§ Mr. Richard Wainwrightasked the Secretary of State for Social Services what is his estimate of the number of: (a) one-child, (b) two-child, (c) three-child, (d) four-child and (e) five or more child families with incomes below supplementary benefit level, at supplementary benefit level and at 140 per cent. of supplementary benefit level; and if he will indicate how many one-parent and two-parent families comprise each total, for the latest available date.
§ Mr. DeakinsI regret the information is not available and I do not think that the work involved in obtaining detailed estimates of the type requested by the hon. Member would be justified by the reliability of the figures produced, having regard to the size of sample used in the608W pension; what would be the cost in respect of each benefit; and what would be the net of saving in supplementary benefit in respect of each benefit.
§ Mr. DeakinsIt is estimated that the cost in a full year of increasing the under-mentioned benefits to the level of flat-rate retirement pension at November 1977 rates is as follows:—
Family Expenditure Survey. The hon. Member may, however, like to know that it is estimated that in 1975 of those families below supplementary benefit level 50,000 included three or more children, that of those receiving supplementary benefit, 120,000 included three or more children and that of other families within 140 per cent. of supplementary benefit level 320,000 included three or more children.
§ Mr. Ralph Howellasked the Secretary of State for Social Services what increase in gross earnings a married couple with three children aged 10, eight and six years would require, in order to obtain an increase in spending power of 17 per cent. assuming previous gross weekly earnings of £40, that the mother is not earning, that rent and rates are the average for local authority dwellings and that expenses associated with work are £2 per week.
§ Mr. Orme,pursuant to his reply [Official Report, 4th July 1977;Vol. 934. c. 421], gave the following information:
The table below shows that, on the basis of the assumptions set out in the notes, a family of the size quoted whose gross earnings were £40.38 in April 1976 would require gross earnings of £40 in April 1977 to obtain an increase in net weekly spending power of 17 per cent. The fact that no rise in gross earnings is needed to produce this 17 per cent. increase illustrates the point that net weekly spending power is determined by tax and benefit levels as well as by pay increases, all of which change at different time. The 609W figures therefore reflect this family's hypothetical situation over a past period of 12 months. If different sizes of families and different levels of income were used, the related illustrative figures would, of course, also be different.
April 1976 April 1977 £ £ Gross earnings 40.38 40.00 Family allowances/child benefit 3.00 4.00 Income tax 2.52 1.63 National insurance contributions 2.32 2.30 Family income supplement Nil 3.00 Rent 4.72 5.60 Rent rebate 2.81 3.81 Rates 1.90 2.20 Rates rebate 1.13 1.46 Work expenses 1.75 2.00 Free school meals 0.75 2.25 Net weekly spending power 34.86 40.79 Net weekly spending power is defined for this purpose as gross earnings, plus family allowances/ child benefit, plus family income supplement, less tax, less national insurance contributions, less rent, plus rent rebate, less rates, plus rates rebate, less work expenses, plus the value of free school meals.
Housing costs and work expenses are assumed to have risen between April 1976 and April 1977. The assumptions are:
April 1976 April 1977 £ £ Rent … … … 4.72 5.60 Rates … … … 1.90 2.20 Work expenses … … … 1.75 2.00 The April 1977 figure for income tax assumes a basic rate of 34 per cent. and a tax allowance for a married couple of £1,295.