§ Mr. Ralph Howellasked the Chancellor of the Exchequer what is the total net weekly income of a man with a wife and three children under 11 years of age, assuming a weekly wage of £15, £20, £25, £30, £35 and £40, respectively, and that the previous year's pay was the same, allowing for tax repayments and welfare benefits, (1) for a week's work after 39 weeks of work at the appropriate rate, and (2) when unemployed 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.
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§ Mr. NottThe following are the figures:
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 30v70 Up to 4 £30 27.59 32.40 Up to 11 £35 30.84 33.18 Up to 16 £40 34.09 33.96 Nil Column A shows the man's net weekly income 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.
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.
§ Mr. Ralph Howellasked the Chancellor of the Exchequer if he will tabulate the total net weekly income of a man with a wife and no children, 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, namely, 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 246W weeks of the year the take-home pay when out of work could exceed the take-home pay when at work.
§ Mr. NottThe figures are:
Weekly wage A B C £15 13.85 13.26 — £20 17.09 20.00 Up to 11 £25 20.34 21.73 Up to 18 £30 23.59 23.25 — £35 26.84 24.03 — 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 when take-home pay when out of work could exceed take-home pay when at work.
The figures take account of national insurance contributions but they do not include any supplementary benefit that might be receivable during unemployment.
§ Mr. Ralph Howellasked the Chancellor of the Exchequer (1) if he is aware that a man with a wife and two children under 11 years of age with a wage of £25 per week has a net weekly income of £22.89 when at work and £28.03 for the first seven weeks when unemployed; and if he will take steps to rectify this situation;
(2) if he is aware that a man with a wife and two children under 11 years of age whose weekly wage is £30 a week has £3.41 more spending power in the first 14 weeks of unemployment than when at work; and if he will take steps to rectify this situation.
§ Mr. NottI would refer my hon. Friend to my reply to his Question of 17th January 1974.—[Vol. 867, c135.]
§ Mr. Ralph Howellasked the Chancellor of the Exchequer if he will tabulate the components of the net weekly income of a man with a wife and two children under 11 years of age, assuming a weekly wage of £25 per week and that the previous year's pay was at the same rates, showing relevant tax payments, repayments and any welfare benefits in the 247W following circumstances: (a) for a week's work after 39 weeks at the appropriate rate, and (b) when unemployed after 39 weeks' employment and when qualifying for earnings-related benefit.
§ Mr. NottThe figures are:
A £ Weekly wage 25.00 Family allowances 0.90 25.90 National Insurance Contributions: Flat rate 0.84 Graduated 0.82 Income tax 1.35 Net income 22.89 B £ Unemployment Benefit: Flat rate 15.60 Earnings-related supplement 5.33 Family allowances 0.90 Income tax refund 6.20 Net income 28.03 Column A shows the components of the net weekly income when at work for week 40 in the tax year.
Column B shows the components for week 42 on the assumption that this is the third consecutive week of unemployment.
§ Mr. Ralph Howellasked the Chancellor of the Exchequer if he will tabulate the components of the net weekly income of a man with a wife and one child under 11 years of age, assuming a weekly wage of £25 per week and that the previous year's pay was at the same rates, showing relevant tax payments, repayments and any welfare benefits in the following circumstances: (a) for a week's work after 39 weeks at the appropriate rate, and (b) when unemployed after 39 weeks' employment and when qualifying for earnings-related benefit.
§ Mr. NottThe figures are:
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A £ Weekly wage 25.00 National insurance contributions: Flat rate 0.84 Graduated 0.82 Income tax 1.95 Net income 21.39
B £ Unemployment benefit: Flat rate 14.20 Earnings-related supplement 5.33 Income tax refund 5.70 Net income 25.23 Column A shows the components of the net weekly income when at work for week 40 in the tax year.
Column B shows the components for week 42 on the assumption that this is the third consecutive week of unemployment.