HC Deb 28 November 1973 vol 865 cc156-7W
Mr. Ralph Howell

asked the Chancellor of the Exchequer if he will compare the total net weekly income of a man with a wife and two children under 11 years of age with a weekly wage of £20 per week with persons in similar circumstances earning (a) £25 per week, and (b) £35 per week, assuming that in all cases the previous year's earnings were at the same rate and allowing for relevant tax payments or repayments and welfare benefits in the following circumstances : for a week's work after 39 weeks at the appropriate rate and when unemployed after 39 weeks and when qualifying for earnings-related benefit, and in each case showing the net income when unemployed as a percentage of that when in employment.

Mr. Nott

The figures are :

Weekly wage A B C
£ £ Per cent.
£20 19.49 18.58
FIS 1.60 1.60
21.09 20.18 95.7
£25 22.89 28.03 122.5
£35 29.39 30.33 103.2
Column A shows the net weekly income when at work for week 40 in the tax year.

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

Column C shows column B as a percentage of column A. 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.

Family income supplement payments are shown separately and 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.

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