HC Deb 11 May 1977 vol 931 cc546-8W
Mr. Ralph Howell

asked the Secretary of State for Social Services if he will publish figures showing the net weekly spending power of a single mother with two children not over 11 years of age in April 1976 and in April 1977, assuming in each case weekly earnings of £25, £30, £35, and £40.

Mr. Orme

, pursuant to his reply [Official Report, 2nd May 1977; Vol. 931, c. 27], gave the following information:

The net weekly spending power of a single mother with two children aged 4 and 6 on the basis of the assumptions described in the notes, is as shown overleaf:

Earnings Tax National Insurance Contributions Family Income Supplement Rent Rebate Rates Rebate Free Welfare Milk Free School Meals Net Weekly Spending Power
April 1976—
£25 1.44 4.30 4.42 1.65 0.60 0.75 29.91
£30 0.91 1.73 1.80 3.79 1.45 0.60 0.75 30.38
£35 2.66 2.01 2.99 1.19 0.75 29.89
£40 4.41 2.30 2.09 0.88 30.89
April 1977 (a)—
£25 1.44 8.80 5.02 1.85 0.75 0.75 33.93
£30 1.73 6.30 4.40 1.65 0.75 0–75 35.32
£35 1.54 2.01 3.80 3.77 1.45 0.75 0.75 35.17
£40 3.29 2.30 1.30 3.22 1.27 0.75 0.75 34.90
April 1977 (b)—
£25 1.44 8.80 5.02 1.85 0.75 0.75 33.93
£30 1.73 6.30 4.40 1.65 0.75 0.75 35.32
£35 1.54 2.01 3.80 3.77 1.45 0.75 0.75 35.26
£40 3.10 2.30 1.30 3.22 1.27 0.75 0.75 35.09
(i) The figures for April 1977 reflect the proposed tax changes announced in the Budget, (a) based on a tax rate of 35 per cent. and (b) a tax rate of 33 per cent.
(ii) The following assumptions have been made:
April 1976: family allowances and child interim benefit totalling £3 in payment; rent £4.72; rates £1.90; work expenses £1.75.
April 1977: child benefit plus child benefit increase totalling £3 in payment; rent £5.60; rates £2.20; work expenses £2.
(iii) For family income supplement purposes family allowances were taken into account throughout but child interim benefit was not taken into account until July