HC Deb 25 July 1991 vol 195 cc853-7W
Sir Ian Gilmour

To ask the Secretary of State for Social Security, further to his reply to the hon. Member for Derby, South (Mrs. Beckett)Official Report, 13 May, columns 31–34, if he will repeat the figures including (a) columns for the two-parent families showing their net incomes after rent and community charge when on income support, (b) earnings levels for all three families of £180, £190 and £200 a week, (c) child care costs for the lone mother of £70 a week for the four-year-old child, and £20 a week for the six-year-old child and (d) comparable figures for all three families assuming they are owner-occupiers with mortgages of £40,000.

Mr. Jack

[holding answer 22 July 1991]: Income-related benefits such as family credit and housing benefit provide valuable help for many working families and make it worth while taking up and retaining employment. The social security reforms, and subsequent changes in tax and national insurance have virtually eliminated the worst effects of the poverty trap, so that it is now almost impossible for someone to be worse off as a result of an increase in gross pay.

Lone parent with 2 children aged 4 and 6 with mortgage and child care costs
Earnings per week Tax NI Net mortgage interest CC Child care costs Net earnings FC CHB HB CCB Disposable income
60.00 0.00 1.76 75.00 9.40 90.00 -116.16 57.70 21.10 0.00 0.00 -37.36
70.00 0.00 2.66 75.00 9.40 90.00 -107.06 54.14 21.10 0.00 0.00 31.82
80.00 0.00 3.56 75.00 9.40 90.00 -97.96 47.77 21.10 0.00 0.00 -29.09
90.00 0.00 4.46 75.00 9.40 9000 -88.86 41.40 21.10 0.00 0.00 -26.36
100.00 .89 5.36 75.00 9.40 90.00 -80.65 35.65 21.10 0.00 0.00 -23.90
110.00 3.39 6.26 75.00 9.40 90.00 -74.05 31.03 21.10 0.00 0.00 21.92
120.00 5.89 7.16 75.00 9.40 90.00 -67.45 26.41 21.10 0.00 0.00 -19.94
130.00 8.39 8.06 75.00 9.40 90.00 -60.85 21.79 21.10 0.00 0.00 -17.96
140.00 10.89 8.96 75.00 9.40 90.00 -54.25 17.17 21.10 0.00 0.00 -15.98
150.00 13.39 9.86 75.00 9.40 90.00 -47.65 12.55 21.10 0.00 0.00 -14.00
160.00 15.89 10.76 75.00 9.40 90.00 41.05 7.93 21.10 0.00 0.00 -12.02
170.00 18.39 11.66 75.00 9.40 90.00 -34.45 3.31 21.10 0.00 0.00 -10.04
180.00 20.89 12.56 75.00 9.40 90.00 -27.85 0.00 21.10 0.00 0.00 -6.75
190.00 23.39 13.46 75.00 9.40 90.00 -21.25 0.00 21.10 0.00 0.00 -0.15
200.00 25.89 14.36 75.00 9.40 90.00 -14.65 0.00 21.10 0.00 0.00 6.45

Lone parent with 2 children aged 4 and 6 with mortgage
Earnings per week Tax NI Net mortgage interest CC Net earnings FC CHB HB CCB Disposable income
60.00 0.00 1.76 75.00 9.40 -26.16 57.70 21.10 0.00 0.00 52.64
70.00 0.00 2.66 75.00 9.40 -17.06 54.14 21.10 0.00 0.00 58.18
80.00 0.00 3.56 75.00 9.40 -7.96 47.77 21.10 0.00 0.00 60.91
90.00 0.00 4.46 75.00 9.40 1.14 41.40 21.10 0.00 0.00 63.64
100.00 .89 5.36 75.00 9.40 9.35 35.65 21.10 0.00 0.00 66.10
110.00 3.39 6.26 75.00 9.40 15.95 31.03 21.10 0.00 0.00 68.08
120.00 5.89 7.16 75.00 9.40 22.55 26.41 21.10 0.00 0.00 70.06
130.00 8.39 8.06 75.00 9.40 29.15 21.79 21.10 0.00 0.00 72.04
140.00 10.89 8.96 75.00 9.40 35.75 17.17 21.10 0.00 0.00 74.02
150.00 13.39 9.86 75.00 9.40 42.35 12.55 21.10 0.00 0.00 76.00
160.00 15.89 10.76 75.00 9.40 48.95 7.93 21.10 0.00 0.00 77.98
170.00 18.39 11.66 75.00 9.40 55.55 3.31 21.10 0.00 0.00 79.96
180.00 20.89 12.56 75.00 9.40 62.15 0.00 21.10 0.00 0.00 83.25

The information requested is set out 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. All other assumptions are as detailed in the published tax benefit model tables.

This reply also updates and replaces figures previously supplied, applying the assumptions in the tax benefit model tables recently published, and corrects typographical errors in the Official Report,13 May, columns 31–34.

Lone parent with two children aged 4 and 6 £
(a) not working, after one year on benefit
Income Support 57.65
Child Benefit 21.10
Rent Rebate 26.03
Community Charge Benefit 3.76
Total Net Income 113.81
Net Income After Rent and Community Charge 83.03
(b) earning £20 per week from part-time earnings
Earnings 20.00
Income Support 52.65
Child Benefit 21.10
Rent Rebate 26.03
Community Charge Benefit 3.76
Total Net Income 128.81
Net Income After Rent and Community Charge 98.03

Notes:

1. Child Benefit includes One Parent Benefit.

Net Income after Rent and Community Charge includes the notional value of free school meals and welfare foods.

Earnings per week Tax NI Net mortgage interest CC Net earnings FC CHB HB CCB Disposable income
190.00 23.39 13.46 75.00 9.40 68.75 0.00 21.10 0.00 0.00 89.85
200.00 25.89 14.36 75.00 9.40 75.35 0.00 21.10 0.00 0.00 96.45

Lone parent with 2 children aged 4 and 6 and child care costs Net income after rent and community charge on income supplement 83.08
Earnings per week Tax NI Rent CC Child care Net earnings EC CHB HB CCB Disposable income
60.00 0.00 1.76 26.03 4.70 90.00 -62.49 57.70 21.10 8.03 0.00 24.34
70.00 0.00 2.66 26.03 4.70 90.00 -53.39 54.14 21.10 4.43 0.00 26.28
80.00 0.00 3.56 26.03 4.70 90.00 -44.29 47.77 21.10 2.66 0.00 27.24
90.00 0.00 4.46 26.03 4.70 90.00 -35.19 41.40 21.10 0.88 0.00 28.19
100.00 0.89 5.36 26.03 4.70 90.00 -26.98 35.65 21.10 0.00 0.00 29.77
110.00 3.39 6.26 26.03 4.70 90.00 -20.38 31.03 21.10 0.00 0.00 31.75
120.00 5.89 7.16 26.03 4.70 90.00 -13.78 26.41 21.10 0.00 0.00 33.73
130.00 8.39 8.06 26.03 4.70 90.00 -7.18 21.79 21.10 0.00 0.00 35.71
140.00 10.89 8.96 26.03 4.70 90.00 -0.58 17.17 21.10 0.00 0.00 37.69
150.00 13.39 9.86 26.03 4.70 90.00 6.02 12.55 21.10 0.00 0.00 39.67
160.00 15.89 10.76 26.03 4.70 90.00 12.62 7.93 21.10 0.00 0.00 41.65
170.00 18.39 11.66 26.03 4.70 90.00 19.22 3.31 21.10 0.00 0.00 43.63
180.00 20.89 12.56 26.03 4.70 90.00 25.82 0.00 21.10 0.00 0.00 46.92
190.00 23.39 13.46 26.03 4.70 90.00 32.42 0.00 21.10 0.00 0.00 53.52
200.00 25.89 14.36 26.03 4.70 90.00 39.02 0.00 21.10 0.00 0.00 60.12

Lone parent with 2 children aged 4 and 6 Net income after rent and community charge on income support: 83.08
Earnings per week Tax NI Rent CC Net earnings EC CHB HB CCB Disposable income
60.00 0.00 1.76 26.03 4.70 27.51 57.70 21.10 8.03 0.00 114.34
70.00 0.00 2.66 26.03 4.70 36.61 54.14 21.10 4.43 0.00 116.28
80.00 0.00 3.56 26.03 4.70 45.71 47.77 21.10 2.66 0.00 117.24
90.00 0.00 4.46 26.03 4.70 54.81 41.40 21.10 0.88 0.00 118.19
100.00 0.89 5.36 26.03 4.70 63.02 35.65 21.10 0.00 0.00 119.77
110.00 3.39 6.26 26.03 4.70 69.62 31.03 21.10 0.00 0.00 121.75
120.00 5.89 7.16 26.03 4.70 75.76 26.41 21.10 0.00 0.00 123.73
130.00 8.39 8.06 26.03 4.70 82.82 21.79 21.10 0.00 0.00 125.71
140.00 10.89 8.96 26.03 4.70 89.42 17.17 21.10 0.00 0.00 127.69
150.00 13.39 9.86 26.03 4.70 96.02 12.55 21.10 0.00 0.00 129.67
160.00 15.89 10.76 26.03 4.70 102.62 7.93 21.10 0.00 0.00 131.65
170.00 18.39 11.66 26.03 4.70 109.22 3.31 21.10 0.00 0.00 133.63
180.00 20.89 12.56 26.03 4.70 115.82 0.00 21.10 0.00 0.00 136.92
190.00 23.39 13.46 26.03 4.70 122.42 0.00 21.10 0.00 0.00 143.52
200.00 25.89 14.36 26.03 4.70 129.02 0.00 21.10 0.00 0.00 150.12

Married couple with 2 children aged 4 and 6 Net income after rent and community charge on income support: 100.29
Earnings per week Tax NI Rent CC Net earnings FC CHB HB CCB Disposable income
60.00 0.00 1.76 26.03 9.40 22.81 57.70 15.50 10.08 3.84 109.93
70.00 0.00 2.66 26.03 9.40 31.91 54.14 15.50 6.48 3.01 111.04
80.00 0.00 3.56 26.03 9.40 41.01 47.77 15.50 4.71 2.60 111.59
90.00 0.00 4.46 26.03 9.40 50.11 41.40 15.50 2.93 2.19 112.13
100.00 .89 5.36 26.03 9.40 58.32 35.65 15.50 1.33 1.82 112.62
110.00 3.39 6.26 26.03 9.40 64.92 31.03 15.50 0.00 1.52 112.97
120.00 5.89 7.16 26.03 9.40 71.52 26.41 15.50 0.00 1.23 114.66
130.00 8.39 8.06 26.03 9.40 78.12 21.79 15.50 0.00 0.93 116.34
140.00 10.89 8.96 26.03 9.40 84.72 17.17 15.50 0.00 0.63 118.02
150.00 13.39 9.86 26.03 9.40 91.32 12.55 15.50 0.00 0.33 119.70
160.00 15.89 10.76 26.03 9.40 97.92 7.93 15.50 0.00 0.04 121.39
170.00 18.39 11.66 26.03 9.40 104.52 3.31 15.50 0.00 0.00 123.33
180.00 20.89 12.56 26.03 9.40 111.12 0.00 15.50 0.00 0.00 126.62
190.00 23.39 13.46 26.03 9.40 117.72 0.00 15.50 0.00 0.00 133.22
200.00 25.89 14.36 26.03 9.40 124.32 0.00 15.50 0.00 0.00 139.82

Married couple with 2 children aged 4 and 6 with mortgage Net income after mortgage and community charge on income support: 100.29
Earnings per week Tax NI Net mortgage interest CC Net earnings FC CHB HB CCB Disposable income
60.00 0.00 1.76 75.00 9.40 -26.16 57.70 15.50 0.00 3.84 50.88
70.00 0.00 2.66 75.00 9.40 -17.06 54.14 15.50 0.00 3.01 55.59
80.00 0.00 3.56 75.00 9.40 -7.96 47.77 15.50 0.00 2.60 57.91
90.00 0.00 4.46 75.00 9.40 1.14 41.40 15.50 0.00 2.19 60.23
100.00 0.89 5.36 75.00 9.40 9.35 35.65 15.50 0.00 1.82 62.32
110.00 3.39 6.26 75.00 9.40 15.95 31.03 15.50 0.00 1.52 64.00
120.00 5.89 7.16 75.00 9.40 22.55 26.41 15.50 0.00 1.23 65.69
130.00 8.39 8.06 75.00 9.40 29.15 21.79 15.50 0.00 0.93 67.37
140.00 10.89 8.96 75.00 9.40 35.75 17.17 15.50 0.00 0.63 69.05
150.00 13.39 9.86 75.00 9.40 42.35 12.55 15.50 0.00 0.33 70.73
160.00 15.89 10.76 75.00 9.40 48.95 7.93 15.50 0.00 0.04 72.42
170.00 18.39 11.66 75.00 9.40 55.55 3.31 15.50 0.00 0.00 74.36
180.00 20.89 12.56 75.00 9.40 62.15 0.00 15.50 0.00 0.00 77.65
190.00 23.39 13.46 75.00 9.40 68.75 0.00 15.50 0.00 0.00 84.25
200.00 25.89 14.36 75.00 9.40 75.35 0.00 15.50 0.00 0.00 90.85

Married couple with 3 children aged 3, 8 and 11 Net income after rent and community charge on income support: 123.07
Earnings per week Tax NI Net mortgage interest CC Net earnings FC CHB HB CCB Disposable income
60.00 0.00 1.76 26.03 9.40 22.81 73.80 22.75 7.74 3.30 130.40
70.00 0.00 2.66 26.03 9.40 31.91 70.24 22.75 4.14 2.47 131.51
80.00 0.00 3.56 26.03 9.40 41.01 63.87 22.75 2.37 2.06 132.06
90.00 0.00 4.46 26.03 9.40 50.11 57.50 22.75 0.59 1.65 132.60
100.00 .89 5.36 26.03 9.40 58.32 51.75 22.75 0.00 1.28 134.10
110.00 3.39 6.26 26.03 9.40 64.92 47.13 22.75 0.00 0.98 135.78
120.00 5.89 7.16 26.03 9.40 71.52 42.51 22.75 0.00 0.69 137.47
130.00 8.39 8.06 26.03 9.40 78.12 37.89 22.75 0.00 0.39 139.15
140.00 10.89 8.96 26.03 9.40 84.72 33.27 22.75 0.00 0.09 140.83
150.00 13.39 9.86 26.03 9.40 91.32 28.65 22.75 0.00 0.00 142.72
160.00 15.89 10.76 26.03 9.40 97.92 24.03 22.75 0.00 0.00 144.70
170.00 18.39 11.66 26.03 9.40 104.52 19.41 22.75 0.00 0.00 146.68
180.00 20.89 12.56 26.03 9.40 111.12 14.79 22.75 0.00 0.00 148.66
190.00 23.39 13.46 26.03 9.40 117.72 10.17 22.75 0.00 0.00 150.64
200.00 25.89 14.36 26.03 9.40 124.32 5.55 22.75 0.00 0.00 152.62

Married couple with 3 children aged 3, 8 and 11 with mortgage Net income after mortgage and community charge on income support: 123.07
Earnings per week Tax NI Net mortgage interest CC Net earnings FC CHB HB CCB Disposable income
60.00 0.00 1.76 75.00 9.40 -26.16 73.80 22.75 0.00 3.30 73.69
70.00 0.00 2.66 75.00 9.40 -17.06 70.24 22.75 0.00 2.47 78.40
80.00 0.00 3.56 75.00 9.40 -7.96 63.87 22.75 0.00 2.06 80.72
90.00 0.00 4.46 75.00 9.40 1.14 57.50 22.75 0.00 1.65 83.04
100.00 0.89 5.36 75.00 9.40 9.35 51.75 22.75 0.00 1.28 85.13
110.00 3.39 6.26 75.00 9.40 15.95 47.13 22.75 0.00 0.98 86.81
120.00 5.89 7.16 75.00 9.40 22.55 42.51 22.75 0.00 0.69 88.50
130.00 8.39 8.06 75.00 9.40 29.15 37.89 22.75 0.00 0.39 90.18
140.00 10.89 8.96 75.00 9.40 35.75 33.27 22.75 0.00 0.09 91.86
150.00 13.39 9.86 75.00 9.40 42.35 28.65 22.75 0.00 0.00 93.75
160.00 15.89 10.76 75.00 9.40 48.95 24.03 22.75 0.00 0.00 95.73
170.00 18.39 11.66 75.00 9.40 55.55 19.41 22.75 0.00 0.00 97.71
180.00 20.89 12.56 75.00 9.40 62.15 14.79 22.75 0.00 0.00 99.69
190.00 23.39 13.46 75.00 9.40 68.75 10.17 22.75 0.00 0.00 101.67
200.00 25.89 14.36 75.00 9.40 75.35 5.55 22.75 0.00 0.00 103.65

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