HC Deb 10 November 1975 vol 899 cc540-6W
Mr. Ralph Howell

asked the Secretary of State for Social Services if she will publish a table on the same basic assumptions as in the Written Reply to the hon. Member for Norfolk, North on 10th June 1975, c. 156–64, comparing net weekly spending power for a week's work after 39 weeks and when unemployed after 39 weeks in the tax year, covering all family circumstances in the previous reply and earnings at £5 intervals between £25 and £70 a week, but basing earnings related benefit on the Department of Employment earnings index over the past 21 months, including a second section for the unemployed showing notional details of net weekly spending power assuming that unemployment benefit were taxable, and using the new rates of benefits operative from November.

Mr. O'Malley

For the reasons given in my reply to the hon. Member's earlier Question on 16th July—[Vol. 895, c.499–500]—I am not satisfied that it would be justifiable to incur the very considerable expenditure of staff time which would be involved in undertaking calculations based on the assumption that unemployment benefit were taxable. The tables below set out the other information requested; in some cases there would also be entitlement to supplementary benefit.

The assumptions differ from those used in my reply to the hon. Member on 10th June—[Vol. 893, c. 156–64]—as follows: the earnings basis for earnings related supplement is that requested by the hon. Member; average figures for rent and rates, based on information from local authorities, have been used, to give a more representative picture than the previous assumption, under which the somewhat arbitrary figure was used for all family sizes; similarly, the ages of the children have been changed to spread

(1) SINGLE MAN: Rent £3.61, Rates £1.37
Unemployed
£ per week
Normal earnings UB Tax refund Rent rebate Rate rebate Net weekly spending power Number of weeks tax refund payable
25 … … … 13.70 4.75 2.82 1.03 17.32 14
30 … … … 14.89 4.75 2.52 0.94 18.12 14
35 … … … 16.07 4.90 2.19 0.83 19.01 14
40 … … … 17.27 4.90 1.97 0.75 19.91 14
45 … … … 18.08 4.90 1.83 0.70 20.53 14
50 … … … 18.61 4.90 1.75 0.67 20.95 14
55 … … … 19.14 4.90 1.65 0.64 21.35 14
60 … … … 19.68 4.90 1.56 0.61 21.77 14
65 … … … 20.21 4.90 1.47 0.57 22.17 14
70 … … … 20.47 4.90 1.43 0.56 22.38 14
Employed
£ per week
Normal earnings Tax NI Rent rebate Rate rebate Net weekly spending power
25 … … … 4.21 1.37 1.49 0.58 15.76
30 … … … 5.96 1.65 0.64 0.28 17.58
35 … … … 7.71 1.92 — — 19.64
40 … … … 9.46 2.20 — — 22.61
45 … … … 11.21 2.47 — — 25.59
50 … … … 12.96 2.75 — — 28.56
55 … … … 14.71 3.02 — — 31.54
60 … … … 16.46 3.30 — — 34.51
65 … … … 18.21 3.57 — — 37.49
70 … … … 19.96 3.79 — — 40.52
(2) MAN, WIFE, NO CHILDREN: Rent £3.61, Rates £1.37
Unemployed
£ per week
Normal earnings UB Tax refund Rent rebate Rate rebate Net weekly spending power Number of weeks tax refund payable
25 … … … 18.00 6.50 3.40 1.22 24.14 14
30 … … … 18.17 6.50 3.35 1.20 24.25 14
35 … … … 21.18 6.50 2.61 0.96 26.27 14
40 … … … 24.17 6.50 1.96 0.75 28.40 14
45 … … … 24.98 6.65 1.80 0.69 29.14 14
50 … … … 25.51 6.65 1.71 0.66 29.55 14
55 … … … 26.04 6.65 1.62 0.63 29.96 14
60 … … … 26.58 6.65 1.52 0.60 30.37 14
65 … … … 27.11 6.65 1.44 0.56 30.78 14
70 … … … 27.37 6.65 1.39 0.55 30.98 14
Employed
£ per week
Normal earnings Tax NI Rent rebate Rate rebate Net weekly spending power
25 … … … 2.32 1.37 3.28 1.18 20.04
30 … … … 4.07 1.65 2.07 0.79 21.41
35 … … … 5.82 1.92 1.22 0.49 23.24
40 … … … 7.57 2.20 0.37 0.19 25.06
45 … … … 9.32 2.47 — — 27.48
50 … … … 11.07 2.75 — — 30.45
55 … … … 12.82 3.02 — — 33.43
60 … … … 14.57 3.30 — — 36.40
65 … … … 16.32 3.57 — — 39.38
70 … … … 18.07 3.79 — — 42.41

them over the age range; and income tax refund while unemployed has been treated as capital for the purposes of entitlement to free welfare milk and taken into account as income for free school meals, rent rebates and rate rebates. The other assumptions, including that of work expenses of 75p a week, are unchanged.

(3) MAN, WIFE, ONE CHILD (aged 3): Rent £4.13, Rates £1.58
Unemployed
£ per week
Normal earnings UB Tax refund FIS Rent rebate Rate rebate Free welfare milk Net weekly spending power Number of weeks tax refund payable
25 … 21.50 8.15 3.30 2.75 1.03 0.49 31.51 4
30 … 21.50 8.25 0.80 3.36 1.23 0.49 29.92 12
35 … 21.50 8.25 — 3.56 1.30 0.49 29.39 14
40 … 24.23 8.25 — 2.87 1.07 — 30.71 14
45 … 27.25 8.25 — 2.23 0.87 — 32.89 14
50 … 29.01 8.40 — 1.91 0.75 — 34.36 14
55 … 29.54 8.40 — 1.82 0.71 — 34.76 14
60 … 30.08 8.40 — 1.72 0.69 — 35.18 14
65 … 30.61 8.40 — 1.64 0.65 — 35.59 14
70 … 30.87 8.40 — 1.59 0.64 — 35.79 14
Employed
£ per week
Normal earnings Tax NI FIS Rent rebate Rate rebate Free welfare milk Net weekly spending power
25 … … 0.71 1.37 3.30 3.92 1.41 0.49 25.58
30 … … 2.46 1.65 0.80 3.29 1.21 0.49 25.22
35 … … 4.21 1.92 — 2.32 0.89 0.49 26.11
40 … … 5.96 2.20 — 1.47 0.59 — 27.44
45 … … 7.71 2.47 — 0.62 0.29 — 29.27
50 … … 9.46 2.75 — — — — 31.33
55 … … 11.21 3.02 — — — — 34.31
60 … … 12.96 3.30 — — — — 37.28
65 … … 14.71 3.57 — — — — 40.26
70 … … 16.46 3.79 — — — — 43.29
(4) MAN, WIFE, TWO CHILDREN (aged 3 and 8): Rent £4.33, Rates £1.64, Family Allowance £1.50
Unemployed
£ per week
Normal earnings UB Tax refund FIS Rent rebate Rate rebate Free school meals Free welfare milk Net weekly spending power Number of weeks tax refund payable
25 … 23.50 — 4.30 4.33 1.64 0.75 0.49 30.54 —
30 … 23.50 8.95 1.80 3.33 1.22 0.75 0.49 35.57 8
35 … 23.50 8.95 — 3.78 1.36 0.75 0.49 34.36 14
40 … 24.23 8.95 — 3.60 1.31 — 0.49 34.11 14
45 … 27.25 8.95 — 2.84 1.06 — — 35.63 14
50 … 30.28 9.10 — 2.22 0.85 — — 37.98 14
55 … 31.54 9.10 — 2.00 0.77 — — 38.94 14
60 … 32.08 9.10 — 1.91 0.74 — — 39.36 14
65 … 32.61 9.10 — 1.82 0.71 — — 39.77 14
70 … 32.87 9.10 — 1.77 0.69 — — 39.96 14
Employed
£ per week
Normal earnings Tax NI FIS Rent rebate Rate rebate Free school meals Free welfare milk Net weekly spending power
25 … — 1.37 4.30 4.33 1.61 0.75 0.49 29.89
30 … 1.72 1.65 1.80 3.94 1.41 0.75 0.49 29.80
35 … 3.47 1.92 — 3.14 1.16 0.75 0.49 29.92
40 … 5.22 2.20 — 2.11 0.81 — — 30.29
45 … 6.97 2.47 — 1.26 0.51 — — 32.12
50 … 8.72 2.75 — 0.41 0.21 — — 33.94
55 … 10.47 3.02 — — — — — 36.29
60 … 12.22 3.30 — — — — — 39.26
65 … 13.97 3.57 — — — — — 42.24
70 … 15.72 3.79 — — — — — 45.27

(5) MAN, WIFE, THREE CHILDREN (aged 3, 8 and 12): Rent £4.33, Rates £1.64, Family Allowance £3.00
Unemployed
£ per week
Normal earnings UB Tax refund FIS Rent rebate Rate rebate Free school meals Free welfare milk Net weekly spending power Number of weeks tax refund payable
25 … 25.50 — 5.30 4.33 1.64 1.50 0.49 35.79 —
30 … 25.50 5.60 2.80 4.19 1.49 1.50 0.49 38.60 3
35 … 25.50 10.00 0.30 3.71 1.34 1.50 0.49 39.87 10
40 … 25.50 10.00 — 3.78 1.36 1.50 0.49 39.66 14
45 … 27.25 10.15 — 3.31 1.21 — 0.49 39.44 14
50 … 30.28 10.15 — 2.57 0.98 — — 41.01 14
55 … 33.30 10.15 — 2.06 0.80 — — 43.34 14
60 … 34.08 10.15 — 1.93 0.75 — — 43.94 14
65 … 34.61 10.15 — 1.83 0.71 — — 44.33 14
70 … 34.87 10.15 — 1.79 0.70 — — 44.54 14
Employed
£ per week
Normal earnings Tax NI FIS Rent rebate Rate rebate Free school meals Free welfare milk Net weekly spending power
25 … — 1.37 5.30 4.33 1.64 1.50 0.49 33.17
30 … 0.74 1.65 2.80 4.33 1.58 1.50 0.49 34.59
35 … 2.49 1.92 0.30 3.84 1.38 1.50 0.49 34.38
40 … 4.24 2.20 — 2.66 1.00 1.50 0.49 35.49
45 … 5.99 2.47 — 1.79 0.70 — — 35.31
50 … 7.74 2.75 — 0.94 0.40 — — 37.13
55 … 9.49 3.02 — — 0.10 — — 38.87
60 … 11.24 3.30 — — — — — 41.74
65 … 12.99 3.57 — — — — — 44.72
70 … 14.74 3.79 — — — — — 47.75
(6) MAN, WIFE, FOUR CHILDREN (aged 3, 8, 12 and 14): Rent £4.94, Rates £1.88, Family Allowance £4.50
Unemployed
£ per week
Normal earnings UB Tax refund FIS Rent rebate Rate rebate Free school meals Free welfare milk Net weekly spending power Number of weeks tax refund payable
25 … 27.50 — 6.30 4.94 1.88 2.25 0.49 41.04 —
30 … 27.50 — 3.80 4.94 1.88 2.25 0.49 38.54 —
35 … 27.50 10.85 1.30 3.89 1.43 2.25 0.49 45.39 6
40 … 27.50 10.85 — 4.21 1.52 2.25 0.49 44.50 12
45 … 27.50 10.85 — 4.21 1.52 2.25 0.49 44.50 14
50 … 30.28 10.85 — 3.52 1.30 — 0.49 44.12 14
55 … 33.30 10.85 — 2.82 1.08 — 0.49 46.22 14
60 … 36.08 10.85 — 2.35 0.91 — — 47.87 14
65 … 36.61 10.85 — 2.27 0.88 — — 48.29 14
70 … 36.87 10.85 — 2.22 0.86 — — 48.48 14
Employed
£ per week
Normal earnings Tax NI FIS Rent rebate Rate rebate Free school meals Free welfare milk Net weekly spending power
25 … — 1.37 6.30 4.94 1.88 2.25 0.49 36.42
30 … — 1.65 3.80 4.94 1.88 2.25 0.49 38.64
35 … 1.51 1.92 1.30 4.73 1.69 2.25 0.49 38.96
40 … 3.26 2.20 — 3.80 1.40 2.25 0.49 39.41
45 … 5.01 2.47 — 2.68 1.03 2.25 0.49 40.90
50 … 6.76 2.75 — 1.83 0.73 0.75 0.49 41.22
55 … 8.51 3.02 — 0.98 0.43 — — 41.81
60 … 10.26 3.30 — — 0.13 — — 43.50
65 … 12.01 3.57 — — — — — 46.35
70 … 13.76 3.79 — — — — — 49.38