HC Deb 22 January 1998 vol 304 cc664-5W
Ms Hewitt

To ask the Secretary of State for Social Security what is the net income of (i) married couple with one earner and two children, (ii) a lone parent with two children and (iii) a single person with no children, on gross earnings of(a) half of average earnings, (b) three-quarters of average earnings, (c) average earnings and (d) twice average earnings allowing for child benefit; and what is the net income of the same groups after allowing for council tax. [23929]

Mr. Keith Bradley

The information is in the tables.

Net income of a married couple with one earner and two children
£
Gross earnings Net income before Council Tax Net income after Council Tax
LA tenant Private tenant LA tenant Private tenant
Half of average earnings 183.80 163.35 163.35 151.75 151.75
Three-quarters of average earnings 275.70 191.38 167.98 179.78 156.38
Average earnings 367.60 252.95 222.64 241.35 211.04
Twice average earnings 735.20 499.83 469.52 488.23 457.92
Net income of a lone parent with two children
£
Gross earnings Net income before Council Tax Net income after Council Tax
LA Tenant Private Tenant LA Tenant Private Tenant
Half of average earnings 183.80 164.61 164.33 155.81 155.53
Three-quarters of average earnings 275.70 197.43 168.96 188.63 160.16
Average earnings 376.60 259.00 228.69 250.20 219.89
Twice average earnings 735.20 505.88 475.57 497.08 466.77
Net income of a single person with no children
£
Gross earnings Net income before Council Tax Net income after Council Tax
LA Tenant Private Tenant LA Tenant Private Tenant
Half of average earnings 183.80 111.17 87.06 103.67 79.56
Three-quarters of average earnings 275.70 172.75 148.64 165.25 141.14
Average earnings 367.60 234.32 210.21 226.82 202.71
Twice average earnings 735.20 481.20 457.09 473.70 449.59

1. The weekly average earnings figure of £367.60 has been taken from "Labour Market Trends", published by the Office for National Statistics. It represents national weekly average earnings for all full-time employees at April 1997.

2. For family types with two children, one child is assumed to be under five and the other between five and 10-years-old.

3. The net income figures in the table reflect each family's net weekly income after income tax, National Insurance Contributions, housing costs and all income from benefits (including Child Benefit) have been taken into account.

4. Net incomes also depend on whether or not the family are local authority (LA) or private tenants, since this affects the amount of rent payable and also (possibly) the amount of housing benefit received. Net incomes for both LA tenants and private tenants are included in the table.

5. Each family type is assumed to live in local authority or private rented property appropriate to its size, and to pay average amounts of rent and council tax at April 1997.

6. No Council Tax Benefit is payable in any of the situations covered: earnings are too high.