HC Deb 16 July 1973 vol 860 cc44-5W
Mr. Ralph Howell

asked the Chancellor of the Exchequer if he will tabulate the total net weekly income of a man with a wife and one child under 11 years of age, assuming a weekly wage of £15, £20, £25, £30 and £35, 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 many weeks of the year the take-home pay when out of work could exceed the take-home pay when at work.

Mr. Nott

The figures are:

Weekly Wage A B C
£ £p £p
15 13.85 14.20
FIS 3.30 3.30
17.15 17.50 Up to 52
20 18.19 19.78
FIS .80 .80
18.99 20.58 Up to 3
25 21.39 25.23 Up to 11
30 24.64 26.75 Up to 17
35 27.89 27.53

Column A shows the man's net weekly income when at work for week 40 in the tax year.

Column B shows the income from unemployment benefit, including earnings-related supplement for week 42 on the assumption that that is the third consecutive week of unemployment, and where appropriate tax refunds.

Column C shows the number of weeks for which take-home pay when out of work could exceed take-home pay when at work.

The figures take account of family allowances and national insurance contributions but they do not include any supplementary benefit that might be receivable during unemployment.

The rates of unemployment benefit and national insurance contributions are as proposed in the National Insurance and Supplementary Benefits Bill.

Family income supplement payments are shown separately. They appear under column B as well as column A because a man who becomes entitled to FIS will receive it for the period of the award regardless of whether he becomes unemployed during that period.

The rates of family income supplement are those proposed in the FIS (Computation) (No. 2) Regulations 1973.