§ Sir B. Rhys Williamsasked the Secretary of State for Social Services if she 590W will publish tables showing the effect of raising family allowances, respectively, to £1 and £2 weekly for every child, with and without accompanying withdrawal of child tax allowances, for families over a standard range of incomes, showing the effects of excluding family allowances from calculations of eligibility for the other principal social benefits for families.
§ Mr. Robert C. Brown, pursuant to his reply [OFFICIAL REPORT, 24th May 1974; Vol 874, c. 336], circulated the following information:
In all cases the proposed family allowance was not included in the calculations of eligibility for the other principal social benefits.
CASE 1: £1 FAM per child, present tax scheme, claw back £52 per child. Loss/Gain in net income Two-parent families Single-parent families Family earnings £ 1 child 2 children 4 children 1 child 2 children 4 children 20 … … … 0.75 1.67 3.00 0.34 1.59 2.99 25 … … … 0'34 0.94 2.99 0.34 0,95 2.98 30 … … … 0.34 1.53 2.23 0.34 1.22 2.22 35 … … … 0.34 0.62 1.71 0.34 0.62 1.07 40 … … … 0.34 0.41 2.28 0.34 0.41 2.27 50 … … … 0.34 0.41 0.40 0.34 0.41 0.40 60 … … … 0.34 0.41 0.40 0.34 0.41 0.40 80 … … … 0.34 0.41 0.41 0.34 0.41 0.40 100 … … … 0.34 0.41 0.40 0.34 0.41 0.40 150 … … … 0.04 0.09 0.09 0.04 0.09 0.09 200 … … … -0.16 -0.12 -0.12 -0.16 -0.12 -0.11
CASE 2:£1 FAM per child, no child tax allowance, FAM tax free. Loss/Gain in net income Two-parent families Single-parent families Family earnings £ 1 child 2 children 4 children 1 child 2 children 4 children 20 … … … -0.11 0.56 1.89 -0.52 -0.14 1.18 25 … … … -0.52 -0.79 0.23 -0.52 -0.78 -0.47 30 … … … -0.52 -0.20 -1.22 -0.52 -0.51 -1.23 35 … … … -0.52 -0.20 -1.74 -0.52 -0.51 -2.38 40 … … … -0.52 -1.32 -0.54 -0.52 -1.32 -1.18 50 … … … -0.52 -1.32 -1.84 -0.52 -1.32 -1.85 60 … … … -0.52 -1.32 -3.05 -0.52 -1.32 -3.05 80 … … … -0.52 -1.32 -3.04 -0.52 -1.32 -3.05 100 … … … -0.52 -1.32 -3.05 -0.52 -1.32 -3.05 150 … … … -1.21 -2.42 -4.93 -1.26 -2.46 -4.97 200 … … … -1.67 -3.15 -6.18 -1.67 -3.15 -6.18 591W
CASE 3: £2 FAM per child, present tax scheme, claw back £52 per child. Loss/Gain in net income Two-parent families Single-parent families Family earnings £ 1 child 2 children 4 children 1 child 2 children 4 children 20 … … … 1.42 3.63 7.00 1.01 2.93 6.99 21 … … … 1.01 2.28 6.36 1.01 2.29 5.66 30 … … … 1.01 2.87 4.91 1.01 2.56 4.90 35 … … … 1.01 1.96 4.39 1.01 2.56 3.75 40 … … … 1.01 1.75 5.59 1.01 1.75 4.95 50 … … … 1.01 1.75 3.08 1.01 1.75 3.08 60 … … … 1.01 1.75 3.08 1.01 1.75 3.08 80 … … … 1.01 1.75 309 1.01 1.75 3.08 100 … … … 1.01 1.75 3.08 1.01 1.75 3.08 150 … … … 0.56 1.13 2.17 0.56 1.13 2.17 200 … … … 0.26 0.72 1.56 0.26 0.72 1.57
CASE 4: £2 FAM per child, no child tax allowance, FAM tax free. Loss/Gain in net income Two-parent families Single-parent families Family earnings £ 1 child 2 children 4 children 1 child 2 children 4 children 20 … … … 0.89 2.56 5.89 0.48 1.86 5.18 25 … … … 0.48 1.21 4.23 0.48 1.22 3.53 30 … … … 0.48 1.80 2.78 0.48 1.49 2.77 35 … … … 0.48 1.80 2.26 0..48 1.49 1.62 40 … … … 0.48 0.68 3.46 0.48 0.68 2.82 50 … … … 0.48 0.68 2.16 0.48 0.68 2.15 60 … … … 0.48 0.68 0.95 0.48 0.68 0.95 80 … … … 0.48 0.68 0.96 0.48 0.68 0.95 100 … … … 0.48 0.68 0.95 0.48 0.68 0.95 150 … … … -0.21 -0.42 -0.93 -0.26 -0.46 -0.97 200 … … … -0.67 -1.15 -2.18 -0.67 -1.15 -2.18 Assumptions made:
Rent and Rates Rent £ Rates £ Two parents, 1 child … 3.55 1.36 Two parents, 2 children … 3.57 1.37 Two parents, 4 children … 4.28 1.64 One parent, 1 child … 3.15 1.21 One parent, 2 children … 3.55 1.36 One parent, 4 children … 3.57 1.37 Work expenses—£0.65 NOTES: (1)The principal social benefits involved are family income supplement, rent and rates rebates, free school meals and free welfare milk. (2)The ages of the children are taken as: 1-child family, age 3; 2-children family, ages 3 and 8; 4-children family, ages 2, 4, 6 and 8. (3)In all cases it is assumed that the additional personal tax allowance for single parents continues.