HC Deb 06 May 1975 vol 891 cc406-9W
Mr. Mike Thomas

asked the Secretary of State for Social Services (1) if she will list in the Official Report the gains in income of (a) a one child family, (b) a two child family, and (c) a four child family, earning (1) £20 a week, (2) £30 a week, (3) £40 a week, and (4) £60 a week, with a family allowance increase of £3.60 per child per week, including the first child, assuming that the family allowance is taxable and clawback of child tax allowances; and if she will give net income figures for (i) those families claiming family income supplement, free school meals, rent and rate rebates, and (ii) families not claiming these benefits;

(2) if she will list in the Official Report the gains in income of (a) a one child family, (b) a two child family, and (c) a four child family, earning (1) £20 a week, (2) £30 a week, (3) £40 a week, and (4) £60 a week, with a family allowance of £3.60 per child per week, including the first child, assuming tax free family allowances and child tax allowances reduced to half their present rates;

SCHEME I: Family Allowances £.60 per child and taxable; clawback £52 per annum per child.
(i) Benefits claimed (ii) benefits not claimed
Gross earnings Net disposable income Gain Net disposable income Gain
Married couple with 20 21.77† 1.16 15.03 3.38
one child 30 24.23 1.42 20.98 2.34
40 27.88 1.51 26.93 2.34
60 38.83 2.34 38.83 2.34
Married couple with 20 25.30†* 2.35 18.56 5.49
two children 30 27.92 2.06—* 24.51 3.71
40 31.57 2.40 30.46 3.71
60 42.36 3.71 42.36 3.71
Married couple with 20 32.23†*** 4.78 24.71 9.90
four children 30 35.50* 3.75—†** 31.13 6.87
40 39.15 4.15—** 37.08 6.43
60 48.98 6.43 48.98 6.43

SCHEME II: Family Allowances £3.60 per child and tax free; child tax allowances reduced to their present rates.
(i) Benefits claimed (ii)Benefits not claimed
Gross earnings Net disposable income Gain Net disposable income Gain
Married couple with 20 21.99† 1.38 15.25 3.60
one child 30 24.69 1.88 21.44 2.80
40 28.34 1.97 27.39 2.80
60 39.29 2.80 39.29 2.80
Married couple with 20 25.51†* 2.56 18.77 5.70
two children 30 29.17 3.31—* 25.76 4.96
40 32.82 3.65 31.71 4.96
60 43.61 4.96 43.61 4.96
Married couple with 20 32.23†*** 4.78 24.71 9.90
four children 30 38.03 6.28—†*** 33.66 9.40
40 41.68 6.68—** 39.61 8.96
60 51.51 8.96 51.51 8.96

(3) if she will list in the Official Report the gains in income of (a) a one child family, (b) a two child family, and (c) a four child family, earning (1) £20 a week, (2) £30 a week, (3) £40 a week, and (4) £60 a week, with a family allowance of £3.60 per child per week, including the first child, assuming that the family allowance is taxable and child tax allowances are simultaneously abolished; and if she will give net income figures for (i) those families claiming income supplement, free school meals, rent and rate rebates and (ii) families not claiming these benefits.

Mr. O'Malley,

pursuant to his reply [Official Report, 26th March 1975; Vol. 889, c. 97–8], circulated the following information:

For the family types specified earning the amounts stated the effect of increasing family allowance to £3.60 for each child is shown in the tables below.

SCHEME III: Family Allowances £3.60 per child and taxable; child tax allowances simultaneously abolished.
(i)Benefits claimed (ii) Benefits not claimed
Gross earnings Net disposable income Gain Net disposable income Gain
Married couple with 20 20.16† -0.45 13.42 1.77
one child 30 22.62 -0.19 19.37 0.73
40 26.27 -0.10 25.32 0.73
60 37.22 -0.73 37.22 0.73
Married couple with 20 22.42†* -0.53 15.68 2.61
two children 30 25.04†* -0.82+† 21.63 0.83
40 28.69 -0.48 27.58 0.83
60 39.48 0.83 39.48 0.83
Married couple with 20 26.62†*** -0.83 19.10 4.29
four children 30 29.42†*** -2.33 25.05 0.79
40 33.07†*** -1.93+†* 31.00 0.35
60 42.90 0.35 42.90 0.35
Notes:
1. Net disposable income is gross earnings plus family allowances less income tax, national insurance contributions, rent, rates and work expenses; plus the following benefits, where claimed: family income supplement (FIS), rent rebate (or rent allowance) and rate rebate.
2. In the columns headed "Benefits claimed"-
(i) additional entitlement to free welfare milk or free school meals is shown in the "Net disposable income" column thus:
† free welfare milk for one child (value 42p a week);
* free school meals for one child (value 75p a week during school term);
(ii) the same symbols are used in the "Gain" column to indicate an offsetting loss or gain in entitlement to free welfare milk and/or free school meals.
3. The rates of income tax and tax allowances are those operative for 1975–76.
4. The rates of benefits and national insurance contributions are those in force at mid-April 1975.
5. The ages of children in the families have been taken as:
1 child family-age 3.
2 children family-age 3 and 8
4 children family-age 3, 8, 11 and 16.
6. Rent and rates are taken as:
Rent Rates
£ £
1child family 4.73 1.77
2 children family 4.80 1.78
4 children family 5.71 2.13
7. Work expenses are taken as £0.75 per week.

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