HC Deb 28 June 1990 vol 175 cc351-3W
Sir Ian Gilmour

To ask the Secretary of State for Social Security what will be the effect of a community charge levied at(a) £350 and (b) £450 on the replacement ratios, expressed as out-of-work spending power divided by in-work spending power, of unemployed people under 25 years, living with their parents, and offered jobs at (a) £80 a week, (b) £100 a week and (c) £120 a week, assuming work expenses averaging £10 a week.

Mrs. Gillian Shephard

[holding answer 5 June 1990]: The information is listed in the table. It should be noted that the results in the table 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.

Replacement ratios
Gross earnings per week £ Community charge £350 per cent. Community charge £450 per cent.
80 43 43
100 36 36
120 30 31

Notes:—

1. The methods and assumptions are those used in the published Tax/Benefit Model Tables but in this example it has been assumed that no rent is payable.

2. Rounded to the nearest per cent.

Sir Ian Gilmour

To ask the Secretary of State for Social Security what will be the effect of a community charge levied at(a) £350 and (b) £450 on the replacement ratios expressed as out-of-work spending power divided by in-work spending power, of a teenage, single mother with one child under five years, living with her parents, and offered a job at (a) £60 a week, (b) £80 a week, and (c) £100 a week, assuming fares to work and child-care costs totalling £50 a week.

Mrs. Gillian Shephard

[holding answer 5 June 1990]: The information is listed in the table. It should be noted that the results in the table 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.

Replacement ratios
Gross earnings per week £ Community charge £350 per cent. Community charge £450 per cent.
60 56 56
80 54 54
100 51 52

Notes:

1. The methods and assumptions are those used in the published Tax/Benefit Model Tables but in this example it has been assumed that no rent is payable.

2. Rounded to the nearest per cent.

Sir Ian Gilmour

To ask the Secretary of State for Social Security what will be the effect of a community charge levied at(a) £350 and (b) £450 on the replacement ratios, expressed as out-of-work spending power divided by in-work spending power, of an unemployed man with non-earning wife and two children under five years, a mortgage of £40,000 and work expenses averaging £10 a week, assuming offer wages of £120, £140, £160, £180, £200, £220, £240, £260, £280 and £300 a week.

Mrs. Gillian Shephard

[holding answer 5 June 1990]: The information is listed in the table. It should be noted that the results in the table 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.

Replacement ratios
Gross earnings per week £ Community charge £350 per cent. Community charge £450 per cent.
120 264 268
140 240 243
160 221 223
180 177 178
200 144 145
220 119 123
240 102 105
260 89 91
280 78 80
300 70 72

Notes:

1. The methods and assumptions are those used in the published Tax/Benefit Model Tables but in this example mortgage interest payments were calculated assuming payment over 25 years and an interest rate of 15.4 per cent.

2. Rounded to the nearest per cent.