HC Deb 04 July 1980 vol 987 cc730-2W
Mr. Ralph Howell

asked the Secretary of State for Social Services, pursuant to his reply to the hon. Member for Norfolk, North, Official Report, 10 June, showing the net weekly spending power for one-parent families, if he will show the revised net weekly spending power figures assuming that entitlement to free school meals ends when entitlement to family income supplement ends and indicating the gross earnings level at which net weekly spending power is equivalent to that available for supplementary allowance at the longterm rate and at the ordinary rate under this new assumption.

Mrs. Chalker

The information requested is given in the tables set out below. Table 3 shows the levels at which, on the basis of my hon. Friend's hypothetical assumptions, including those on free school meals and work expenses of £15 per week, there may no longer be title to means-tested benefits.

Table 1
Net Weekly Spending Power (£) of a Single Mother with Two Children aged 4 and 6; receiving Supplementary Allowance (Ordinary Rate) and Earning £6 a week
Supplementary allowance Child benefits Net earnings Rent Rates Free school meals Free welfare milk Net weekly spending power
31.95 10.50 6.00 8.20 3.55 2.25 1.16 40.11

Table 2
Net Weekly Spending Power (£) of a Single Mother with Two Children aged 4 and 6; receiving Supplementary Allowance (Long Term Rate) and Earning £6 a week
Supplementary allowance Child benefits Net earnings Rent Rates Free school meals Free welfare milk Net weekly spending power
37.35 10.50 6.00 8.20 3.55 2.25 1.16 45.51

Table 3
Net Weekly Spending Power (£) of a Single Mother with Two Children aged 4 and 6, Working Full-time with £15 Work Expenses
Gross earnings Tax National insurance contributions Child benefits Family income supplement Rent rebate
29.70* … — 2.00 10.50 14.50 7.73
35.00 … — 2.36 10.50 12.80 6.83
40.00 … — 2.70 10.50 10.30 6.21
50.00 … 2.63 3.38 10.50 5.30 4.96
60.00 … 5.63 4.05 10.50 0.30 4.10
70.00 … 8.63 4.73 10.50 — 2.45
73.45† … 9.66 4.95 10.50 — 1.86
80.00 … 11.63 5.40 10.50 — 0.75
83.00 … 12.52 5.60 10.50 — 0.24
90.00 … 14.63 6.08 10.50 — —
95.00 … 16.13 6.41 10.50 — —
96.00 … 16.43 6.48 10.50 — —
105.00 … 19.13 7.09 10.50 — —

Gross earnings Rate rebate Work expenses Free school meals Free welfare milk Net weekly spending power
29.70* … 3.03 15.00 2.25 1.16 40.11
35.00 … 2.74 15.00 2.25 1.16 42.17
40.00 … 2.54 15.00 2.25 1.16 43.51
50.00 … 2.14 15.00 2.25 1.16 43.55
60.00 … 1.84 15.00 2.25 1.16 43.72
70.00 … 1.26 15.00 — — 44.10
73.45† … 1.05 15.00 — — 45.51
80.00 … 0.66 15.00 — — 48.13
83.00 … 0.48 15.00 — — 49.35
90.00 … 0.06 15.00 — — 53.10
95.00 … — 15.00 — — 56.21
96.00 … — 15.00 — — 56.84
105.00 … — 15.00 — — 62.53
* Gross earnings needed to provide net weekly spending power equivalent to that available with supplementary allowance at ordinary rate, as in table 1.
† Gross earnings needed to provide net weekly spending power equivalent to that available with supplementary allowance at long-term rate, as in table 2.

My hon. Friend will appreciate that the figures relate only to the illustrative examples he has chosen. In the DHSS tax/benefit model tables showing net weekly spending power for a range of working families, it is assumed that travel-to-work expenses are £3 a week.