HC Deb 12 July 1971 vol 821 cc21-2W
80 and 81. Mr. Ralph Howell

asked the Chancellor of the Exchequer (1) if he is aware that a married man with four children, earning £25 per week, has a take-home pay of £24.92 when at work and £29 when unemployed, and can be better off unemployed than at work for seven weeks per year ; and what corrective action he intends to take ;

(2) if he is aware that a married man with no children, earning £15 per week, has a take-home pay of £12.77 when at work and £15.40 when unemployed, and can be better off unemployed than at work for 10 weeks per year; and what corrective action he intends to take.

Mr. Patrick Jenkin

Yes. I would refer my hon. Friend to the answer I give him on 6th July.

Mr. Ralph Howell

asked the Chancellor of the Exchequer whether he will tabulate all instances of families of 0–4 children, under 11 years of age, earning £15, £20, £25, £30, £35, and £40, where the take-home pay when out of work can exceed the take-home pay when at work, stating for how many weeks in a year this state of affairs can prevail.

Mr. Patrick Jenkin

The examples are as follows :

Number of children Weekly wage at which take home pay when out of work can exceed take home pay when at work Maximum number of weeks for which take home pay when out of work can exceed take home pay when at work
£
None 15 10
20 20
1 20 10
25 18
2 20 5
25 14
30 20
3 25 10
30 17
4 15 25
25 7
30 14

Notes

1. These examples take account of the increases in flat rate unemployment benefit and graduated National Insurance contributions in the National Insurance Bill.

2. It has been assumed that the man is not contracted out of the graduated pensions scheme.