DOCUMENT-IS T H E 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
?
GOVERNMENT)
COPY NO. V U
nth
July, 1967
CABINET
FAMILY
ENDOWMENT
Note by the M i n i s t e r without P o r t f o l i o
A t their m e e t i n g on 13th July, 1967 ( C C ( 6 7 ) 48th C o n c l u s i o n s ,
Minute 3 ) , the Cabinet invited m e , in consultation with the M i n i s t e r s
principally c o n c e r n e d , to p r e p a r e a draft statement on f a m i l y
endowment, presenting an i n c r e a s e of f a m i l y a l l o w a n c e s on the lines
suggested by the C h a n c e l l o r of the E x c h e q u e r in p a r a g r a p h s 13 and 14 of
his m e m o r a n d u m C ( 6 7 ) 128, in conjunction with some e x t e n s i o n of the
present a r r a n g e m e n t s f o r the r e m i s s i o n of c h a r g e s f o r school m e a l s
and w e l f a r e m i l k , and including, f o r c o n s i d e r a t i o n , a r e f e r e n c e to further
study of a housing a l l o w a n c e .
2.
The attached draft statement has b e e n p r e p a r e d a c c o r d i n g l y .
It assumes p o l i c y d e c i s i o n s on the f o l l o w i n g p o i n t s , on which t h e r e
was g e n e r a l a g r e e m e n t among the M i n i s t e r s c o n c e r n e d s ­
(a)
That f a m i l y a l l o w a n c e s should be i n c r e a s e d f r o m t h e end of
October by 5 s. a w e e k f o r fourth and subsequent c h i l d r e n of
families.
(b)
That the i m p r o v e m e n t in f a m i l y a l l o w a n c e s f r o m A p r i l , 1968,
subsuming as it would the i n c r e a s e m a d e in O c t o b e r , should
take the f o r m of a u n i f o r m i n c r e a s e f o r e a c h c h i l d , and
should not, for e x a m p l e , v a r y with the a g e of the child and the
s i z e of the f a m i l y , or take the f o r m of an i n c r e a s e in the upper
age l i m i t of e n t i t l e m e n t .
(c)
That the c h a r g e f o r school m e a l s should be i n c r e a s e d f r o m next
A p r i l f r o m I s . to I s . 6d. , and the p r i c e of w e l f a r e m i l k should
be i n c r e a s e d f r o m 4d, t o 6d. a pint; that the r e m i s s i o n
a r r a n g e m e n t s f o r s c h o o l m e a l s should be extended t o a l l fourth
and subsequent dependent c h i l d r e n ; and that the a r r a n g e m e n t s
for f r e e w e l f a r e m i l k tokens should be e x t e n d e d t o a l l third
and subsequent c h i l d r e n (an expectant m o t h e r counting as a
child f o r this p u r p o s e ) .
(d)
That s p e c i f i c r e f e r e n c e should be m a d e to h e l p f o r the educationally
" d e p r i v e d a r e a s " , r e f e r r e d t o in the m e m o r a n d u m of the
S e c r e t a r y of State f o r Education ( C ( 6 7 ) 9 ) .
(e)
That r e f e r e n c e should be made to further study of the housing
allowance type of s c h e m e .
3,
In r e s p e c t of the i n c r e a s e i n f a m i l y a l l o w a n c e s f r o m A p r i l , 1968,
three a l t e r n a t i v e i n c r e a s e s in r a t e s a r e g i v e n in the statement - 5 s . ,
7s., and 10s.
W h i l e there w a s s o m e support among the M i n i s t e r s
concerned f o r i n c r e a s e s of 5 s . and 1 0 s . , the preponderating v i e w
favoured an i n c r e a s e of 7 s .
\C.G.W.
70, Whitehall, S . W . 1 .
17th July, 1967
-2­
DRAFT STATEMENT
ON F A M L Y
ENDOWMENT
The p r o b l e m of f a m i l y p o v e r t y is c o m p l e x and t h e r e i s no s i m p l e
or single solution to it;
nor can p o v e r t y be r e m o v e d overnight,,
Our
attack on it must t h e r e f o r e have many aspects and include l o n g - t e r m
as well as s h o r t - t e r m p l a n s .
2
0
Our intentions a r e as f o l l o w s :
F i r s t , we intend to i n c r e a s e by 5s. the f a m i l y allowance for
fourth and subsequent c h i l d r e n at the same t i m e as w e put up National
Insurance and Supplementary Benefits at the end of October this y e a r
at a cost of about £10 m i l l i o n net in a full y e a r .
families that a r e m o s t in n e e d .
It i s the l a r g e s t
T h e r e a r e m o r e than 1 m i l l i o n fourth
and subsequent c h i l d r e n in 609, 000 f a m i l i e s .
3.
In A p r i l , 1968 , w e w i l l i n c r e a s e the f a m i l y a l l o w a n c e for second
and third c h i l d r e n ( t h e r e a r e m o r e than 4^ m i l l i o n ) by /JJs^/,
ljp sJ*
"^"
s
e
c o s
fjjijj
t
t , net of tax and other a d j u s t m e n t s , w i l l in a full
year be about /.£62 million/, /£87 million/, ££121 million/, including
the i n t e r i m i n c r e a s e I have mentioned.
4,
Such a sum could be r a i s e d in a number of w a y s .
But it must
be left to my r t . hon. F r i e n d the Chancellor of the E x c h e q u e r to p r o p o s e ,
at the right t i m e and in the light of a l l the r e l e v a n t c i r c u m s t a n c e s , the
method or methods by which the n e c e s s a r y r e v e n u e could be r a i s e d .
Clearly an examination of i n c o m e tax child a l l o w a n c e s with
a
view
to raising s o m e p a r t of the money needed would s e e m l o g i c a l in this
context.
5.
We a r e much c o n c e r n e d that those entitled to school m e a l s and
welfare m i l k f r e e or at r e d u c e d p r i c e s often do not take up their
entitlement.
W e shall o r g a n i s e publicity campaigns to see that
people a r e quite c l e a r what they can get and that they get i t .
We
are r e v i e w i n g the a r r a n g e m e n t s so as to make i t e a s y f o r them t o
exercise their r i g h t s without e m b a r r a s s m e n t .
W e shall i m p r o v e our
provision f o r l a r g e f a m i l i e s by extending f r e e school m e a l s to the fourth and
subsequent c h i l d r e n in a f a m i l y , and f r e e v/elf a r e m i l k to the t h i r d and s u b ­
sequent c h i l d r e n under f i v e (an expectant mother counting f o r this purpose as
achild under f i v e )
0
This w i l l be i n b o t h c a s e s r e g a r d l e s s of i n c o m e , and w i l l
take effect by next A p r i l .
F o r those who do not qualify for m e a l s or
welfare m i l k f r e e o r at r e d u c e d p r i c e s , we f e e l bound to i n c r e a s e the
charge for both.
The p r e s e n t p r i c e s w a r e f i x e d in 1957 and the c o s t
has since g r e a t l y i n c r e a s e d .
Continuation of the p r e s e n t l e v e l of c h a r g e
-3-
S EC RET
involves a c l a i m on our r e s o u r c e s that can no l o n g e r be j u s t i f i e d .
We
intend next A p r i l t h e r e f o r e to i n c r e a s e the p r i c e of school m e a l s by 6d
and of w e l f a r e r r i l k by 2d
0
a pint.
a
T h e r e would s t i l l be a substantial
element of subsidy in these p r i c e s .
6.
We r e c o g n i s e that the m e a s u r e s we p r o p o s e cannot alone s o l v e
the c o m p l e x p r o b l e m of f a m i l y p o v e r t y .
Some of the f a c t o r s which
cause hardship v a r y w i d e l y between one f a m i l y and another v/ith s i m i l a r
incomes.
The m o s t urgent needs a r e to t a c k l e the c o s t of housing and
the p o v e r t y of the e n v i r o n m e n t in which s o m e c h i l d r e n g r o w up,
7,
R.ents and r a t e s c a n b e a r h a r d l y and v e r y v a r i a b l y on f a m i l i e s
of modest m e a n s .
Our r a t e r e b a t e scheme and extension of l o c a l r e n t
rebate s c h e m e s , which apply to the p e r s o n as distinct f r o m the house,
are of g r e a t and i n c r e a s i n g help to the needy, but this is a continuing
problem and w e a r e i n v e s t i g a t i n g further w a y s of extending help of this
kind to people in p r i v a t e as w e l l as in council houses.
W e shall open
discussions with l o c a l authorities and other r e p r e s e n t a t i v e b o d i e s and
hope to bring f o r w a r d further p r o p o s a l s as soon as p o s s i b l e .
/8.
But we must a l s o be c o n c e r n e d with the p h y s i c a l e n v i r o n m e n t ,
the g e o g r a p h i c a l black spots of p o v e r t y and d e p r i v a t i o n .
The r e l i e f
of poverty i s not s o l e l y a m a t t e r of cash benefits to individuals;
also a matter of s o c i a l c a p i t a l .
it i s
It was this which the P l o w d e n P.eport
had in mind when it spoke of educational p r i o r i t y a r e a s .
The G o v e r n m e n t
propose to make a v a i l a b l e a school building a l l o c a t i o n of £8 m i l l i o n a
year for t h e s e a r e a s , on top of the existing building p r o g r a m m e s . /
9.
In the context of t h e s e plans we put f o r w a r d our p r o p o s a l for
immediate i n c r e a s e s in f a m i l y a l l o w a n c e s .