HC Deb 05 June 1992 vol 208 cc658-9W
Mr. Flynn

To ask the Secretary of State for Social Security how many people face a marginal tax/benefit withdrawal rate of 70 per cent. or more; and how many of them are in receipt of family credit.

Mr. Burt

In 1992–93, it is projected that 490,000 heads of benefit units receiving income-related benefits, where at least one partner works 16 hours a week or more, face marginal deduction rates of 70 per cent. or over. It is estimated that 375,000 of them would receive family credit.

Projections are based on three years pooled family expenditure survey data uprated to 1992–93 prices, taxes and benefit levels. They do not take into account disability working allowance, or transitional protection associated with the change in the family credit/income support hours rule.

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