HC Deb 15 January 1981 vol 996 cc577-9W
Mr. Ralph Howell

asked the Secretary of State for Social Services, further to his reply to the hon. Member for Norfolk, North Official Report, 27 October 1980, c. 207, showing the net weekly spending power of a one parent family in and out of work and at different levels of gross earnings, if he will republish the figures, using the same basic assumptions, but including earnings of £4, £6, £8, £10, £12, £14, £16, £20 and £25, respectively, thus taking into account the new earnings disregards.

Table 1
Net weekly spending power (£) of a lone parent with two children aged 4 and 6 receiving supplementary allowance (ordinary rate) at various levels of earnings
Supplementary allowance Child benefit Net earnings Rent Rates Free school meals Free welfare milk Net weekly spending power
37.15 12.50 4.00 8.80 3.55 2.25 1.30 44.85
36.15 12.50 6.00 8.80 3.55 2.25 1.30 45.85
35.15 12.50 8.00 8.80 3.55 2.25 1.30 46.85
34.15 12.50 10.00 8.80 3.55 2.25 1.30 47.85
33.15 12.50 12.00 8.80 3.55 2.25 1.30 48.85
32.15 12.50 14.00 8.80 3.55 2.25 1.30 49.85
31.15 12.50 16.00 8.80 3.55 2.25 1.30 50.85
29.6215 12.50 20.00 8.80 3.55 2.25 1.30 52.85
24.15 12.50 25.00 8.80 3.55 2.25 1.30 52.85

Table 2
Net weekly spending power (£) of a lone parent with two children aged 4 and 6 receiving supplementary allowance (long-term rate) at various levels of earnings
Supplementary allowance Child benefit Net earnings Rent Rates Free school meals Free welfare milk Net weekly spending power
43.00 12.50 4.00 8.80 3.55 2.25 1.30 50.70
42.00 12.50 6.00 8.80 3.55 2.25 1.30 51.70
41.00 12.50 8.00 8.80 3.55 2.25 1.30 52.70
40.00 12.50 10.00 8.80 3.55 2.25 1.30 53.70
39.00 12.50 12.00 8.80 3.55 2.25 1.30 54.70
38.00 12.50 14.00 8.80 3.55 2.25 1.3 55.70
37.00 12.50 16.00 8.80 3.55 2.55 1.30 56.70
35.00 12.50 20.00 8.80 3.55 2.55 1.30 58.70
30.00 12.50 25.00 8.80 3.55 2.55 1.30 58.70

Note to Tables 1 and 2

The supplementary allowance figures shown are the amounts by which the family's income falls short of their requirements. In these examples, it is calculated by adding together the appropriate scale rates, the heating addition for a child under 5 and the sum of the rent and rates payable; from this total is deducted child benefit and net earnings after allowing the appropriate disregard.

Mrs. Chalker

The information requested is set out in the tables below. My hon. Friend will appreciate that the figures relate only to the hypothetical circumstances he has chosen. One of the assumptions he asked to be made was that working expenses were £15 a week. This is very high compared with the Department's assumption of work expenses of £3.55 a week, which represents average cost of fares to work to to heads of households using public transport.

Tables 1 and 2 show the net weekly spending power with ordinary and long-term supplementary benefit rates respectively at the various levels of part-time earnings specified by my hon. Friend. Supplementary benefit would be payable only if the lone parent were working fewer than 30 hours a week. Tables 3 and 4 show the full-time earnings required to give the same net weekly spending power. In these examples, family income supplement (FIS) could only be awarded if the lone parent were working at least 24 hours a week.

In all the tables it is assumed that the family has no capital or income except as shown and that all entitlement to means-tested benefits is taken up. It is also assumed that there are no tax allowances apart from personal allowances.

Table 3
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 Tax National Insurance Contribution Child benefit Family income supplement
Rent rebate Rate rebate Work expenses Free school meals Free welfare milk Net weekly spending power
27.13 — 1.83 12.50 18.50 8.80 3.55 15.00 2.25 1.30 *44.85
28.20 — 1.90 12.50 18.50 8.80 3.55 15.00 2.25 1.30 *45.85
29.28 — 1.98 12.50 18.50 8.80 3.55 15.00 2.25 1.30 *46.85
30.35 — 2.05 12.50 18.50 8.80 3.55 15.00 2.25 1.30 *47.85
31.42 — 2.12 12.50 18.50 8.80 3.55 15.00 2.25 1.30 *48.85
32.56 — 2.20 12.50 18.50 8.80 3.49 15.00 2.25 1.30 *49.85
33.74 — 2.28 12.50 18.50 8.80 3.39 15.00 2.25 1.30 *50.85
36.35 — 2.45 12.50 18.50 8.57 3.18 15.00 2.25 1.30 52.85
36.35 — 2.45 12.50 18.50 8.57 3.18 15.00 2.25 1.30 52.85
* If working fewer than 30 hours a week could qualify for a supplementary allowance.

Table 4
Gross earnings needed to provide net weekly spending power equivalent to that available with supplementary allowance at long term rate, as in
Table 2.
Gross earnings Tax National Insurance Contribution Child benefit Family income supplement Rent rebate Rate rebate Work expenses Free school meals Free welfare milk Net weekly spending power
33.56 — 2.27 12.50 18.50 8.80 3.41 15.00 2.25 1.30 50.70
34.73 — 2.34 12.50 18.50 8.80 3.31 15.00 2.25 1.30 51.70
36.11 — 2.44 12.50 18.50 8.63 3.20 15.00 2.25 1.30 52.70
38.66 — 2.61 12.50 17.70 8.19 3.06 15.00 2.25 1.30 53.70
79.20 11.39 5.35 12.50 — 3.38 1.46 15.00 *2.25 — 54.70
81.68 12.13 5.51 12.50 — 2.95 1.31 15.00 *2.25 — 55.70
84.17 12.88 5.68 12.50 — 2.53 1.16 15.00 *2.25 — 56.70
89.15 14.37 6.02 12.50 — 1.68 0.86 15.00 *2.25 — 58.70
89.15 14.37 6.02 12.50 — 1.68 0.86 15.00 *2.25 — 58.70
* Mandatory provision of free school meals ceases when title to FIS ceases, but local education authorities have discretion to allow free or cheap meals to other children and this table illustrates the case where an authority continues to apply the November 1979 conditions for entitlement.