HC Deb 08 April 1974 vol 872 cc61-7W
Mr. Ralph Howell

asked the Chancellor of the Exchequer if he will publish a table, on the same basis as the figures given in the written reply to the hon. Member for Norfolk. North on 1st

MAN, WIFE AND TWO CHILDREN AGED 4 AND 8
(A) In full time work
£ per week
Earnings FAM NI Tax FIS Rent Rebate Rate Rebate Free School Meals Free Welfare Milk Net Income
20 … 0.90 1.41 — 1.60 4.06 0.85 0.60 0.385 19.785
25 … 0.90 1.66 1.20 — 3.21 — 0.60 0.385 20.035
35 … 0.90 2.16 4.20 — 1.44 — — — 23.78
40 … 0.90 2.41 5.70 — 0.59 — — — 26.18
(B) Unemployed and in receipt of ERS
£ per week
Normal Earnings FAM Unemployment Benefit Tax Rebate FIS Rent Rebate Rate Rebate Free School Meals Free Welfare Milk Net Income
20 … 0.90 17.85 — 1.60 4.60 0.85 0.60 0.385 20.18
25 … 0.90 21.25 6.30 — 4.15 — — — 26.00
35 … 0.90 22.60 6.30 — 3.81 — — — 27.01
40 … 0.90 22.60 6.30 — 3.81 — — — 27.01

Notes: The assumptions used are given in the Written Reply to the hon. Member on 1st February 1974 (Official Report Cols. 181–185). Earnings are assumed to be paid in week 41 of the 1973–74 tax year and the unemployed man is assumed to be in his third week of unemployment in that week.

Mr. Ralph Howell(1)

asked the Chancellor of the Exchequer if he is aware, on the basis of the written reply to the hon. Member for Norfolk, North on 1st February 1974, that in terms of net weekly disposable income a man with a wife and two children, who normally earns either £25, £30, £35 or £40 a week, will in every case be worse off financially if he changes from three-day to four-day working; and if he will take action to change this situation;

(2) if he is aware, on the basis of the written reply to the hon. Member for Norfolk, North on 1st February 1974, that, for a man with a wife and two children who normally earns £25 per week, the net weekly disposable income is only 9p more for a five-day week than for working a three-day week; and if he will take action to change this situation.

Mr. John Morris

The available figures are given below:

February 1974, showing the net weekly disposable income of a man with a wife and two children (a) for a week's work after 41 weeks and (b) when unemployed after 41 weeks and when qualifying for earnings-related benefit, assuming a gross weekly wage of £20, £25, £35 and £40.

Dr. Gilbert

The figures are:

Dr. Gilbert

We are aware of the situation to which the hon. Member refers, which arises because of the combined operation of tax deductions and the withdrawal of means-tested benefits as earnings increase. We shall be keeping the matter under consideration.

Mr. Ralph Howell

asked the Chancellor of the Exchequer (1) if he will compare the total net weekly spending power of a man with a wife and four children under 11 years of age with a weekly wage of £20 per week with persons in similar family circumstances earning (a) £25 per week, (b) £30 per week, (c) £35, per week, and (d) £40 per week, assuming that in all cases the previous year's earnings were at the same rate and allowing for all relevant tax payments or repayments, for all possible welfare benefits and for rent and/or rate rebates, and including an estimated 60p per week as expenses associated with work, in the following circumstances: for a week's work after 39 weeks at the appropriate rate, for a four-day week due to short-time working in industry, and when unemployed after 39 weeks at the appropriate rate;

(2) if he will compare the total net weekly spending power of a man with a wife and three children under 11 years of age with a weekly wage of £20 per week with persons in similar family circumstances earning (a) £25 per week, (b) £30 per week, (c) £35 per week, and (d) £40 per week, assuming that in all cases the previous year's earnings were at the same rate and allowing for all relevant tax payments or repayments, for all possible welfare benefits and for rent and/or rate rebates, and including an estimated 60p per week as expenses associated with work, in the following circumstances: for a week's work after 39

(1) MAN, WIFE AND 4* CHILDREN (UNDER 11)
A full week's work
£
Normal Earnings FAM NI Tax FIS Rent Rebate Rate Rebate Free School Meals Free Welfare Milk Net Income
20 … 2.90 1.41 — 3.10 4.69 0.97 1.20 0.77 25.02
25 … 2.90 1.66 0.20 0.60 4.06 0.72 1.20 0.77 26.19
30 … 2.90 1.91 1.65 — 2.97 — 1.20 — 26.31
35 … 2.90 2.16 3.15 — 2.12 — — — 27.51
40 … 2.90 2.41 4.65 — 1.27 — — — 29.91
Working a four day week
£ per week
Normal Earnings FAM UB NI TAX FIS Rent Rebate Rate Rebate Free School Meals Free Welfare Milk Net Income
20 … — 2.90 1.20 — 3.10 5.00 0.97 1.20 0.77 21.54
25 … 2.90 — 1.41 −1.30 0.60 5.00 0.72 1.20 0.77 23.88
30 … 2.90 — 1.61 −0.15 — 4.46 — 1.20 0.77 24.67
35 … 2.90 — 1.81 1.05 — 3.46 — 1.20 0.77 26.27
40 … 2.90 — 2.01 2.25 — 2.63 — 1.20 — 27.27
Unemployed
£ pere week
Normal Earnings FAM UB NI Tax FIS Rent Rebate Rate Rebate Free School Meals Free Welfare Milk Net Income
20 … 2.90 18.20 — — 3.10 5.00 0.97 1.20 0.77 25.54
25 … 2.90 22.18 — — 0.60 4.77 0.72 1.20 0.77 26.54
30 … 2.90 25.20 — −7.35 — 4.16 — — — 33.01
35 … 2.90 25.20 — −7.35 — 4.16 — — — 33.01
40 … 2.90 25.20 — −7.35 — 4.16 — — — 33.01
* 2 aged under 5.2 aged 5−10.

weeks at the appropriate rate, and for a four-day week due to short-time working in industry, and when unemployed after 39 weeks at the appropriate rate;

(3) if he will compare the total net weekly spending power 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 family circumstances earning (a) £25 per week, (b) £30 per week, (c) £35 per week, and (d) £40 per week, assuming that in all cases the previous year's earnings were at the same rate and allowing for all relevant tax payments or repayments, for all possible welfare benefits and for rent and/or rate rebates, and including an estimated 60p per week as expenses associated with work, in the following circumstances: for a week's work after 39 weeks at the appropriate rate, for a four-day week due to short-time working in industry, and when unemployed after 39 weeks at the appropriate rate.

Dr. Gilbert

The figures are:

MAN, WIFE AND 3* CHILDREN (UNDER 11
A full week's work
£ per week Free
Normal Earnings FAM NI Tax FIS Rent Rebate Rate Rebate Free School Meals Free Welfare Milk Net Income
20 … 1.90 1.41 — 2.30 4.39 0.97 1.20 0.385 22.535
25 … 1.90 1.66 0.75 — 3.71 0.43 1.20 0.385 23.015
30 … 1.90 1.91 2.25 — 2.63 — 0.60 — 23.67
35 … 1.90 2.16 3.75 — 1.78 — — — 25.57
40 … 1.90 2.41 5.25 — 0.93 — — — 27.97
Working a four day week
£ per week
Normal Earnings FAM UB NI Tax FIS Rent Rebate Rate Rebate Free School Meals Free Welfare Milk Net Income
20 … 1.90 — 1.20 — 2.30 5.00 0.97 1.20 0.385 19.355
25 … 1.90 — 1.41 −0.75 — 4.96 0.43 1.20 0.385 21.015
30 … 1.90 — 1.61 0.45 — 3.96 — 1.20 0.385 22.185
35 … 1.90 — 1.81 1.65 — 2.97 — 1.20 — 23.41
40 … 1.90 — 2.01 2.85 — 2.29 — — — 24.13
Unemployed
£ per week Free
Normal Earnings FAM UB NI Tax FIS Rent Rebate Rate Rebate Free School Meals Free Welfare Milk Net Income
20 … 1.90 17.85 — — 2.30 4.93 0.97 1.20 0.385 22.935
25 … 1.90 21.18 — −6.75 — 4.67 0.43 — — 28.33
30 … 1.90 23.90 — −6.75 — 3.99 — — — 29.34
35 … 1.90 23.90 — −6.75 — 3.99 — — — 29.34
40 … 1.90 23.90 — −6.75 — 3.99 — — — 29.34
* 1 aged under 5,2 aged 5−10.
(3)MAN, WIFE AND 2 CHILDREN (Under 11)
(A) In full time work
£ per week Free
Normal Earnings FAM NI Tax FIS Rent Rebate Rate Rebate Free School Meals Free Welfare Milk Net Income
20 … 0.90 1.41 — 1.60 4.06 0.85 0.60 0.385 19.785
25 … 0.90 1.66 1.20 — 3.21 — 0.60 0.385 20.035
30 … 0.90 1.91 2.70 — 2.29 — — — 21.38
35 … 0.90 2.16 4.20 — 1.44 — — — 23.78
40 … 0.90 2.41 5.70 — 0.59 — — — 26.18
Working a four day week
£ per week
Normal Earnings FAM UB NI Tax FIS Rent Rebate Rate Rebate Free School Meals Free Welfare Milk Net Income
20 … 0.90 — 1.20 — 1.60 5.00 0.85 0.60 0.385 16.93
25 … 0.90 — 1.41 0.30 — 4.46 — 0.60 0.385 17.43
30 … 0.90 — 1.61 0.90 — 3.46 — 0.60 0.385 19.635
35 … 0.90 — 1.81 2.10 — 2.63 — — — 20.42
40 … 0.90 — 2.01 3.30 — 1.95 — — — 22.34
Unemployed
£ per week
Normal Earnings FAM UB NI Tax FIS Rent Rebate Rate Rebate Free School Meals Free Welfare Milk Net Income
20 … 0.90 17.85 — — 1.60 4.60 0.85 0.60 0.385 20.18
25 … 0.90 21.25 — −6.30 — 4.15 — — — 26.00
30 … 0.90 22.60 — −6.30 — 3.81 — — — 27.01
35 … 0.90 22.60 — −6.30 — 3.81 — — — 27.01
40 … 0.90 22.60 — −6.30 — 3.81 — — — 27.01
Notes: The assumptions used are given in the Written Reply to the hon. Member on 1st February 1974 (Official Report cols. 181–185). In order to maintain comparability with the earlier Question the reference week used is week 41 of the 1973–74 tax year, i.e. the unemployed man is assumed to he in his third week of unemployment in that week.