HC Deb 05 February 1979 vol 962 cc62-4W
Mr. Ralph Howell

asked the Secretary of State for Social Services what increase in net weekly spending power a man with a wife and two children would receive if his gross wage was increased by 5 per cent., if he previous earnings were £50, £60, £70, £80, £90, or £100 per week, making the same assumptions as in the answer to the question of the hon. Member for Norfolk North—[30 November, Vol. 959, c. 298]—and if he will also state the percentage increase in each case.

Mr. Orme,

pursuant to his reply [Official Report 15 January 1979, vol. 960, c. 607–610], gave the following information

I regret that the second line of entries in the table included in my reply to the hon. Member on 15 January contained some errors. The reply should have read as follows.

As in earlier replies to similar questions by the hon. Member, the comparisons of net weekly spending power which involve yearly wage increases and changes in tax and benefit levels have been made over a past period of a year. The figures given in the table below therefore compare the net weekly spending power of a man with earnings in November 1977 of the various amounts requested with his position a year later when his earnings had been increased by 5 per cent. The table is based on standard assumptions, for example as to housing and work expenses, and has no general validity.

MARRIED COUPLE WITH TWO CHILDREN AGED 4 AND 6
Earnings Tax National Insurance contribution Child benefit Rent Rent rebate Rates Rate rebate Work expenses Free school meals Free welfare milk Net weekly spending power Percentage increase in net weekly spending power
£ £ £ £ £ £ £ £ £ £ £ £
Novemeber1977 50.00 5.09 2.88 2.50 5.60 2.67 2.20 1.08 2.00 1.25 0.81 40.54
November 1978 52.50 5.16 3.41 6.00 6.30 2.77 2.35 1.05 2.10 1.25 44.25 9
November 1977 60.00 8.49 3.45 2.50 5.60 0.97 2.20 0.48 2.00 1.25 43.46
November 1978 63.00 8.64 4.09 6.00 6.30 0.98 2.35 0.42 2.10 1.25 48.17 11
Novemeber1977 70.00 11.89 40.2 2.50 5.60 2.20 2.00 46.79
November 1978 73.50 12.09 4.78 6.00 6.30 2.35 2.10 51.88 11
Novemeber1977 80.00 15.29 4.60 2.50 5.60 2.20 2.00 51.81
November 1978 84.00 15.57 5.46 6.00 6.30 2.35 2.10 58.22 10
Novemeber1977 90.00 18.69 5.18 2.50 5.60 2.20 2.00 58.83
November 1978 94.50 19.02 6.14 6.00 6.30 2.35 2.10 64.59 10
Novemeber1977 100.00 22.09 5.75 2.50 5.60 2.20 2.00 64.86
November 1978 105.00 22.50 6.82 6.00 6.30 2.35 2.10 70.93 9
Notes: The assumptions made about the ages of the children. the housing expenses for this size of family and the work expenses are shown in the table t ha also been assumed that:
(i) the couple have no other personal income;
(ii) national insurance contributions are payable at the non-contracted out rate;
(iii) there arc no tax allowances apart from personal tax allowances: and
(iv) means-tested benefits are taken up in full.