§ Mr. Ralph Howellasked the Chancellor of the Exchequer using the same assumptions as in the tax benefit model tables of November 1982, what is the net weekly spending power of a man with a wife and two children, whose mortgage repayments are (a) £50, (b) £40, (c) £30 and (d) £25 per week, when he is earning (i) £100, (ii) £130, (iii) £160 and (iv) £200 per week.
§ Mr. NewtonI have been asked to reply.
The information requested is given in the following table. The table relates only to the particular illustrative situations described and has no general application. In particular, the level of some of the mortgage repayments would not be consistent with normal building society policy relating the size of a loan to the mortgagee's gross earnings.
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Net weekly spending power—man, wife and two children aged 4 and 6 Gross earnings (week) £ Mortgage interest payments (£ per week) 50 40 30 25 100 46.60 53.60 60.60 64.10 130 63.17 70.17 75.70 79.20 160 79.41 83.91 90.91 94.41 200 101.41 108.41 115.41 118.91 Assumptions
1. The wife has no earnings or income other than child benefit.
2. Mortgage capital repayments are ignored.
3. Fares to work, general rates and water rates are all at the levels used in the Tax/Benefit Model Tables, November 1982.
4. Local authorities continue to exercise their discretion to allow free school meals on low income grounds.