HC Deb 13 May 1991 vol 191 cc30-3W
Mrs. Beckett

To ask the Secretary of State for Social Security (1) 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 11 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 1991;

(2) 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 1991 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.

Married couple with 2 children aged 4 and 6
Earnings (£s)
60 70 80 90 100 110 120 130 140 150 160 170
Deductions from earnings
Tax 0.00 0.00 0.00 0.00 2.28 4.78 7.28 9.78 12.28 14.78 17.28 19.78
National insurance 2.18 3.08 3.98 4.88 5.78 6.68 7.58 8.48 9.38 10.28 11.18 12.08
Rent 25.60 25.60 25.60 25.60 25.60 25.60 25.60 25.60 25.60 25.60 25.60 25.60
Community charge 9.62 9.62 9.62 9.62 9.62 9.62 9.62 9.62 9.62 9.62 9.62 9.62
Net earnings 22.60 31.70 40.80 49.90 56.72 63.32 69.92 76.52 83.12 89.72 96.32 102.92
Additional income from benefits
Family credit 57.70 54.43 48.06 41.69 36.92 32.30 27.68 23.06 18.44 13.82 9.20 4.58
Child benefit 15.50 15.50 15.50 15.50 15.50 15.50 15.50 15.50 15.50 15.50 15.50 15.50
Housing benefit 9.92 6.13 4.36 2.58 1.25 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Community charge benefit 4.08 3.20 2.79 2.38 2.08 1.78 1.48 1.19 0.89 0.59 0.30 0.00
Disposable income 109.80 110.96 111.51 112.05 112.47 112.90 114.58 116.27 117.95 119.63 121.32 123.00
Married couple with 3 children aged 3, 8 and 11
Earnings (£s) 60 70 80 90 100 110 120 130 140 150 160 170
Tax 0.00 0.00 0.00 0.00 2.28 4.78 7.28 9.78 12.28 14.78 17.28 19.78
NI 2.18 3.08 3.98 4.88 5.78 6.68 7.58 8.48 9.38 10.28 11.18 12.08
Rent 25.60 25.60 26.60 25.60 25.60 25.60 25.60 25.60 25.60 25.60 25.60 25.60
CC 9.62 9.62 9.62 9.62 9.62 9.62 9.62 9.62 9.62 9.62 9.62 9.62
Net Earnings 22.60 31.70 40.80 49.90 56.72 63.32 69.92 76.52 83.12 89.72 96.32 102.92
FC 73.80 70.53 64.16 57.79 53.02 48.40 43.78 39.16 34.54 29.92 25.30 20.68
CHB 22.75 22.75 22.75 22.75 22.75 22.75 22.75 22.75 22.75 22.75 22.75 22.75
HB 7.58 3.79 2.02 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
CCB 3.54 2.66 2.25 1.84 1.54 1.24 0.94 0.65 0.35 0.05 0.00 0.00
Disposable Income 130.27 131.43 131.98 132.28 134.03 135.71 137.79 139.08 140.76 142.44 144.37 146.35
NI = National Insurance.
CC = Community Charge.
CCB = Community Charge Benefit.
HB = Housing Benefit.
FC = Family Credit.
CHB = Child Benefit.
Lone parent with two children aged 4 and 6
Per cent.
(a) not working, after one year on benefit
Income Support 57.65
Child Benefit1 21.10
Rent Rebate 25.60
Community Charge Benefit 3.85
Total Net Income2 113.15
Net Income after Rent and Community Charge 82.74

Mr. Jack

[holding answer 30 April 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 virtually impossible for someone to be worse off as a result of an increase in gross pay.

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. A community charge level of £250 per person, per annum is assumed. All other assumptions are as in the published tax/benefit model tables.

Per cent.
(b) earning £20 per week from part-time earnings
Income Support 52.65
Child Benefit1 21.10
Rent Rebate 25.60
Community Charge Benefit 3.85
Earnings 20.00
Per cent.
Total Net Income2 128.15
Net Income after Rent and Community Charge 97.74

(c) Lone parent with two children aged 4 and 6, working full time
Earnings
£60 £70 £80 £90 £100 £110 £120
Tax 0.00 0.00 0.00 0.00 2.28 4.78 7.28
National Insurance 2.18 3.08 3.98 4.88 5.78 6.68 7.58
Rent 25.60 25.60 25.60 25.60 25.60 25.60 25.60
Community Charge 4.81 4.81 4.81 4.81 4.81 4.81 4.81
NET EARNINGS 27.40 36.51 45.61 54.71 61.53 68.13 74.73
Family Credit 57.70 54.43 48.06 41.69 36.92 32.30 27.68
Child Benefit and One Parent Benefit 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Housing Benefit 7.87 4.08 2.31 0.54 0.00 0.00 0.00
Community Charge Benefit 21.10 21.10 21.10 21.10 21.10 21.10 21.10
DISPOSABLE INCOME 114.08 116.12 117.08 118.04 119.55 121.53 123.51

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