HC Deb 25 April 1988 vol 132 cc36-9W
Sir Brandon Rhys Williams

To ask the Secretary of State for Social Services if he will publish tables using the assumptions in his answer to the hon. Member for Kensington of 4 February,Official Report, column 737, but using expenditure and benefit figures appropriate for families in those inner London areas for which he has sufficient data, and with an additional column showing the extent of the differences that will result from the changes in benefits intended for April.

Mr. Scott

[holding answer 21 March 1988]: The information is set out in the tables.

The answers provided are not representative of families with children living in inner London, as the sample covers less than 50 per cent. of the area's boroughs; nor do the answers reflect the wide variety of rents and domestic rates that people actually pay.

New benefit system from April 1988: Average rent and rates for six inner London boroughs Married couple with two children aged 4 and 6
Gross earnings Tax NI Family credit Child benefit Rent Rent rebate Rates Rate rebate Fares to work Net weekly spending power Difference between systems
60.00 0.00 3.00 40.32 14.50 22.92 8.16 10.24 2.42 5.85 83.39 -8.29
70.00 0.00 4.90 34.65 14.50 22.92 6.58 10.24 1.93 5.85 83.75 -9.38
80.00 1.22 5.60 28.99 14.50 22.92 5.00 10.24 1.45 5.85 84.11 -10.45
90.00 3.92 6.30 24.37 14.50 22.92 3.71 10.24 1.05 5.85 84.40 -10.11
100.00 6.62 7.00 19.75 14.50 22.92 2.43 10.24 0.65 5.85 84.70 -9.76
110.00 9.32 9.90 16.67 14.50 22.92 1.57 10.24 0.00 5.85 84.51 -7.27
120.00 12.02 10.80 12.19 14.50 22.92 0.00 10.24 0.00 5.85 84.86 -4.90
130.00 14.72 11.70 7.71 14.50 22.92 0.00 10.24 0.00 5.85 86.78 -4.78
140.00 17.42 12.60 3.23 14.50 22.92 0.00 10.24 0.00 5.85 88.70 -4.66
150.00 20.12 13.50 0.00 14.50 22.92 0.00 10.24 0.00 5.85 91.87 -3.22
160.00 22.82 14.40 0.00 14.50 22.92 0.00 10.24 0.00 5.85 98.27 0.00
170.00 25.52 15.30 0.00 14.50 22.92 0.00 10.24 0.00 5.85 104.67 0.00
Old benefit system from April 1988: Average rent and rates for six inner London boroughs Married couple with three children aged 3, 8 and 11
Gross earnings Tax NI FIS Child benefit Rent Rent rebate Rates Rate rebate Fares to work Free school meals Free welfare milk Net weekly spending power
60.00 0.00 3.00 32.90 21.75 22.92 20.20 10.24 7.28 5.85 5.10 1.83 107.05
70.00 0.00 4.90 30.50 21.75 22.92 18.30 10.24 6.68 5.85 5.10 1.83 110.25
80.00 1.22 5.60 25.50 21.75 22.92 17.05 10.24 6.28 5.85 5.10 1.83 111.68
90.00 3.92 6.30 20.50 21.75 22.92 15.80 10.24 5.88 5.85 5.10 1.83 111.63
100.00 6.62 7.00 15.50 21.75 22.92 14.55 10.24 5.48 5.85 5.10 1.83 111.58
110.00 9.32 9.90 10.50 21.75 22.92 13.16 10.24 4.99 5.85 5.10 1.83 109.10
120.00 12.02 10.80 5.50 21.75 22.92 11.51 10.24 4.34 5.85 5.10 1.83 108.20
130.00 14.72 11.70 0.50 21.75 22.92 9.86 10.24 3.69 5.85 5.10 1.83 107.30
140.00 17.42 12.60 0.00 21.75 22.92 6.72 10.24 2.45 5.85 5.10 0.00 106.99
150.00 20.12 13.50 0.00 21.75 22.92 3.42 10.24 1.15 5.85 5.10 0.00 108.79
160.00 22.82 14.40 0.00 21.75 22.92 0.00 10.24 0.00 5.85 5.10 0.00 110.62
170.00 25.52 15.30 0.00 21.75 22.92 0.00 10.24 0.00 5.85 0.00 0.00 111.92
New Benefit System from April 1988: Average rent and rates for six Inner London Boroughs Married couple with three children aged 3, 8 and 11
Gross earnings Tax NI Family credit Child benefit Rent Rent rebate Rates Rate rebate Fares to work Net weekly spending power Dif-ference between systems
60.00 0.00 3.00 51.72 21.75 22.92 6.50 10.24 1.91 5.85 99.87 -7.18
70.00 0.00 4.90 46.05 21.75 22.92 4.92 10.24 1.42 5.85 100.23 -10.02
80.00 1.22 5.60 40.39 21.75 22.92 3.24 10.24 0.94 5.85 100.59 -11.09
90.00 3.92 6.30 35.77 21.75 22.92 2.06 10.24 0.54 5.85 100.89 -10.74
100.00 6.62 7.00 31.15 21.75 22.92 0.77 10.24 0.00 5.85 101.04 -10.54
110.00 9.32 9.90 28.07 21.75 22.92 0.00 10.24 0.00 5.85 101.59 -7.51
120.00 12.02 10.80 23.59 21.75 22.92 0.00 10.24 0.00 5.85 103.51 -4.69
130.00 14.72 11.70 19.11 21.75 22.92 0.00 10.24 0.00 5.85 105.43 -1.87
140.00 17.42 12.60 14.63 21.75 22.92 0.00 10.24 0.00 5.85 107.35 0.36
150.00 20.12 13.50 10.15 21.75 22.92 0.00 10.24 0.00 5.85 109.27 0.48
160.00 22.82 14.40 5.67 21.75 22.92 0.00 10.24 0.00 5.85 111.19 0.57
170.00 25.52 15.30 1.19 21.75 22.92 0.00 10.24 0.00 5.85 113.11 1.19
Old benefit system from April 1988: Average rent and rates for six inner London boroughs Lone working mother with two children aged 4 and 6
Gross earnings Tax NI FIS Child benefit Rent Rent rebate Rates Rate rebate Fares to work Free school meals Free welfare milk Net weekly spending power
60.00 0.00 3.00 28.70 19.40 22.92 17.94 10.24 6.56 5.85 2.55 1.83 94.97
70.00 0.00 4.90 23.70 19.40 22.92 16.69 10.24 6.16 5.85 2.55 1.83 96.42
80.00 1.22 5.60 18.70 19.40 22.92 15.44 10.24 5.76 5.85 2.55 1.83 97.85
90.00 3.92 6.30 13.70 19.40 22.92 14.19 10.24 5.36 5.85 2.55 1.83 97.80
10.000 6.62 7.00 8.70 19.40 22.92 12.68 10.24 4.80 5.85 2.55 1.83 97.33
110.00 9.32 9.90 3.70 19.40 22.92 11.03 10.24 4.15 5.85 2.55 1.83 94.43
120.00 12.02 10.80 0.00 19.40 22.92 8.95 10.24 3.33 5.85 2.55 0.00 92.40
New benefit system from April 1988: Average rent and rates for six inner London boroughs Lone working mother with two children aged 4 and 6
Gross Earnings Tax N.I. Family Credit Child Benefit Rent Rent Rebates Rates Rate Rebate Fares to Work Net Weekly Spending Power Dif-ference between Systems
60.00 0.00 3.00 40.32 19.40 22.92 2.08 10.24 0.55 5.85 80.34 -14.63
70.00 0.00 4.90 34.65 19.40 22.92 0.00 10.24 0.00 5.85 80.14 -16.28
80.00 1.22 5.60 28.99 19.40 22.92 0.00 10.24 0.00 5.85 82.56 -15.29
90.00 3.92 6.30 24.37 19.40 22.92 0.00 10.24 0.00 5.85 84.54 -13.26
100.00 6.62 7.00 19.75 19.40 22.92 0.00 10.24 0.00 5.85 86.52 -10.81
110.00 9.32 9.90 16.67 19.40 22.92 0.00 10.24 0.00 5.85 87.84 -6.59
120.00 12.02 10.80 12.19 19.40 22.92 0.00 10.24 0.00 5.85 89.76 -2.64
Old tax and benefit system from April 1988: Average rent and rates for 6 inner London boroughs Lone parent with 2 children aged 4 and 6
Supple-mentary benefit Earnings Tax NI Fares to work Rent 1Rates Housing benefit CHB FSM FWM Net weekly spending power
A. Not working—after 1 year on benefit 45.69 — — — — 22.92 10.24 31.62 19.40 2.55 1.83 67.93
B. Working part time—earning £20 per week 230.65 20.00 0.00 0.00 2.92 22.92 10.24 31.62 19.40 2.55 1.83 69.97
C. Working part time—earning £40 per week 212.11 40.00 0.00 0.00 2.92 22.92 10.24 31.62 19.40 2.55 1.83 71.43
1 Includes water rates of £1.54.
2 Assumes benefit in payment for less than a year.
New benefit system from April 1988: Average rent and rates for 6 inner London boroughs Lone parent with 2 children aged 4 and 6
Income support Earnings Tax NI Fares to work Rent 1 Rates Housing benefit CHB FSM FWM Net weekly spending power Dif-ference between systems
A. Not working —after 1 year on benefit 45.35 — — — — 22.92 10.24 29.88 19.40 2.55 1.83 65.85 -2.08
B. Working part-time— earning £20 p.w. 240.35 20.00 0.00 0.00 2.92 22.92 10.24 29.88 19.40 2.55 1.83 77.93 + 7.96
C. Working part-time— earning £40 p.w. 220.35 40.00 0.00 0.00 2.92 22.92 10.24 29.88 19.40 2.55 1.83 77.93 +6.50
1 Includes water rates of £1.54.
2 Assumes benefit in payment for less than a year.

Notes to tables:

i. Average rent and rates figures for six inner London boroughs have been provided by the Department of Environment.

ii. The Thames Water authority average water rate has been used as the rate is consistent throughout London.

iii. Rent, rates and water rates assumptions for April 1988 are based on the RPI increase for September 1986 to September 1987 (4–2 per cent.).

iv. The remaining assumptions used are those set out in "Impact of the Reformed Structure of Income-Related Benefits" October 1987.

v. The "fares to work" used in the tables illustrating part-time earnings are assumed to be half of the "fares to work" of a full-time worker.

vi. The national supplementary benefit figures used in the previous reply of 4th February, have been reduced by 24p. This is the difference between the assumed national average local authority water rate and the assumed London average local authority water rate.