§ Mr. Gordon Brown
To ask the Chancellor of the Exchequer if he will estimate the net change in the annual income of a married couple with one earner and two school age children living in rented accommodation, for which they pay the average council house rent and average rates, of a cut in the basic rate of tax to 25p(a) before taking account of any change in their entitlement to housing benefit and family credit and (b) after taking account of any change in their housing benefit entitlement assuming the earner is on (i) half average earnings, (ii) average earnings and (iii) one and a half times average earnings.
§ Mr. Portillo
[holding answer 23 February 1988]: I have been asked to reply.
The information, for a married couple with two children aged 8 and 11, is shown in the table: 367W
Net change in annual income with 25p basic rate of tax Earnings (£pw) Before Entitlement to Housing Benefit Housing Benefit and Family Credit After Change in Housing Benefit and Family Credit Entitlement £pw £pa £pa 122 48.36 14.56 245 176.28 176.28 367 303.16 303.16
All other basic assumptions are consistent with "Impact of the Reformed Structure of Income Related Benefits", October 1987, copies of which are held in the Library.