§ Mr. Ralph Howellasked the Chancellor of the Exchequer what is the total net weekly income of a man with a wife and two children under 11 years of age, assuming a weekly wage of £15, £20, £25 and £30, respectively, and that the previous year's pay was at the same rates, allowing for relevant tax repayments and any welfare benefits in the following circumstances: for a week's work after 39 weeks at the appropriate rate and when unemployed after 39 weeks' employment and when qualifying for earnings-related supplement; and how these figures compare with those for the year 1970–71.
§ Mr. Patrick JenkinThe figures are:
Weekly wage Net income for one week at work after 39 weeks at work Net income for the first week of unemployment for which earnings-related unemployment benefit paid 1971–72 1970–71 1971–72 1970–71 £15 16.82 14.72 16.53 13.45 £20 19.13 17.91 17.35 20.00 £25 22.47 21.15 24.75 21.70 £30 25.70 24.35 26.10 23.05 Notes:
(1) Net income has been calculated on the basis that the period of 39 weeks at work is the first 39 weeks of the tax year. Because earnings-related unemployment benefit is not paid for the first 12 days of unemployment the figures given for the week of unemployment are those for week 42 of the tax year.
(2) Family allowance of £0.90 and, where appropriate, National Insurance (including graduated pension) contributions and income tax have been taken into account in the figures, but not the possibility that some supplementary benefit payment might be made during unemployment. The net income figures for the man earning £15 a week in 1971–72 (both for the week at work and for the week of unemployment) include a family income supplement payment of £2.10. (A man who becomes entitled to family income supplement will receive it for the period of the award regardless of whether he becomes unemployed during that period.) The 1971–72 figures take into account the new rates of National Insurance contributions and unemployment benefit which were announced on 31st March, 1971.