HC Deb 01 May 1980 vol 983 cc660-9W
Mr. Ralph Howell

asked the Secretary of State for Social Services if he will update, in line with changes resulting from the Budget proposals that will take effect before the uprating of social security benefits in November, the reply to the hon. Member for Norfolk, North on 7 November 1979, Official Report, c. 213.

Mr. Prentice

[pursuant to his reply, 2 April 1980, c. 260]: The tables below give illustrative details as at April 1980 of the net weekly spending power for the family types specified, where the head of the family is employed and during weeks 3 to 28 of unemployment. These tables relate only to the particular illustrative situations described and have no general application. They should not be quoted out of context and without stating the assumptions on which they have been based.

The assumptions made about the ages of the children and the housing and travel to work expenses are shown at the head of each table. Other assumptions made to compile the tables are as follows:

  1. 1. for married couples, the wife has no personal income from earnings or social security benefits (apart from child benefit where appropriate);
  2. 2. there have been no previous spells of unemployment or sickness which would affect the amount of unemployment benefit and earnings-related supplement payable;
  3. 3. where appropriate, earnings-related supplement has been calculated by deflating the recent earnings to a point in the relevant tax year (1978–79 for earnings-related supplement payable from 1 January 1980) by the change in the index of average earnings over that period;
  4. 4. means-tested benefits are taken up in full by working and unemployed families. In the case of family income supplement (FIS) where entitlement exists while at work, pay-

TABLE 1
SINGLE PERSON: RENT £7.10; RATES £2.90; TRAVEL TO WORK EXPENSES £3.00
EMPLOYED
Normal earnings Tax NI Rent rebate Rate rebate Net weekly spending power
£ £ £ £ £
£35.00 … 2.57 2.36 4.52 1.82 23.41
£45.00 … 5.57 3.04 2.74 1.20 27.33
£55.00 … 8.57 3.71 1.04 0.60 31.36
£65.00 … 11.57 4.39 — — 36.04
£75.00 … 14.57 5.06 — — 42.37
£85.00 … 17.57 5.74 — — 48.69
£95.00 … 20.57 6.41 — — 55.02
£105.00 … 23.57 7.09 — — 61.34
£115.00 … 26.57 7.76 — — 67.67
£125.00 … 29.57 8.44 — — 73.99

ment is assumed to continue for the first six months of unemployment:

  1. 5. there are no tax allowances apart from personal allowances;
  2. 6. under the Education Act 1980, the nationally prescribed charge and remission arrangements for school meals were ended. Local education authorities are now able to decide their own charging policies for school meals, including the policy for remitting the charge. Authorities are, however, subject to a statutory minimum requirement, that free provision must be made for children whose parents receive supplementary benefit (SB) or FIS. Comprehensive and detailed information on the charging policies of local education authorities is not available. However, of those local education authorities in England that had decided by mid-March how they would use their new powers, about half were proposing to adopt receipt of SB/FIS as the basis of their free meal policy; and about one-third were proposing to continue to use the November 1979 income scale. On this occasion, therefore, the tables illustrate two cases, namely receipt of SB/FIS as the criterion of entitlement to free meals, and adoption of a somewhat higher level of en titlement—an income scale calculated in the same way as the November 1979 scale. The figures illustrating the latter case are shown in brackets. The charge for the school meals is assumed to be 45p a day.

In his benefits uprating statement on 27 March—[Vol. 981, c. 1658–78.]—my right hon. Friend announced a number of measures which should have a significant effect on increasing the gap between net weekly spending power in and out of work. They include the abolition of the earnings-related supplement to unemployment benefit, measures to make short-term benefits liable to tax, and our interim proposals to uprate these benefits by less than the increase in the general level of prices. As these measures will come into effect at varying times in and after November 1980, they are not reflected in the tables below.

UNEMPLOYED (WEEKS 3–28)
Former earnings UB Rent rebate Rate rebate Net weekly spending power
£ £ £ £
£35.00 … … … 22.01 6.52 2.46 20.99
£45.00 … … … 23.58 6.13 2.34 22.05
£55.00 … … … 24.78 5.83 2.24 22.85
£65.00 … … … 25.98 5.53 2.15 23.66
£75.00 … … … 27.18 5.23 2.05 24.46
£85.00 … … … 28.39 4.93 1.95 25.27
£95.00 … … … 29.59 4.63 1.86 26.08
£105.00 … … … 30.79 4.33 1.76 26.88
£115.00 … … … 31.99 4.10 1.68 27.77
£125.00 … … … 33.19 3.90 1.61 28.70
TABLE 2
MARRIED COUPLE: RENT £7.10; RATES £2.90; TRAVEL TO WORK EXPENSES £3.00
EMPLOYED
Normal earnings Tax NI Rent rebate Rate rebate Net weekly spending power
£ £ £ £ £
£35.00 … — 2.36 7.10 2.90 29.64
£45.00 … 1.13 3.04 5.65 2.18 35.66
£55.00 … 4.13 3.71 3.50 1.47 39.13
£65.00 … 7.13 4.39 1.80 0.87 43.15
£75.00 … 10.13 5.06 — 0.27 47.08
£85.00 … 13.13 5.74 — — 53.13
£95.00 … 16.13 6.41 — — 59.46
£105.00 … 19.13 7.09 — — 65.78
£115.00 … 22.13 7.76 — — 72.11
£125.00 … 25.13 8.44 — — 78.43
UNEMPLOYED (WEEKS 3–28)
Former earnings UB Rent rebate Rate rebate Net weekly spending power
£ £ £ £
£35.00 … … … 29.95 7.10 2.90 29.95
£45.00 … … … 30.65 7.10 2.90 30.65
£55.00 … … … 36.23 6.59 2.49 35.31
£65.00 … … … 37.43 6.29 2.39 36.11
£75.00 … … … 38.63 5.99 2.29 36.91
£85.00 … … … 39.84 5.69 2.20 37.73
££95.00 … … … 41.04 5.39 2.10 38.53
£105.00 … … … 42.24 5.09 2.00 39.33
115.00 … … … 43.44 4.79 1.91 40.14
£125.00 … … … 44.64 4.49 1.81 40.94
TABLE 3
MARRIED COUPLE WITH ONE CHILD AGED 3: RENT £7.80; RATES £3.45; TRAVEL TO WORK EXPENSES £3.00; CHILD BENEFIT £4.00
EMPLOYED
Normal earning Tax NI FIS Rent rebate Rate rebate Free welfare milk Net weekly spending power
£ £ £ £ £ £ £
£35.00 … … — 2.36 10.50 6.87 2.77 1.16 43.69
£45.00 … … 1.13 3.04 5.50 5.62 2.37 1.16 45.23
£55.00 … … 4.13 3.71 0.50 4.47 2.00 1.16 45.04
£65.00 … … 7.13 4.39 — 2.85 1.43 — 47.51
£75.00 … … 10.13 5.06 — 1.15 0.83 — 51.54
£85.00 … … 13.13 5.74 — — 0.23 — 56.11
£95.00 … … 16.13 6.41 — — — — 62.21
£105.00 … … 19.13 7.09 — — — — 68.53
£115.00 … … 22.13 7.76 — — — — 74.86
£125.00 … … 25.13 8.44 — — — — 81.18
UNEMPLOYED (WEEKS 3–28)
Former earnings UB FIS Rent rebate Rate rebate Free welfare milk Net weekly spending power
£ £ £ £ £ £
£35.00 … … 31.65 10.50 6.46 2.64 1.16 45.16
£45.00 … … 31.65 5.50 7.71 3.04 1.16 41.81
£55.00 … … 37.46 0.50 7.50 2.97 1.16 42.34
£65.00 … … 39.13 — 7.21 2.88 — 41.97
£75.00 … … 40.33 — 6.91 2.78 — 42.77
£85.00 … … 41.54 — 6.61 2.69 — 43.59
£95.00 … … 42.74 — 6.31 2.59 — 44.39
£105.00 … … 43.94 — 6.01 2.49 — 45.19
£115.00 … … 45.14 — 5.71 2.40 — 46.00
£125.00 … … 46.34 — 5.41 2.30 — 46.80
TABLE 4
MARRIED COUPLE WITH TWO CHILDREN AGED 4 AND 6: RENT £8.20; RATES £3.55; TRAVEL TO WORK EXPENSES £3.00; CHILD BENEFIT £8.00 EMPLOYED
Normal earnings Tax NI FIS Rent rebate Rate rebate Free school meals Free welfare milk Net weekly spending power
£ £ £ £ £ £ £ £
£35.00 … — 2.36 12.80 7.46 2.94 2.25 1.16 52.50
£45.00 … 1.13 3.04 7.80 6.21 2.54 2.25 1.16 54.04
£55.00 … 4.13 3.71 2.80 4.96 2.14 2.25 1.16 53.72
£65.00 … 7.13 4.39 — 3.72 1.71 — — 52.16
(2.25) (54.41)
£75.00 … 10.13 5.06 — 2.02 1.11 — — 56.19
(2.25) (58.44)
£85.00 … 13.13 5.74 — 0.32 0.51 — — 60.21
£95.00 … 16.13 6.41 — — — — — 65.71
£105.00 … 19.13 7.09 — — — — — 72.03
£115.00 … 22.13 7.76 — — — — — 78.36
£125.00 … 25.13 8.44 — — — — — 84.68
UNEMPLOYED (WEEKS 3–28)
Former earnings UB FIS Rent rebate Rate rebate Free school meals Free welfare milk Net weekly spending power
£ £ £ £ £ £ £
£35.00 … … 33.35 12.80 6.62 2.67 2.25 1.16 55.10
£45.00 … … 33.35 7.80 7.87 3.07 2.25 1.16 51.75
£55.00 … … 37.46 2.80 8.09 3.15 2.25 1.16 51.16
£65.00 … … 40.83 — 7.95 3.10 — — 48.13
(2.25) (50.38)
£75.00 … … 42.03 — 7.65 3.00 — — 48.93
(2.25) (51.18)
£85.00 … … 43.24 — 7.35 2.91 — — 49.75
(2.25) (52.00)
£95.00 … … 44.44 — 7.05 2.81 — — 50.55
(2.25) (52.80)
£105.00 … … 45.64 — 6.75 2.71 — — 51.35
(2.25) (53.60)
£115.00 … … 46.84 — 6.45 2.62 — — 52.16
(2.25) (54.41)
£125.00 … … 48.04 — 6.15 2.52 — — 52.96
(2.25) (55.21)
TABLE 5
MARRIED COUPLE WITH THREE CHILDREN AGED 3, 8 AND 12: RENT £8.20; RATES £3.55; TRAVEL TO WORK EXPENSES £3.00; CHILD BENEFIT £12.00
EMPLOYED
Normal earnings Tax NI FIS Rent rebate Rate rebate Free school meals Free welfare milk Net weekly spending power
£ £ £ £ £ £ £ £
£35.00 … — 2.36 15.00 7.83 3.06 4.50 1.16 61.44
£45.00 … 1.13 3.04 10.00 6.58 2.66 4.50 1.16 62.98
£55.00 … 4.13 3.71 5.00 5.33 2.26 4.50 1.16 62.66
£65.00 … 7.13 4.39 — 4.35 1.93 — — 58.17
(4.50) (62.67)
£75.00 … 10.13 5.06 — 2.65 1.33 — — 61.04
(4.50) (65.54)
£85.00 … 13.13 5.74 — 0.95 0.73 — — 65.06
(2.25) (67.31)
£95.00 … 16.13 6.41 — — 0.13 — — 69.84
£105.00 … 19.13 7.09 — — — — — 76.03
£115.00 … 22.13 7.76 — — — — — 82.36
£125.00 … 25.13 8.44 — — — — — 88.68
UNEMPLOYED (WEEKS 3–28)
Former earnings UB FIS Rent rebate Rate rebate Free school meals Free welfare milk Net weekly spending power
£ £ £ £ £ £ £
£35.00 … … 35.05 15.00 6.57 2.66 4.50 1.16 65.19
£45.00 … … 35.05 10.00 7.82 3.06 4.50 1.16 61.84
£55.00 … … 37.46 5.00 8.20 3.27 4.50 1.16 59.84
£65.00 … … 42.53 — 8.20 3.26 — — 54.24
(4.50) (58.74)
£75.00 … … 43.73 — 8.15 3.16 — — 55.29
(4.50) (59.79)
£85.00 … … 44.94 — 7.85 3.07 — — 56.11
(4.50) (60.61)
£95.00 … … 46.14 — 7.55 2.97 — — 56.91
(4.50) (61.41)
£105.00 … … 47.34 — 7.25 2.87 — — 57.71
(4.50) (62.21)
£115.00 … … 48.54 — 6.95 2.78 — — 58.52
(4.50) (63.02)
£125.00 … … 49.74 — 6.65 2.68 — — 59.32
(4.50) (63.82)
TABLE 6
MARRIED COUPLE WITH FOUR CHILDREN AGED 3, 8, 11 AND 16: RENT £9.50; RATES £4.05; TRAVEL TO WORK EXPENSES £3.00; CHILD BENEFIT £16.00 EMPLOYED
Normal earnings Tax NI FIS Rent rebate Rate rebate Free school meals Free welfare milk Net weekly spending power
£ £ £ £ £ £ £ £
£35.00 … — 2.36 16.50 9.16 3.54 6.75 1.16 69.20
£45.00 … 1.13 3.04 12.30 7.71 3.07 6.75 1.16 71.27
£55.00 … 4.13 3.71 7.30 6.46 2.67 6.75 1.16 70.95
£65.00 … 7.13 4.39 2.30 5.37 2.31 6.75 1.16 70.82
£75.00 … 10.13 5.06 — 4.06 1.85 — 1.16 66.33
(6.75) (73.08)
£85.00 … 13.13 5.74 — 2.36 1.25 — — 69.19
(6.75) (75.94)
£95.00 … 16.13 6.41 — 0.66 0.65 — — 73.22
(4.50) (77.72)
£105.00 … 19.13 7.09 — — 0.05 — — 78.28
£115.00 … 22.13 7.76 — — — — — 84.56
£125.00 … 25.13 8.44 — — — — — 90.88
UNEMPLOYED (WEEKS 3–28)
Former earnings UB FIS Rent rebate Rate rebate Free school meals Free welfare milk Net weekly spending power
£ £ £ £ £ £ £
£35.00 … … 36.75 16.50 7.47 3.00 6.75 1.16 74.08
£45.00 … … 36.75 12.30 8.52 3.33 6.75 1.16 71.26
£55.00 … … 37.46 7.30 9.50 3.68 6.75 1.16 68.30*
£65.00 … … 44.23 2.30 9.15 3.54 6.75 1.16 69.58
£75.00 … … 45.43 — 9.43 3.62 — 1.16 62.09*
(68.84)* (6.75)
£85.00 … … 46.64 — 9.13 3.53 — 1.16 62.91
(6.75) (69.66)
£95.00 … … 47.84 — 8.83 3.43 — 1.16 63.71
(6.75) (70.46)
£105.00 … … 49.04 — 8.53 3.33 — 1.16 64.51
(6.75) (71.26)
£115.00 … … 50.24 — 8.23 3.24 — 1.16 65.32
(6.75) (72.07)
£125.00 … … 51.44 — 7.93 3.14 — — 64.96
(6.75) (71.71)
*There would also be title to supplementary benefit which would give a net weekly spending power of £68–96.