number o f c u r r e n t
estimate)
It w i l l
be reduced
be seen t h a t
this
wage-stop
f r o m about
16.
Apart
rate
from t h e s p e c i f i c
there
any such
points
and t a k e "
affords
a means o f
without
the disadvantage
of the benefit
families
benefit
level.
This i s arguably
(see para.
(estimated
a t about
or National
allowances
them no b e t t e r
It
would
c o s t , and
income
test.
number o f
above t h e supplementary
very
desirable
by i n c r e a s e d
charges
if
for
they are
school
27 b e l o w ) .
with
one c h i l d
2 0 , 0 0 0 ) , nor would i t
(marginal
help the families
Benefits
( d )
position
additional
go t o a c o n s i d e r a b l e
( c ) I t would n o t h e l p d e f i c i e n t
family
the
common t o
concentrating
o f a new and o v e r t
would
affected
features
groups a t moderate
i n t h e area immediately
be a d v e r s e l y
apart]
in
scheme.
on t h e l o w e r i n c o m e
meals
and i n p r e s e r v i n g
general
benefit
to
effective
r e l a t e d t o t h e two schemes
are c e r t a i n
"give
( a ) T h i s a p p r o a c h
( b ) P a r t
22,000.
taxpayers.
considered a b o v e ,
virtually
( o n a crude
27,000 t o about
scheme i s m a r k e d l y l e s s
helping t h o s e whose n e e d s a r e g r e a t e s t
of s t a n d a r d
c a s e s would
families
currently
Insurance
would
receiving
Benefits,
be taken
fully
Supplementary
whose
into
cases
increase
account,
in
leaving
off.
increase
t h e payment
r e d u c e t h e t a k e - h o m e
received
pay of the father,
by t h e m o t h e r
i n some c a s e s
/substantially
and
quite
substantially.
dealt
with
of
11
p a y c u t
by
15s.
present
tax
As
The
standard
17.
11
sooner
and
of
a benefit
families
with
one
or,
outgoings
-
if
higher.
double
get
an
his
extra
in
which
either
of
the
would
of
the
benefit
two
in
less
considered
of
help
or
case
income
reduced
19.
Annex
1 describes
It8
main
features
week
(net
to
tax
E.g.
16,
week
above
would
at
under
four
would
£15a
worse
prevent
per
the
the
children,
start
instead
of
leave
the
order
of
off,
this;
FAM c h i l d
to
allowance
meet
it
to
pay
nearly
£6m.
would
the
under
a
were
equal
of
at
to
the
cost
the
be
of
more
year.
the
a tapering
one
such
insurance
housing
the
age
or
below
the
or
to
actual
30s.
give
costs.
limits
the
low-income
Those
for
family
qualifying
income
used
"rent"
(i,e.
rent
equivalent
a week
qualifying
whichever
level,
the
was
amount
basis.
scheme
qualifying
is
owner-occupier,
reasonable)
on
scheme
their
more b e l o w
exceeded
are
national
pay
man w i t h
and
slightly
the
incomes
were
he
to
present.
11
than
or
children
Scheme
the
would
at
2 or more
present.
benefit
paid
of
than
below
take-home
reframing
with
a married
scheme
be
parents
than
a week
child
this
If
half
between
a housing
to
obtain
-
at
loss
and w h o s e
and r a t e s
his
would
families
on e a r n i n g s ,
taxpayer
would
purpose
two
at
as
Allowance
would
wife
scheme
children
have
more
a major
4m.
(about
tax
-pay
either
4d.
scheme
allowances,
of
be t h a t
schemes
adjust
Housing
involve
outlined,
rate
families
the
to
rate,
both
to
level,
would
a week,
expensive
would
number
£20
possible
The
it
on e a r n i n g s
standard
18.
his
tax
ordinary
B.
while
first
three
would
deductions,
scheme
the
a week
would
under
eliminating
man w i t h
which
two
Although
the
quoted).
begin
first
£20
circumstances
effect
would
earning
smeller
schemes
a married
under
a week,
a result,
a much
example,
allowances).
financial
( f )
above,
t h e a g e
£ 1 f a m i l y
( e )
(For
in
income
some
detail.
levels
contribution)
of
for
£8
a
10s,
a
married
/couple
couple
(£6 10s. f o r a single
addition o f
17s. f o r
family a l l o w a n c e s
20.
Benefit
of f a m i l y ,
help t o
ascertainment
(it is
"normal"
every
earnings
income.
where
of
i n some c a s e s ;
administration
and l o c a l
authorities
scheme
arrangements
already
exist
The annual c o s t
is
estimated
of t h i s
at
of
deficient
families
( b ) I n a l l a b o u t
A few, possibly
in the
especially
to
There would a l s o
be
of
level,
and most
rent
including
1,000-2,000
(Such
benefits).
and e a r n i n g s
effects
are
are:­
containing
of the
would' be s u b s t a n t i a l l y
containing
266,000
overlapping
and r a t e s .
of i t s
families,
Social
t h e r e was no
supplementary
Details
about
o r above
the f i r s t .
the
remaining
helped.
n e a r l y 1m,
o f them by 2 s . 6 d .
deficient
aid
in relation
w o u l d b r b r o u g h t up t o
c h i l d r e n , would b e n e f i t ,
(c)
offices
of r e n t s
306,000 f a m i l i e s ,
o r more p e r c h i l d ,
present
and l e g a l
t o ensure t h a t
to
The
cases
The m a i n f e a t u r e s
benefit
fluctuating
between the Ministry
( a ) About 8 3 $ o f t h e d e f i c i e n t
supplementary
local
benefits,
size
i s n o t e n t i r e l y new
scheme a t p r e s e n t
of the c h i l d r e n ,
of
to
would
fluctuation.
in wage-stop
about £ 2 0 m .
except
earnings
earnings"
earningsW would
in relation
g i v e n i n t h e annexed T a b l e s ,
llfo
on a c c o u n t
and t h e i r r e b a t e s
between t h i s
and p r e s e n t
would be o f v a l u e .
a need f o r w o r k i n g a r r a n g e m e n t s
income
an
full.
"normal
but t h e c o n c e p t
unemployed,
with
s i x months by r e f e r e n c e
"normal
supplementary
All
in
(using past
and t h e e x p e r i e n c e
of
the t e m p o r a r i l y
levels
account
The u s e o f
a l r e a d y used f o r i n s t a n c e
Security
the f i r s t .
was an abnormal
there
and c h e c k i n g
determinations),
21.
after
t h e need f o r adjustment
except
difficulties
e . g . a separated w i f e )
would h e taken i n t o
and o t h e r
avoid
earnings
each c h i l d
would b e a s s e s s e d
rent,
as a g u i d e )
person,
a week
1
families,
would n o t
ii
benefit
at
all.
( d ) The number o f
estimate)
22.
current wage-stop
be reduced from
T h e a b o v e scheme i s a v a r i a n t
described
in the report
of
about
c a s e s would
27,000 to
(on a
about
crude
12,000.
o f t h e housing allowance
the Social
Services
(Official)
/The
scheme
Committee.
latter
had a
qualifying
couple
with
amount
payable
an
was h i g h e r .
scheme
these
was
The
current
benefit
essential
level,
It
would
take
income
size
It
would not
child
or
at
£1
after
about
families
for
the
a week,
a
married
first;
the
whichever
£17m.
up t o
a year.
or
about
any housing
That
above
235,000
allowance
of
families
scheme
along
level
would
also
be
ordinary
meet
It
levels
and
a necessary
may o f t e n
if
fall
an
with
or
by
the
financial
short
the
account
the
would
of
receive
the
unwillingness
Private
landlords
would be
incentive
increases
the
or
might
paid
in
for
would
expenditure
cause
of
would
for
instance
as
higher
rise
a
in
levels
find
a
to
which
there
or
employment
would
maintain
proportion
would
for
to
fear
earnings.
of
families
fail
to
claim
it
ignorance.
in
full,
and t h a t
there
Act
raised).
a disincentive
up r e n t s
the
were
undesirable.
"normal"
allowance
in
earnings
increase
be
rise
low
arrangements
paid
of
a general
put
would not
Rent
not
also
assessment
through
scheme;
wages but
income-testing,
incentive
there
periods
of
taper
to
the
of
with
income
might
qualified
such
of
a major
a general
maximum p u b l i c i t y
no
below
some
payable
rise
extension
might
earnings;
would
Even with
be
be
changed,
qualifying
affected
increasing
they
item
benefit
rent
scheme
the
opinion
accept
of
this
a reduced
their
take
income
move.
involve
those
those
supplementation
and t h e
change
(until
public
he
of
would
For
a
to
which
distress);
levels
it
not
in
family.
to
cost
variations
but
(failure
The
individual
above
related
of
of
families
"be d i r e c t l y
rent
( g )
put
a week net
and w o u l d b e n e f i t
of
and f o r
of
result
( f )
rent
was
account
automatically
( e )
£8
are:­
family
( d )
each
deficient
features
qualifying
( c )
for
15s.
cost
69% o f
and r e n t ,
( b )
of
children).
lines
( a )
of
level
"based on a c t u a l
would b r i n g
(800,000
23.
addition
The
supplementary
income
tenant
to
appeal
necessarily
is
be
the
knowledge
would
although
provided
that
therefore
of
for
h o w e v e r a v a i l a b l e t o prevent
course
under
abuse.
Staffing
2h.
Both
scheme
extra
the
would
"give
require
staff-hours
staff,
in
order
estimates
and
of
take"
a permanent
initially,
to
scheme
get
and t h e
increase
from
additional
initial
in
overtime
them p r o p e r l y
housing
staff
or
as
extra
launched.
staff-hours
allowance
well
as
temporary
Approximate
to
launch
the
schemes
are: ­
"Give
and t a k e " .
Inland
Revenue
Ministry
of
900,000*
Social
Security
5 00,000
1,UOO,000
Housing
allowance.
Estimates
of
"Give
take":
and
Ministry
permanent
of
extra
Social
staff
Security
600,000
are:­
Inland Revenue
Ministry
of
600
Social
Security
o
30
630
Housing
allowance:
* T w i c e t h i s number
financial
year.
0
Because of
within the
Ministry
if
assumes
a case
These
figures
show
choose "between
25.
The
the
the
load
that
two
of
on
and
about
part
the
many f a m i l i e s
i.e.
grounds
after
500^
way t h r o u g h
270,000,
staffing
schemes,,
effectiveness
up t o
current
the
the
supplementary
in
relation
however
he
different
to
the
two s chemes
a
brought
about
there
initial
is
90%
not
uptake.
much
launching
and t h i s
benefit
any f u t u r e
rates
will
factor,
hy
in bringing
has been
supplementary
at
supplementary b e n e f i t
1967,
of
minimum s t a n d a r d
schemes
October
launched
Security
to
period.
adjustments
families
to
scheme
Social
extra complications
tax range.
$This
Future
of
rates.
date.
probably
itself,
measured hy
The
benefit
In
"deficient"
effect
standards
the
g o up at
of
the
two
would
first
the
reference
place,
end
would d i m i n i s h
of
the
the
effectiveness
Increases
housing
of
either
in r e n t s
allowance
increases,
but
they
would
similarly
increase
scale
to
opposite
concerned
by
benefit
would by
and a l s o
would be
26.
of
and
a give
1967
and
the
adjustment,
take
scheme
the
supplementary
7 for
take
of
thus
of
would
less
benefit
examples).
deficiencies
cost
rent
for
the
the
rent
would be
reduce
and w o u l d
as
which
and
Annex
a
scheme;
earnings
In
the
families
of
families
make b o t h
a housing
scheme b e c a u s e
the
If
(see
more
between
because
a housing
following
of
the
section)
in A p r i l
1968,
a public
have
made
later
than next
6 months
could
not
elapse
a give
between
the
working
are
the
effects
allowance
introduced
be
if
the
speculative
estimates;
a
of
of
up
the
on p r e s e n t
to
cost
goes
in
reduce
interval
effectiveness
and e a r n i n g s .
Summer
effectiveness
minimum i n c o m e
(see
standards
would
yardstick.
the
schemes
allowance
tax
yield
greater.
introduction,
cost
to
increases
themselves
The longer the
its
added
this
allowance
the
a give
purposes
they
the
"guaranteed"
benefit
effective;
scheme
is
direction,
supplementary
more
the
the
without further
cost,
rent
determine
reduce
increase
that
the
measured b y
because
would
mean
because
supplementary
the
would not
scheme,
increases
effective,
scheme
scheme
take
were
in
on
scheme
of
were
of
in
the
rent
in
be
based
details
would
to
to
and
its
introduced
would have
announcement
decision
a
movements
scheme
Autumn;
of
estimates
of
decisions
and
out
be
e i t h e r c a s e not l e s s t h a n
and i m p l e m e n t a t i o n
of
scheme.
School
27.
In
Prime
the
Meals
and W e l f a r e
summing
Minister
charge
increased
for
in
up t h e
Cabinet
said that
school
the
Milk
the
meals
Autumn o f
discussion
Cabinet
and t h e
1967,
would
price
o n 17th
be
of
November,
prepared
welfare
conditionally
on t h e
to
milk
the
agree
that
should
working
out
be
of an
acceptable
things,
help
less
well
28.
Under
to
able
family
reduce
to
existing
these
should
There
be l e f t
get
are
two
such
net
relief
30.
into
On t h e
the
first
under
the g i v e
take
incomes
and
-
more c h i l d r e n
net
cost
if
with
scheme
those
relief
would
for
them o f
nearly
though
even
a s many
supplementary
the t a p e r
incomes
is
of
of
not
go
to
give
to
or
on
question
with
for
incomes
school
meals
5
(Annex
income.)
this.
above
First
it
covered
as
scheme
or
could
fully
a housing
building
more
by
allowance
supplementary
more
to
rate
all
£20
per
of
as
-
normally
benefit
generous
per
to
doubt
that
higher
with
but
hd.
two
the
per
or
£33m.
week
£20m.
net
cost
A housing
"deficient"
above
(i.e.
ones.
those
respective
FAM c h i l d .
outlined
deficient
the
and t h e
on
families
some b e n e f i t
with
week
a week
scheme
no
families
taxpayers,
9d.
is
people
concentrated
£20m.
quantify
There
more
a loss
"non-deficient"
would be
of
easy
to
up t o
normally
level)
those
at
free
The
raised.
scheme.
mean
so t h e
benefit
families
actually
meals
charge
given by
benefit
standard
would be
are
take"
would
earnings
scheme
families
other
scheme.
it
also
the
regarded
could be
type
all
scheme
and
meals
for
allowance
on
not
test.
extent
approaches
with
benefit
would
amongst
incomes
or
school
levels
should be
p e r FAM c h i l d
a loss
charges
a "give
each
pay
with
whether
income
what
benefit
possible
type
some n e t
to
relief
approach
net b e n e f i t s
so
present
school
(i.e.
necessary
if
relief
Secondly
increases
families
can g e t
who a t
for
these
all
levels
the
and
benefit
scheme p r o v i d e d
levels.
to
supplementary
that
whatever
of
which would,
them.
benefit
whether
levels
illustrates
29.
impact
arrangements
subject
is t h e r e f o r e
in f u l l
scheme
supplementary b e n e f i t s )
application
above
the
afford
below s u p p l e m e n t a r y
receiving
endowment
those
The
earning
would
above
benefit
the
effect
of
up t o
£h
or m o r e
above
cannot h e
31.
levels
etc.,
and a l s o
whatever
a give
meals
would i n c r e a s e
subject
to
32.
The
called
t h e number
testing
is
for
supplementary b e n e f i t
would b e
likely
in
a better
hut w o u l d p l a c e
the
in
those
those
if
no
for
and p a y i n g
standard
taken
taper
to
is
possible,
apply
present
those
less
rates
of
the
by
itself
above
standard
allowance
tax
made
above
incomes
a housing
were
scheme
than
for
eligible.
arrangements
with
on
remission
it
and t a k e "
those
would
at
why
in
decisions
meals f o r
"give
reason
improved
unwilling
than
place
than
paying
contributions,
authority;
school
the
to
position
the
A longer
eligible
less
that
of
of
scheme.
local
charges
levels
light
families
levels,
supplementary b e n e f i t
of t a x
for
cost
(This
seems no t e c h n i c a l
should not he
of
in general
insurance
relief
therefore
the
benefit.
itself.)
allowance
of
full
income "because
national
would be
remission
relief
gross
by the
families
situation
to t a p e r
of
or housing
off
income t e s t e d
of
rent
scheme
means
better
of
of
for
approach t h e r e
way seemed
and t a k e
limit
in terms
are net
On t h e s e c o n d
the s c h o o l
that
qualifying
expressed
qualifying
fares,
the
in
a
rates
scheme
worse
position.
Incomes
Policy
\v
33.
The White
Paper
Income R e s t r a i n t
standard o f
primary
allowance
h e b r o a d l y
a "give
(Cmnd.3150)
living
social
on P r i c e s
of
would
consistent
and t a k e "
for
with the
scheme
low p a i d w o r k e r s
wage
with
Either
achieve this
improvements
Standstill:
"improvement
members
of
a "give
and t a k e "
effect
more
scheme,
families:
that
objective.
would be
U n i o n s t h a n an i n c o m e - t e s t e d
with p r e s s u r e
stated
the w o r s t - o f f
objective".
scheme
and Incomes
the
to
and more h e l p f u l
such
a
would
would
a
housing
therefore
that
Trade
dealing
on t h e d i f f i c u l t i e s
a scheme
is
argued
the
in
of
the
or
has been
acceptable
based
of
community
and b o t h
It
Period
thus be
of
of
assistance
to
the
of
the b e n e f i t s
incomes
a "give
of
widely
than
those
people
with
incomes
argued,
therefore,
of
the p o l i c y
B u t , as has b e e n
and t a k e "
scheme
an i n c o m e - t e s t e d
above
that
incomes
supplementary
families,
restraint
benefit
more
by
"give
more
It
levels.
scheme,
a
earlier,
and w o u l d h e l p
would b e more
than
shown
would be spread
scheme
a means-tested
on l o w income
help o n l y
policy.
can b e
concentrating
consistent
and t a k e "
with
scheme.
Timing
Problems
34.
housing
A "give
of
a tax year
with
it
and t a k e "
by e a r l y
36.
prepared
It
1967.
part
way t h r o u g h
and t h e burden
It
taxpayers.
in
time
by legislation
at
and on a
is
either
that
"give
to
introduce
of
Assent
a
do
"give
and o f
scheme
t o be
recoding
to
administrative
and t a k e "
would have
f o r t h e annual
with Royal
months
Ministers
and on e m p l o y e r s
a
details
beginning
n o t now p r a c t i c a b l e
1967-68, b e c a u s e
I f
the
in the preceding
i s assumed
on t h e I . R .
1968, f i r m
(i.e.
Autumn
and t a k e "
introduced
would not be p r a c t i c a b l e
in April
be f o l l o w e d
of t h e
PAYE r e c o d i n g s
on i n d i v i d u a l
introduced
on a " g i v e
s c h e m e should b e
from A p r i l
scheme
complexities
both
t h e new a l l o w a n c e s .
effect
that
effects
with
of
arise
scheme.
and t a k e "
on t h e b a s i s
accept
timing
allowance
35.
this
of
the
were
announced
operation),
preferably
to
by the end
year.
In the case
Ministry
( 1 )
of
Social
a housing
Security
A launching
(as in
scheme)
for
for
of
payment
of
about
of
600,000 e x t r a
man h o u r s
local
of
(2),
n e w scheme
three
offices
but p a r t l y
Because
of
the
would need
to
t h e new s u p p l e m e n t a r y
and d e a l t
-
with
before
-
be
benefits
something
the operative
date
benefit.
o f t h e scheme
the
13 w e e k s
t o b e made
The launching
before
the view
that:­
the case
claims
scheme
k00,000 c o u l d b e e x p e c t e d
Security'8
( 3 )
allowance
is
period
allowed
like
( 2 )
of
after
of
would
work
over
months o r s o o f
an
estimated
in the Ministry
a 13-week p e r i o d
the operative
the launching
involved
require
period
no r i s k
of
preparatory
of
Social
mainly
date.
must b e t i m e d
disturbance
work
required
of
in
so
the
the
that
local
for
( h )
the
Also
of
because
I conclusion
offices)
that
due
the
in
provided
could
not
arrangements
it
had
benefits
planned
period
must n o t
occur
on
Ministry's
strain
the
over-burdening
be
level
to
be
could
in
local
readily
lead
but
the
that
the
deferred
year
if
be
it
-
into
(the
date
extra
could
to
At
this
or
the
August
general
which
either
to
stage
the
once
later
uprating
of
In
the
to
operative
than
the
Ministry
an
date
end
benefits
either
work
uprating­
be reduced
the
the
possibly
July
of
staff
Housing Allowance
might
November.
carry
lead
imperilling
a risk
made n o
general
scheme
would be
initial
while
and
of
invited,
such a
without
prepare
training
be
protracted).
only
could
and
afterwards
if
to
administrative
could
which
be unavoidable,
-
need
a n d make
done
or
consider
later,
correspondingly
at
shortly
heavy
if
the
claims
time
postponed
would
with
recruitment
could be
the H o u s i n g A l l o w a n c e
if
and
before
follow
Security
acceptable
the
1967/68 f i n a n c i a l
the
this
to
the
only
proved u n e x p e c t e d l y
of S o e i a l
when
launching
legislation
(including
be i n t r o d u c e d
fixed
of
1967.
the
together
necessary
local
uprating
(2),
uprating
breakdown.
1 preparations
1967,
of
heaviest
is
general
October,
offices
the
the
the
months,
considerations,
1 through
I for
end
for
the w i n t e r
to
I These
offices
case
for
of
July,
could
be
this
or,
would
require: ­
( a )
a decision
with
( b )
the
a.Housing
necessary
,Commons b y
general
Furthermore,
on no f u r t h e r
Ministry's
not b e
the
local
be
uprating
-
practicability
the
load
during
Ministry
introduced
before
to
and R o y a l
were
not
of
of
to
the
extra
1967.
consider
May
Christmas
Scheme;
legislation
Easter
offices
before
Allowance
substantial
satisfied,
could n o t
by Ministers
1968,
be
at
least
by
ahead
through
Easter
the
if
the
is
dependent
postponed.
operation
in
work b e i n g
If
go
and
Assent
be
to
the
that
as
above
1967
imposed
on
conditions
the
could
a Housing Allowance
an o p e r a t i v e
date.
Scheme
In
37.
there
summary,
may
effect
just
from
could h e
be
a
July/August
and a s a m a t t e r
scheme o r
As
is
family
of
speed
on
legislation,
a Housing Allowance
April/May
scheme a s w e l l
The
of
neither
Scheme
type
of
with
scheme
1968.
same
scheme
technique
device
for
true
is
child
repeated
practical
of
a
politics
"give
would n e c e s s a r i l y
securing
and
of
and
take"
limit
the
"give
and
thereafter.
there
could not be
is
a matter
introduction
manoeuvre
must b e
or
as
the
allowance
of
a
whether
allowances
either
scheme.
necessary
Otherwise,
technique
freedom
scheme w h i c h
time,
arises
of
a matter
between
1967.
before
a housing
Governments
39.
the
Term
The q u e s t i o n
38.
to
possibility
introduced
The L o n g e r
of
subject
no
must p r e c l u d e
mutandis
at
an
some
of
a
take"
relationship
allowances
superseded by
mutatis
why
a particular
tax
or
reason
a
givenmoment
income
other
a housing
tested
type
of
allowance
scheme.
As
kO.
a practical
introducing
nature
If
of
either
the
principle
and
policy
least
and
and s o l e l y
to
field
likely
to
be
type
within a few
with
could
about
or
basis
immediate
the
then
way
in
future
s
freedom
depend a
it
good
course
determine
If
of
however
that
it
problem
which
freedom
was
was
the
a
on
right
the
in
general
scheme
and must not
line
of
was
simply
be
problems
action
after
presented.
intended
further
of
action
deal
was p u b l i c l y
other
well
ahead.
the
the
tackled,
one
1
taken
in
would be
this
less
affected.
^Further
either
that
on
would
a n d o n how
years
explained
Government
scheme
this
some
anything
the
taken
so,
for
deal
would be
of
decided
said
introduced
as i m p l y i n g
type
decision
the Government
at
matter,
analysis
of
scheme
days^/
of
is
the
longer
needed
and a
term
consequences
further
report
of
will
introducing
be
made
ANNEX 1
A Housing
A possible
1.
families
approach
would be
to
which
families
with
"below
a qualifying
Allowance
to
the
introduce
one
or
income
Scheme
problem
of
a housing
more
would
wage
allowance
children
level
low
whose
obtain
earners
scheme
incomes
benefit
with
under
are
at
or
equal
to
their
rent^.
The
income
2.
The
housing
Official
o f £8
(£6
test
Committee's
(net
per
allowance
of
addition
a
15s.
of
insurance
single
for
each
child
family
allowances)
account
at
rate
for
s e c o n d £2
the
incentive
income
equal
to
the
if
achieved by
taper
less
families
taper
The
married
child
the
was
1s.
per
1s.
per
where
rent,
for
Services
income
limits
a married
couple
separated
wife)
with
the
first^.
All
income
for
the
limits
£2,
first
thereafter,
so
as
were up t o
level,
providing
Social
a
qualifying
earnings
qualifying
full
was
9d.
to
taken
give
into
1s.
per
some
£h a b o v e .
benefit
this
was
an
Where
would be
reasonable,
paid
or
£1
higher.
coverage
raising
steep.
than
given
by
the
qualifying
The
former
would q u a l i f y
w o u l d mean t h a t
housing
k.
more
family's
this
A wider
a n d 1s.
earn
was b e l o w
a week,
3.
to
6d.
of
the
the
had q u a l i f y i n g
e.g.
after
over
in
contribution)
person,
(except
the
illustrated
(SS(66)27)
Report
national
week f o r
scheme
for
more
the
income
would be
a full
illustrative
more
housing
families
limits
would
scheme
or by
could
making
attractive
the
because
allowance;
extending
qualify
a
for
be
more
the
reduced
allowance.
improved
couple
after
qualifying
qualifying
(£6
the
10s.
first.
limits
t h e minimum r e n t
is
single)
The
taken
level
limits
would
with
rates
into
be
suggested
a r e £8
an, a d d i t i o n
at
which
17s.
of
income
over
account
would remain
£1
a
10s.
10s.
net
for
for
a
each
the
unchanged,
but
week.
1
^ " R e n t " means r e n t a n d r a t e s
equivalent outgoings.
" C h i l d " means
education up
a c h i l d under
t o a g e 19.
or,
16
in
or
the
case
continuing
of
the
his
owner-occupier,
full-time
secondary
5,
"Disregards"
are i n
supplementary
allow t h e m
would
cost ­
the
and
families.
fiife'3
extra
Two k i n d s
criticism
each
is
disregarded
being
in
its
expensive.
for
the
of
point
the
whether
of
husband
the
by t h e h u s b a n d
so
practice
would
in
it
the
for
prompt
conceded
income,
war
and
but
wife's
one
earnings
would
be
families,
have
been
would
can be
paragraph
just
this
the
a concession
that
be
for
would
a
were
families
moreover,
and
week
be
60,000 more
a week on e a r n i n g s
so
The
to
poorest
in
concerned;
families,
provision
wife,
other
are
(some
principle,
or
treatment
number o f
earnings),
tapering
30s.
benefit
here
add
to
week m i g h t
all
To
the
be expected
&r others.
a large
so
£2 p e r
preference
cases
deficient
of
to
Assessment
-
of
from
few
pressure
wife's
up
of
kind
since
160,000
of
supplementary
in
a £2 d i s r e g a r d
On t h e
a disregard
effects
category
the
effect
principle
different
encourage
by
but
general
and
mentioned
up t o
£2 p e r
the
there
income.
benefit
especially
of
on
purposes
be
as
war pensions
disregard
as
shown
2 is
above
the
departure
be
to
give
qualifying
from
defensible.
income-test
of
benefit
would
(or
single
parent)
earnings.
(as
should
­
A war pension
deficient
account
particular
different
a different
Operation
in
necessarily
if
above
normal
because
not
of
beneficiaries
allowance
o v e r and
-o.
income
of
kinds
housing
the
made e l i g i b l e
limit,
field
would
-
certain
could
concession might
the
of
for
"disregards",
it
inexpensive
that
coat
benefit
as d e f e n s i b l e
disabled,
the
no o t h e r
and
of
afforded.
be
benefits,
earnings
however,
supplementary
would
enlarge
part-time
context,
are i n
There
Since
under
part-time
earnings
earnings,
using
therefore
need
current
are
past
to
earnings
be
as. t o
size
benefits
earnings
on account
of
they
supplemented)
present
adjusted
on h a l f - y e a r l y
fluctuate
supplementary
being
and
be based
on
as
of
family,
would
statements
rent
be
taken
practice
the b a s i s
a guide;
fluctuating
and
of
into
where
"normal"
benefit
would
earnings
only w h e r e
there
verification
Iallowance
local
book,
(in
Rent
7.
would
office
home o r
to b e
either
be
the
the
required,
case
in
of
by
and
This
providing
by
consequence
of
the
that
supplementary
benefits
or
(2)
by
that
rebates
therefore,
rent
Either
course
and L o c a l
of r e n t
8.
of
9.
would
or
rates
Payment
months'
Reviews
six months
with
increase.
to t a k e
of
a further
verification),
a rent
of
account
The
of
sickness
unemployment
Social
at
a visit
from
and
to
the
the
the
employer.
would
rates
rent
and
and
payable
need
payable
rate
as
by
by
are
to
in
the
Local
provision
Act
in
rebates
regards
rates
that
legislative
Security
and
respect
and
of
what
has
supplementary
rebates)?
housing
ignored
allowance
and
rates
by
is
have
Local
to
meet
been
the
rent
afforded
Authority
in
and
affording
rebates.
working
and
to
arrangements
those
now
in
supplementary
benefit
would
for
weekly
the
benefit
encashment
necessary
adjustment
substantial
not
at
claimant
e.g.
be r e v i e w e d
changes,
change
would
the
he
of
e.g.
in
the
in
Ministry
respect
title
order-book
the
Post
take
(with
to
or
(or
after
appropriate
account
interim
a
Periods
to
Office.
place
take
the
removal
earnings.
affect
by
normally
by
would
operation
probably
would
between
benefits.
statement
significant
to
be
the
be
benefit
job l e a d i n g
or
a
any
either
benefit
allowance,
would
rent
similar
duration,
Renewal
on
rate
rebates
unrehated
of
require
Authorities
Payment
six
and
to
of
rents
common p r a c t i c e
providing
by
family
done:­
benefits
rent
the
earnings,
Security,
of
follows
of
of
to
confirmation
housing
and
after
the
no r e b a t e
(this
in
be
Appropriate
reference
assessment
could
Ministry
evolved
by
rebates
way o f
Authority
Social
The
of
by
statements
earnings)
respect
be met
fluctuation.
e.g.
of
rebates
Authority.
(1)
abnormal
Ministry
rates
adjusted
an
rent-book
of
and
the l o c a l
was
the
only
change
of
of
of
temporary
amount
of)
housing a l l o w a n c e , s i n c e t h e b e n e f i t would be c a l c u l a t e d on "normal
earnings", i . e .
i g n o r i n g s i c k n e s s or unemployment.
Effect o f the scheme
The f o l l o w i n g
10.
(with q u a l i f y i n g
t a b l e compares the e f f e c t
o f the improved scheme
income l i m i t s as i n paragraph 4) with that' o f
the
earlier scheme (income l i m i t s as i n paragraph 2 ) : Improved
Scheme
Original
Scheme" 158,000
150,000 lumber of f a m i l i e s with incomes above current supplementary b e n e f i t standards who a l s o b e n e f i t
148,000
85,000 Sumber o f d e f i c i e n t
benefit
f a m i l i e s who Total f a m i l i e s who b e n e f i t lumber o f
benefit
c h i l d r e n i n f a m i l i e s who
306,000
235,000
1,000,000
800,000
Proportion o f d e f i c i e n t f a m i l i e s
uhose d e f i c i e n c y i s met ­
111.
( a )
in
full
( b )
in f u l l or within 10s. a week
The e f f e c t
83*
69/*
88$
82$ o f the improved scheme on income d e f i c i e n c i e s
(on
isis o f 100$ uptake) i s as f o l l o w s s -
Children
83
77
9.9s.
5
8
10 - 1 9 . 9 s .
3
5
17 NIL 20 - 3 9 . 9 s .
8
8
NIL 40 -
1
1
NIL 0
1
NIL
Proportion o f f a m i l i e s
deficiency c l e a r e d
Proportion l e f t
deficiency o f :
0 -
where
83
with
59.9s.
60 - 7 9 . 9 s .
12.
Per adult equivalent
(1 c h i l d Z f a d u l t )
Families
The r e d i s t r i b u t i v e
the f o l l o w i n g
effect
o f the improved scheme i s
t a b l e which shows how much f a m i l i e s b e n e f i t
child under t h e housing allowance scheme;
a wider margin o f
illustrated
error,
it
also i n d i c a t e s ,
the number of c h i l d r e n i n v o l v e d :
per
within
Amount o f a l l o w a n c e
per child
0
­
Families^
No.
1"
No.
Children
$
2s.
5d.
40,000
13
153,000
17
31,000
10
126,000
14
2s.
6d.
­
4s.
lid.
5s.
Od.
­
9s.
lid.
82,000
27
288,000
12
10s. O d .
­
14s.
lid.
82,000
27
189,000
21
153. O d .
­
19s.
lid.
31,000
10
63,000
7
40,000
13
81,000
9
20s.
and
over
306,000
900,000
^ A l l f i g u r e s a r e based o n d a t a from f a m i l i e s w i t h two
c h i l d r e n , but the t o t a l i n c l u d e s o n e - c h i l d
families
or
more
The
would
Cost
13.
of t h e
cost
of
the
o r d e r of £2If
improved
million
scheme
in
assuming
a full
year,
a 90$ u p t a k e
made up
as
be
followss­
£m
For
160,000
(2,000
For
"deficient"
of
148,000
Total
whom do
families
not
"surplus"
benefit)
17.0
families
6.9
cost
23.9
90$ u p t a k e
For c o m p a r i s o n ,
about
14.
the
£17 m i l l i o n
On t h e
basis
at l o c a l
offices,
and w i t h
little
100,000
cases,
the manpower
15.
rebate
for
(a)
schemes;
they a r e
of
carrying
full
on
out
the
be
of
the
£21-1 m i l l i o n
any
(b)
the
a case-load
would
savings
savings
(c)
one-child
families
assumed
to
average
scheme
was
estimated
at
year.
visiting,
helping
the
original
verification
unreasonable;
be
the
a
home
of
of
in
i.e.
The f i g u r e
allowance
cost
and
cost
21.4
whose
of
all
cost
of
at
would
be
306,000
of
500
likely
income
or
above
per
makes
rate
in
full
overestimate
of
the
deficiencies
post
10)
units.
on t h e
(d)
by
paragraph
rents
families;
mainly
160 u n i t s
staff
13
meeting
office
(see
Exchequer
not
interviews
the
paragraph
the
from
the
either
order
in
to
necessary
have
savings
no
and
rent
because
cost
been
from
of
sub-tenancies
contributed
and b o a r d e r s
from
earning
(e) u n d e r s t a t e m e n t
Nor,
on
the
Ireland,
since
other
depend
income-test.
might b e
(and
For
taken
than
does
about
on
about
rents,
the
it
allow
£f
the
family
on
purposes,
of
for
the
£20 m i l l i o n s
cost
members
million,
decisions
practical
as
in
savings
the
from
of
the
extra
for
family;
cost
of
operation
therefore,
so
survey.
Northern
administrative
precise
scheme
the
circumstances
or
in
rent
far
would
the
as
of
costs
the
effective
earnings
tend
to
be
cost
rose
less
contrariwise).
Future
16.
hand,
possible
non-dependent
income
w h i c h may b e
these
faster
of
and
adjustments
Tne
qualifying
supplementary
October
benefit
1967.
might n o t
in
sufficiently
Thus,
the
to
lift
allowance
bulk o f
cases
of
at
in
so
be
them
would
were
far
be
above
taken
into
cost.
be
adjusted
the
improved
continue
increased
could
as
correspondingly
course,
correspondingly
levels
rates
event
housing
would,
income
raised
as
the
supplementary
to
meet
the
increased
account
they w i l l
low-income
under
hereafter
be
families
incomes
benefit
in
earnings
1 1
standards,
Rent
automatically
the
policy
deficiency
cost.
as
in
the
the
great
increases
at
Annex
2
E F F E C T AND COST OP F A M I L Y TgNDOWMENT SCHEMES
ON F A M I L I E S WHOSE INCOME I S NOW D E F I C I E N T
FAM
10/-d
7 / - a
Proportion of cases
where d e f i c i e n c y
cleared.
2,
),
Number o f c a s e s where d e f i c i e n c y not c l e a r e d
51%
89 000
9
69,000
Housing
H.A.
Allowances
Improved
H A
9
0
83%
69%
h9,000
27*000
Proportion ( o f 2 or m o r e c h i l d families) l e f t with deficiency
ger
a d u l t member Ji c h i l d a £ a d u l t ) 0 -
of
9.9
10 - 1 9 . 9
3k%
21%
26%
12%
11%
5%
17%
k%
20 - 2 9 . 9
lw
Increase
£20m.
Cost
£33m.
JS17m
S20-"£22fflc
0
Annex
housing
Relative effects
a l l o w a n c e scheme
3
on F a m i l i e s of improved
C £ 2 0 b u ) and " G i v e and T a k e ' s c h e m e s
Housing
allowance
(to
G i v e and Take
n e a r e s t 250,000)
£20m
scheme
o
£33m.
scheme
Total n u m b e r o f f a m i l i e s
affected
line hiding one c h i l d
families
I under h o u s i n g a l l o w a n c e )
306,000
4,000,000
h,000,000
$umber o f f a m i l i e s b e n e f i t t i n g b y
bore t h a n 2 s . 6 d . p e r c h i l d
i( housing a l l o w a n c e ; o r p e r FAM c h i l d
and t a k e )
266,000
750,000
1,250,000
h0,000
1,000,000
750,000
None
2,250,000
2,000,000
Iglve
Piober o f f a m i l i e s b e n e f i t t i n g
lees t h a n 2 s * 6&
as above
c
Humber o f f a m i l i e s l o s i n g ( t h e
^ajority, standard r a t e payers,
" Ud, p e r w e e k p e r FAM c h i l d )
by
Annex
Financial
Effect
improved
housing
on S p e c i m e n
allowances
and take"
And " g i v e
families
of
scheme(£20m)
scheme
Give
Housing
Net
allowance
benefits
S e
So
d .
K
(£53m)
and
take
Increase
Increase
i n FAM
in Tax
d o
£
s.
d o £
S o
10
10
10
10
0
0
0
0
5
7
10
10
10
10
10
10
0
0
0
0
0
19
7
1
1 11
Married with 2
c h i l d r e n , one under
1 1 , o n e 11-15? r e n t
£3
Gross
income
a
£12
£15
£20
£25
2
3 6
0
0
6
10
5
2
None
None
None
3
1, ­
0
6
3
Married with h
c h i l d r e n , two under
11, two 11-15?
rent
£3 Gross
income a
weeks
£12
£15
£20
£25
£30
$Further
examples
0
5
3
1
None
None
None
0
9
are given
1 10
1 9
10
2
1
0
5
8
8
0
-
i n Annex
1
1
1
1
1
6
A n n e x 5.
Supplementary
"Guaranteed"
( a )
( b )
minimum
Income,
benefits
excluding
disregards,
Married couple w i t h
a g e d 5-10, one a g e d
£3 r e n t
2 c h i l d r e n , one
11-15? p a y i n g
Married couple with
a g e d 5-10, two a g e d
£3
rent
h c h i l d r e n , two
11-15? p a y i n g
j£further
examples
* i n c l u d i n g f a m i l y
payable
are given
allowances
/
i n Annex 7
of
£12 16
0*
£15 19
0*
7
K
K
0
ANNEX 6
Financial
effect
on s p e c i m e n
to
Note
The
and
tables
and p a i d
and
if
the f a m i l y
the c h i l d
subsequent
It
of
for
expected
to b e
the nearest
M
all
scheme
increased
were
what
received
would be
b y 10/-
c u t b y £h5 p e r annum f o r
all
received
per
second
week
and
the husband's
The o c c a s i o n a l
p e r week,
t h e same,
the f a c t
is
in cases
due t o
that
1d. per
earnings
are
small
where
rounding
the tax f i g u r e s
of
the
only
difference
source
in
the
the i n c r e a s e
would
the earned
income
have
all
been
be
rounded
week.
used:
indicates
under
eleven
^^25
a
n
£25 a r e g i v e n
one under
first
at present
allowance
that
tax paid
and t o
Symbols
allowance
with
the f a m i l y .
in
to
and t a k e
children.
increase
relief
the give
p a i d p e r week,
allowance
i s assumed
income
of
Tables
the family
compare
the tax a t present
families
d
the
taxpayer
(and hence
^x+50
i
n
d
( e . g . ^2+25
eleven,
child
that
i
c
a
m
with
t
e
e
a
a
and s o t h e r e
and £115 f o r
the
x child
that
n
i s a married
*
n
are
man w i t h
allowances
one and two c h i l d
e
r
e
a
r
e
child
second).
of
children
£115).
supplements
two c h i l d r e n ,
allowances
x
of
one o v e r
£1hO f o r
of
and
the
Present
PAM
Present
Tax
£
£
1+25
s.
d.
s.
d.
New
PAM
£
New
Tax
s.
d.
£
s.
d.
Increase
i n PAM
Increase
i n Tax
£
£ s.
s.
d.
Net
Effect
d.
£
s.
d.
8
0
18
0
10
0
+
10
0
8
0
18 0
10
0
*
10
0
18 0
1
18
0
1
0
0
*
1
0
0
18
0
1
18
0
1
0
0
+ 1
0
0
18
0
1
18
0
1
0
0
+ 1
0
0
f
1
8
0
2 18
0
1
10
0
*
1 10
0
1
8 0
2 18
0
1
10
0
+ 1 10
0
1+25
1
8 0
2 18
0
1
10
0
t
0
5
5+25
3+50
1+50
1 10
Present
PAM
Present
Tax
£ s.
£
k
"2+25
ly,
d.
s.
d.
8 0
k
8 0
2 1
New
FAM
£
0
s.
New
Tax
d.
£
s.
d.
Increase
i n FAM
Increase
i n Tax
£
£ s.
s.
d.
Net
Effect
d.
£
s.
d.
180
9 8
100
5 8
+
18 0
7 1
10 0
5 0
+
50
+
13U
180
­
1 1 8 0
6 8
1 0 0
6 8
180
­
1
U 9
1 0 0
k
"
1 1 8 0
2 1 0 1
1 8 0
­
2 1 8 0
U 6
110
5
1 8 0
­
2 1 8 0
2 7
110
w o
1 8 0
­
2 1 8 0
kk
3
\l
^3+50
p
w
lll
1
8
0
18
0
7
1
0 0
+ 1 5 3
9
210
+
0
U 6
*
0
2 7
10 0
7
172
1
56
+ 1 7 5
+1
9 5
Present
FAM
New
FAM
d. £
s.
Co £
8
0
1
5
6
18
0
8
0
1
2
7
18
18
0
14
6
18
0
11
18
0
1
8
1
1
H
Increase
in
FAM
New
Tax
s.
£
W
Present
Tax
8 . d. £
s.
d.
£
Increase
in
Tax
\
Net
G f f Q C t
is. d, £
8 . d.
£
8.
d.
1 13 10
10 0
8
h
4-
1
8
0
1 10
1
10 0
7
6
2
6
1 18
0
1
9
7
1
0 0
15
1
a 11
8
1 18
0
1
6
9
1
0 0
15
1
k
8
9
1 18
0
1
3 10
1
0 0
15
1
0
k
11
2 18
0
1
6
2
1
10 0
1
1
3
8
0
3
0
2 18
0
1
3
3
1
10 0
1
0
3
8
0
1
1
2 18
0
1
0
5
1
10 0
19
k
4-
11
4 11
8
9
4-
9
9
4.
10
8
Present
FAM
£
Present
Tax
£.
s.
New
Tax
d
d. £
s.
8
0
2
15 6
18 0
3
5 10
10
8
0
2
11 7
18 0
3
1 10
10
0
18
0
2
0 5
1
18 0
3
1
3
1
0
0
3+25
18
0
1
16 6
1
18 0 2
17
3
1
0
0
3+50
18
0
1
12 6
1
18 0
2 13
U
1 0
0
0
£ s.
Increase Increase
i n FAM
i n Tax
s.
t25
d.
Hen
FAM
d. £ s .
d.
£ s. d.
0
10
k
10
3
1
Net
effect
' £ s.
"
d.
k
3
0 10
-
10
9
-
9
1
0 10
-
10
1
0
k
1 8
0
1
7 0
2
18 0
2 16
6
1 10
0
1
9
6
*
6
1*25
1
8
0
1
hi
2
18 0
2 12
6
1 10
0
1
8
5
* 1
7
!R50
1
8
0
1
1 2
2
15 0
7
k
-s- 2
8
i
2
8
6
1
10 0 1
Present
PAM
£
s
d
Present
Tax
£
s
d
H
8
h+25
8 0 1 + 3 7
2
U
3
k
0
New
PAM
£
s
7
7
New
Tax
d
£
8
Increase Increase
in
in
PAM
Tax
d
£
s
d
0
18
0
U 17 11
10
18
0
1+14
1 0 0
0
£
s
5
Net
effect
d £
8
d
10
k -
k
10
5-
5
I 8 0 3 1 2 8 l l 8 0 h . 1 3 k
1
0 0 1
0 8 -
8
H^
2 5
1 8 0 3 8 8 1 1 8 0 U 9 U
1
0 0 1
0 8 -
8
H^
riQ
1 8 0 3 4 9 1 1 8 0 1 + 5 U
1
0 0
0 7 -
7
8
1
V25
V 5 0
1
8
1
0
0
8
2
0
2 17
7
2 18
3
2
l
1
2
9
8
8
2
8
18
0
0
k
1+
8
k
8
0 1 + 0 8
8
1 10
1 10
1 10
1
0
1 11
1 -
0 1
11
0 - 1
0 1
11
0 - 1
1
1
0
0
Present
Present
FAM
Tax
a.
£ 8 .
£ s.
New
New
FAM
d.
£ s.
Increase
Increase
in
in
FAM
Tax
Tax
a.
£ 8 .
a.
£ 8 .
a.
£ s.
Net
effect
d.
£ 8 .
a.
" ­
M2
8
0
7 11 10
18
0
8
2
2
10
0
10
k
M2+25
8
0
7
7 10
18
0
7 18
2
10
0
10
k
M3
18
0
6 16
9
1 18
0
7 17
6
1
0
0
1
0
9
M3+25
18
0
6 12
9
1 18
0
7 13
7
1
0
0
1
0 10
M3+5O
18
0
6
8 10
1 18
0
7
9
7
1
0
0
1
0
9
1
8
0
6
1
9
2 18
0
7 12
9
1 10
0
1 11
0
1
0
1
8
0
5 17
9
2 18
0
7
8
9
1 10
0
1 11
0
1
0
1
8
0
5 13
9
2 18
0
7
h
9
1 10
0
1 11
0
1
0
Mu+50
h
k
-
9
10
9
mm
A
Supplementary
v
n
e
x
7 ,
Benefits
\ 1
(2) Svmbols
n
'
M
M
1
M
2
£ s . d.
£ s.
6 13 0
6 13 0
1
8 0
1
-
1 15 0
0 0
3
£ s.
d.
\
3
M
£ s.
d.
h
£ 8 .
d.
d
(3)
Requirements
Husband a n d
Children
'
wife
6 13 0
8 0
1
8 0
2 16 0
3 10 0
5
5 0
3 10 0
0 0
3
0 0
3
12 16 0
1U 11 0
16
6 0
8 0
18 o
1
8 0
a 0
13 13 0
(h)
5-11
11 - 16 Rent a n d R a t e s
Total
6 13 0
6 13 0
(5)
requirements
1 0
11
8 0
1
0 0
3
0 0
15 19 0
(6)
Resources^
'
Deduct F a m i l y
Allowances
Supplementary
Benefit Payable
1 0
11
12
1
1U 18 0
8 0
14 11 0
Notes
(1)
(2)
( 3 )
'(k)
(5)
The a b o v e t a b l e shows t h e a m o u n t s o f s u p p l e m e n t a r y b e n e f i t
payable a t current ( M i n i s t r y of S o c i a l Security A c t ) r a t e s
families of different
size. The s y m b o l s i n d i c a t e
and 2 c h i l d r e n ) .
Requirements are
up t o w h i c h e a c h
benefit paid. the
size
the l e v e l
family is
of
the
family
(e.g.
U
to
= man,
0
wife
*
of
to
income ( i n c l u d i n g r e n t and r a t e s )
be brought by supplementary C h i l d r e n ^ a d d i t i o n s v a r y w i t h the
t a b l e i t has b e e n assumed t h a t : ­
age
of
the
child.
For
For the f i r s t f o u r examples, the f i r s t c h i l d i s aged
b e t w e e n 5 a n d 11 a n d s u b s e q u e n t c h i l d r e n b e t w e e n
11 a n d 1 6 .
( 2 )
For the
between
l a s t example,
5 a n d 11, a n d
the
the
f i r s t two c h i l d r e n
others are between
a s s u m e d t o b e £3 p e r w e e k
of course, vary according
this
( 1 )
R e n t and r a t e s a r e
Benefit paid w i l l ,
rates paid. are aged
11 a n d 1 6 .
throughout. to a c t u a l rent
and
(6)
R e s o u r c e s : i t i s a s s u m e d t h a t t h e f a m i l y h a s no o t h e r
a p a r t from f a m i l y a l l o w a n c e s , which a r e deducted from
ments t o a s s e s s supplementary b e n e f i t p a y a b l e ; f a m i l y
are payable separately in a d d i t i o n to supplementary
b
income
require­
allowances
enefit.