§ Mr. Ralph Howellasked the Secretary of State for Social Services what is the combined total of income tax and national insurance contribution a man with a wife and two children would pay per week if his income were £109 per week and his rent and rates were £15.60 and £7.35, respectively; what are the combined totals of child benefit, 421W housing benefit and free school milk to which such a man would be entitled; and what the effect would be if tax and national insurance thresholds were raised to £110 per week and all state benefits were eliminated for persons who earned more than £100 per week.
§ Mr. NewtonOn the basis of the assumptions quoted and other assumptions as listed in the following note, the combined weekly total of income tax and national insurance contribution payable would be £22.58. The combined total value of child benefit, housing benefit and free school meals available in such circumstances would be £26.21 a week.
If income tax and national insurance contribution thresholds were raised and state benefits eliminated as outlined, a man in the particular circumstances quoted would be £3.63 a week worse off. The example, however, has no general application: such thresholds and benefit limitations would produce varying gains or losses for people in different circumstances.
Note Other assumptions
- (i)£7.35 figure includes £1.50 water rate
- (ii)current benefit rates apply
- (iii)fares to work are £5.95 a week
- (iv)other assumptions are as in the April 1985 tax/benefit model tables.