§ Mr. Ralph Howellasked 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:
547W
548W
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