§ Mr. LoveTo ask the Chancellor of the Exchequer what representations he has received from(a) friendly societies, (b) building societies and (c) co-operative societies on the individual savings account and its regulation; and if he will make a statement. [53904]
§ Mr. Geoffrey RobinsonThe Inland Revenue has received over 100 responses to the draft regulations for the individual savings account, which were issued for consultation in May. Six of these were from individual building societies and two from friendly societies, and
Tax, National Insurance, Child Benefit and Family Credit payments at multiple of gross earnings Gross earnings (£ per week) 150 200 250 300 400 2 earner married couple with 1 child under 4 National Insurance 3.88 9.76 14.76 19.76 29.76 Income Tax 0.00 2.38 12.25 22.75 44.55 Child Benefit 11.45 11.45 11.45 11.45 11.45 Family Credit 24.97 0.00 0.00 0.00 0.00 Tax and NICs less Child Benefit and Family Credit as a percentage of gross earnings -21.69 0.35 6.22 10.35 15.71 Net income 182.54 199.31 234.44 268.94 337.14 Equivalised Net Income 154.69 168.90 198.68 227.92 285.71 2 earner married couple with 1 child aged 4 and 1 child aged 6 National Insurance 3.88 9.76 14.76 19.76 29.76 Income Tax 0.00 2.38 12.25 22.75 44.55 Child Benefit 20.75 20.75 20.75 20.75 20.75 Family Credit 37.32 8.10 0.00 0.00 0.00 Tax and NICs less Child Benefit and Family Credit as a percentage of gross earnings -36.13 -8.35 2.50 7.25 13.39 Net income 204.19 216.71 243.74 278.24 346.44 Equivalised Net Income 146.90 155.90 175.35 200.17 249.24 Note:
The figures are calculated on the basis that all earnings are from employment and that there are no other sources of income
The Married Couples Allowance has been allocated to the person earning 60 per cent. of the total
The standard McClements scales have been used to determine equivalised income. This is the same process that is used in the DSS's Households Below Average Income publication
Some of these families may also be entitled to housing benefit and council tax benefit. However, as this will depend upon the composition of the housing costs (between mortgage payments, council tax, and rent) housing benefit and council tax benefit have been left out of these figures
298Wresponses were also received from the relevant representative bodies. No representations were received from co-operative societies. We are grateful for all the points made to us, which have been carefully considered.