§ Mr. Ralph Howellasked the Secretary of State for Social Services if he will estimate the gross weekly earnings necessary for an unemployed 60-year-old married man to be £10 a week better off by working than when in receipt of the long-term supplementary benefit scale rate plus an estimated 20 per cent. to cover disregarded income, passport benefits, additional payments and so forth, assuming fares to work are £5.70 a week, and housing costs are either (a) rent £12.25, rates £4.50 and water rates £1.40, or (b) weekly mortgage interest £15, capital repayments £3, rates £8.00 and water rates £1.40.
§ Dr. BoysonOn the assumptions listed as follows, the figures are(a) £131.95 and (b) £141.48. It is extremely unlikely that the value of disregarded income, passport benefits and so forth would amount to 20 per cent. of the long-term scale rate. If this component of the calculation is deleted the figures become (a) £114.44 and (b) £122.12.
Assumptions
- (i) Mortgage interest of £15 is net of tax at basic rate.
- (ii) Mortgage capital repayments are ignored because they would not figure in supplementary benefit entitlement.
- (iii) Other assumptions are as indicated in the Tax/Benefit model tables, April 1983, lodged in the Library of the House.