9.5
The scale of assistance introduced in April 1971 represented a considerable improvement but did not make proper allowance for expenditure on items other than food. It was therefore revised in 1972 to take account of non-food expenditure; items such as rent, which were provided for separately in the assessment of assistance, were excluded from this calculation. As a result of this revision, the real value of the scale of assistance was increased by about 50% in April 1972. So while there are always differences of view about the level at which income support, such as that provided by the public assistance scheme, is set, the Government believes that the level of income provided by the scale of assistance implemented in 1972 is generally satisfactory and does not propose any alteration to it.
9.6
The Government accepts the need to ensure that the purchasing power of public assistance allowances is not eroded by inflation. Accordingly, the scale of assistance is kept under regular review and increased from time to time to maintain its real value. After the improved scale of assistance was introduced in 1972, the review was based on a public assistance index constructed from the modified Consumer Price Index. This was not entirely satisfactory, however, since the weightings used had been artificially constructed and so did not necessarily reflect the actual expenditure pattern of families in receipt of assistance (See Table 1 below). Therefore, a survey of the expenditure pattern of families receiving assistance was carried out in 1974. The results of this were used to construct a new weighting system, for measuring the increase of prices for the public assistance index. The system in Table 2 below was introduced in September 1976.
Table 1
First public assistance index weightings (1972-76)
Section
Foodstuffs
Fuel & light
Weightings
74 %
5.6%
Clothing & footwear
9.2%
Durable goods
1.3%
Miscellaneous goods
5.4%
Transport
0.9%
Services
2.6%
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