§ Mr. Grist
asked the Chancellor of the Exchequer what effect, after tax, on the cost of living the removal of consumer food subsidies will have for a married couple, the husband being the sole income earner, on average industrial earnings, with one, two and three children, respectively, under the age of 12 years.
§ Mr. Denzil Davies
It has not been decided how fast food subsidies will be phased out, but if they were abolished immediately the effect would be to increase the general index of retail prices by about one per cent. Separate price indices for different family types are not available. However, National Food Survey household consumption estimates suggest that consumer food subsidies reduce the cost of living for the average family with one child by 57p per week, for the two-child family by 70p per week and for the three-child family by 83p per week.