§ Mr. Ralph Howell
asked the Chancellor of the Exchequer if he will show the amount of weekly tax refunds when unemployed, and the net weekly income if all State benefits were taxable, in respect of a man with a wife and two children under 11 years of age, assuming a weekly wage of £15, £20, £25, £30 and £35, respectively, and that the previous year's pay was at the same rates allowing for relevant tax repayments and any welfare benefits in the following circumstances; for a week's work after 39 weeks at the appropriate rate and when unemployed after 39 weeks' employment and when qualifying for earnings-related supplement.
§ Mr. Nott
The figures are:
Weekly wage A B C £ £ £ £ 15 … … 17.82 18.20 Nil 20 … … 20.07 19.35 Nil 25 … … 22.89 20.90 0.15 30 … … 26.15 21.95 Nil 35 … … 29.36 21.95 Nil
Column A shows the man's net weekly income when at work for week 40 of the tax year.118W
Column B shows the net weekly income derived from unemployment benefit—including earnings-related supplement—and where appropriate assumed tax refunds or tax deductions, if benefits were taxable income, for week 42 of the tax year on the assumption that that would be his third consecutive week of employment.
Column C shows the tax refund, if any, that would be due for the same week; if benefits were taxable at the wage levels of £30 and £35, tax of 15p would be deductible if PAYE applied to the benefits.
The figures take account of the family allowances and the national insurance—including graduated pension—contributions but they do not include any supplementary benefit that might be receivable during unemployment.
Family income supplements have been taken into account in both column A and column B because a man who becomes entiled to FIS will receive it for the period of the award regardless of whether he becames unemployed during that period.