§ Mr. Austin Mitchellasked the Chancellor of the Exchequer whether he will publish in the Official Report a table showing (a) for single persons, (b) married persons with one earner and (c) married persons with two earners, each aged (i) under 65 years and (ii) 65 years and over, the estimated number of incomes in each income range in 1982–83 starting at a lower limit of £1,500, and the total tax, excluding family income supplement as a proportion of total income.
§ Mr. RidleyI shall let the hon. Member have a reply as soon as possible.
§ Mr. Ralph Howellasked the Chancellor of the Exchequer if he will state what wage (a) a man with a wife and (b) a man with a wife and two children would need to earn in order to be left with as much net weekly spending power as he would have when unemployed, assuming that he had a mortgage of (i) £25,000, (ii) £20,000, (iii) £15,000 (iv) £10,000 and (v) £5,000, that his work expenses were £5 per week and that he was in receipt of all benefits, rebates and so on to which he was entitled.
§ Mr. NewtonI have been asked to reply.
The following table indicates earnings required to produce weekly spending power equivalent to spending power out-of-work on the basis of the illustrative assumptions indicated in my hon. Friend's question:—
385W
Out-of-work weekly spending power Earnings required to produce same spending power Mortgage level £5,000 £10,000 £15,000 £20,000 £25,000 Married couple with children aged 4 and 6 £66.57 £52.50 £96.26 £108.46 £120.64 £132.81 Assumptions
1. The wife has no earnings or income other than child benefit.
2. The mortgage is in its first year, the interest rate is 10 per cent. with mortgage interest tax relief available at standard rate, and capital repayment is ignored because it is not met in supplementary benefit awards. General rates are £4.20 per week in the case of the married couple and £5.10 per week in the case involving children. Water rate is £1.30 per week in both cases.
3. All means-tested benefits are taken up in full.
4. Local authorities continue to exercise their discretion to allow free or cheap meals on low income grounds.
5. No tax repayments are received out of work.
6. The benefit component of net weekly out-of-work spending power reflects a standard supplementary benefit assessment, plus the value of free school meals and free welfare milk in the case involving children.