HC Deb 25 May 1973 vol 857 cc198-9W
Mr. Ralph Howell

asked the Chancellor of the Exchequer what is the total net weekly income of a man with a wife and three children under 11, assuming a weekly wage of £15, £20, £25, £30 and £35, respectively, and that the previous year's pay was the same allowing for tax repayments and welfare benefits, for a week's work after 39 weeks of work at the appropriate rate, when unemployment after 39 weeks of 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 Number of weeks when take-home pay when out of work could exceed take-home pay when at work
£ £ £
15 15.75 18.80
FIS 4.80 4.80
20.55 23.60 up to 52
20 20.49 19.58
FIS 2.30 2.30
22.79 21.88 NIL
25 24.34 30.70 up to 4
30 27.59 32.40 up to 11
35 30.84 33.18 up to 16

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.

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 Benefit 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. A man earning £15 a week could of course only have a higher income when out of work than when in work for the maximum period of 52 weeks if he became unemployed immediately after becoming entitled to FIS.