§ Mr. Ralph Howellasked the Chancellor of the Exchequer if he is aware that a man with a wife and three children under 11 years of age, whose weekly wage is £30 per week, has £3.35 more spending power in the first weeks of unemployment or sickness than when at work; and if he will take steps to rectify this situation prior to the introduction of a tax credit system, in view of the fact that this system can only come into operation in four or five years' time at the earliest.
§ Mr. NottI refer the hon. Member to the answer given to a similar Question by him on 24th January 1973.—[Vol. 849, c.192.]
§ Mr. Ralph Howellasked the Chancellor of the Exchequer (1) if he is aware that a man with a wife and three children under 11 years of age, whose weekly wage is £25 per week, receives a net income of £24.34 per week when at work and can receive a net income of £29.65 in the first weeks of unemployment or sickness; and if he will take steps to rectify this situation prior to the introduction of a tax credit system, in view of the fact that this system can only come into operation in four or five years time at the earliest:
(2) if he is aware that a man with a wife and one child under 11 years of age, whose weekly wage is £25.00 per week, receives a net income of £21.34 when at work and can receive £24.22 in the first weeks of unemployment or sickness; and what steps he intends to take to rectify this situation prior to the introduction of a tax credit system, in view of the fact that this system could only come into operation in four or five years time, at the earliest.
§ Mr. NottI refer the hon. Member to the answer given to a similar Question by him on 24th January 1973.
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§ Mr. Ralph Howellasked the Chancellor of the Exchequer if he will tabulate the total net wekly income of a man with a wife and no children, 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
Weekly wage A Net income B Net income Number of weeks when take-home pay when out of work exceeds take-home pay at work £ £ £ 15 13.72 12.75 Nil 20 16.92 19.33 11 25 20.14 21.12 19 30 23.45 22.40 Nil 35 26.66 22.45 Nil Notes:
Column A shows the man's net weekly income when at work for week 40 of the tax year.
Column B shows his total income from unemployment benefit (including earnings-related supplement) and (where appropriate) tax refunds for week 42 on the assumption that that is his third consecutive week of unemployment.
The figures take account of National Insurance (including graduated pension) contributions but they do not include any supplementary benefit that might be receivable during unemployment.