HC Deb 18 April 1990 vol 170 cc894-7W
Mrs. Beckett

To ask the Secretary of State for Social Security if he will publish figures, similar to those in his Department's tax/benefit model table, showing net weekly spending power for a lone mother with two children aged four and six years under the benefit system as uprated in April 1990 and in each of the following circumstances(a) not working, after one year on benefits, (b) earning £20 a week from part-time working and (c) working full-time and earning (i) £60, (ii) £70, (iii) £80, (iv) £90,(v) £100, (vi) £110 and (vii) £120 per week.

Mrs. Gillian Shephard

[holding answer 2 March 1990]: The information is in the tables. It should be noted that the results in the tables remain arbitrary. They cannot reflect, except by chance, the actual circumstances of particular people and cannot claim to be representative of the population at large. The tables use hypothetical rents so they do not reflect the full range of housing costs which people can pay.

Single person with 2 children aged 4 and 6
Net Income (after housing costs) (£Pw)
(a) Not working1 76.22
(b) Earning £20 per week part-time 91.22
1 There is no longer a difference in the amount of benefit paid after one year.

(c)—Earnings and benefits family head in full-time work as at April 1990
Single person with 2 children aged 4 and 6
Basic tax rate = 25 per cent.
Tax threshold=£90.87 Total net income on income support =£106.41
Net income after rent and community charge on income support=£76.22
Gross earnings Tax National insurance Take home pay Family credit Child benefit Rent Rent rebate Community charge Community charge rebate Net income Net income after rent and community charge Deduction rate(per cent.)
60.00 0.00 2.18 57.82 52.70 20.10 23.48 0.00 6.71 0.00 130.62 100.43 73.0
70.00 0.00 3.08 66.92 46.33 20.10 23.48 0.00 6.71 0.00 133.35 103.16 73.0
80.00 0.00 3.98 76.02 39.96 20.10 23.48 0.00 6.71 0.00 136.08 103.89 73.0
90.00 0.00 4.88 85.12 33.59 20.10 23.48 0.00 6.71 0.00 138.81 108.62 74.0
100.00 2.28 5.78 91.94 28.81 20.10 23.48 0.00 6.71 0.00 140.85 110.66 80.0
110.00 4.78 6.68 98.54 24.19 20.10 23.48 0.00 6.71 0.00 142.83 112.64 80.0
120.00 7.28 7.58 105.14 19.57 20.10 23.48 0.00 6.71 0.00 144.81 114.62 80.0

Notes to tables:

  1. 1. Based on methods and assumptions used in Tax Benefit Model Tables.
  2. 2. A community charge of £350 for each adult is assumed throughout.

Mrs. Beckett

To ask the Secretary of State for Social Security if he will publish tables, similar to those in his Department's tax/benefit model table, showing net weekly spending power for each of a single wage married couple(a) with two children aged four and six years and (b) with three children aged three, eight and eleven years, earning (i) £60, (ii) £70, (iii) £80, (iv) £90, (v) £100, (vi) £110, (vii) £120, (viii) £130, (ix) £140, (x) £150, (xi) £160, and (xii) £170 under the benefit system as uprated in April.

(a)—Earnings and benefits family head in full-time work as at April 1990
Married couple with 2 children aged 4 and 6
Table II
Basic tax rate= 25 per cent.
Tax threshold=£90.87 Total net income on income support= £128.58
Net income after rent and community charge on income support=£91.68
Gross earnings Tax National insurance Take home pay Family credit Child benefit Rent Rent rebate Community charge Community charge rebate Net income Net income after rent and community charge Deduction rate (per cent.)
60.00 0.00 2.18 57.82 52.70 14.50 23.48 6.99 13.42 6.93 138.94 102.04 95.0
70.00 0.00 3.08 66.92 46.33 14.50 23.48 5.22 13.42 6.52 139.49 102.59 95.0
80.00 0.00 3.98 76.02 39.96 14.50 23.48 3.44 13.42 6.11 140.03 103.13 94.0
90.00 0.00 4.88 85.12 33.59 14.50 23.48 1.67 13.42 5.70 140.58 103.68 95.0
100.00 2.28 5.78 91.94 28.81 14.50 23.48 0.00 13.42 5.40 140.65 103.75 83.0
110.00 4.78 6.68 98.54 24.19 14.50 23.48 0.00 13.42 5.10 142.33 105.43 83.0
120.00 7.28 7.58 105.14 19.57 14.50 23.48 0.00 13.42 4.80 144.01 107.11 83.0
130.00 9.78 8.48 111.74 14.95 14.50 23.48 0.00 13.42 4.50 145.69 108.79 82.0
140.00 12.28 9.38 118.34 10.33 14.50 23.48 0.00 13.42 4.21 147.38 110.48 83.0
150.00 14.78 10.28 124.91 5.71 14.50 23.48 0.00 13.42 3.91 149.06 112.16 83.0
160.00 17.28 11.18 131.54 1.09 14.50 23.48 0.00 13.42 3.61 150.74 113.84 83.0
170.00 19.78 12.08 138.14 0.00 14.50 23.48 0.00 13.42 2.79 155.43 118.53 44.0

(b)—Earnings and benefits family head in full-time work as at April 1990
Married couple with 3 children aged 3, 8 and 11
Table II
Basic tax rate=25 per cent.
Tax threshold=£90.87 Total net income on income support=£149.68
Net income after rent and community charge on income support=£112.78
Gross earnings Tax National insurance Take home pay Family credit Child benefit Rent Rent rebate Community charge Community charge rebate Net income Net income after rent and community charge Deduction rate (per cent.)
60.00 0.00 2.18 57.82 66.85 21.75 23.48 4.94 13.42 6.42 157.82 120.92 94.0
70.00 0.00 3.08 66.92 60.48 21.75 23.48 3.17 13.42 6.05 158.37 121.47 95.0
80.00 0.00 3.98 76.02 54.11 21.75 23.48 1.40 13.42 5.64 158.92 122.02 95.0
90.00 0.00 4.88 85.12 47.74 21.75 23.48 0.00 13.42 5.23 159.84 122.94 78.0
100.00 2.28 5.78 91.94 42.96 21.75 23.48 0.00 13.42 4.92 161.57 124.67 83.0
110.00 4.78 6.68 98.54 38.34 21.75 23.48 0.00 13.42 4.63 163.26 126.36 83.0
120.00 7.28 7.58 105.14 33.72 21.75 23.48 0.00 13.42 4.33 164.94 128.04 83.0
130.00 9.78 8.48 111.74 29.10 21.75 23.48 0.00 13.42 4.03 166.62 129.72 83.0
140.00 12.28 9.38 118.34 24.48 21.75 23.48 0.00 13.42 3.74 168.31 131.41 83.0
150.00 14.78 10.28 124.94 19.86 21.75 23.48 0.00 13.42 3.44 169.99 133.09 83.0

Mrs. Gillian Shephard

[holding answer 2 March 1990]: The information is in the tables. It should be noted that the results in the tables remain arbitrary. They cannot reflect, except by chance, the actual circumstances of particular people and cannot claim to be representative of the population at large. The tables use hypothetical rents, so they do not reflect the full range of housing cost which people can pay.

Gross earnings Tax National insurance Take home pay Family credit Child benefit Rent Rent rebate Community charge Community charge rebate Net income Net income after rent and community charge Deduction rate (per cent.)
160.00 17.28 11.18 131.54 15.24 21.75 23.48 0.00 13.42 3.14 171.67 134.77 83.0
170.00 19.78 12.08 138.14 10.62 21.75 23.48 0.00 13.42 2.84 173.35 136.45 83.0

Notes to tables (a) and (b):

  1. 1. Based on methods and assumptions used in tax benefit model tables.
  2. 2. A community charge of £350 for each adult is assumed throughout.