HC Deb 21 July 1975 vol 896 cc91-2W
Mr. Ralph Howell

asked the Secretary of State for Social Services what increase in his net weekly spending power, defined as in the reply to the hon. Member for Norfolk, North on 10th June 1975, column 156, would be received by a man with a wife and two children, three children, and four children, respectively, earning £25, £30, £35, £40, £45 and £50 if his gross weekly wage were increased by £6.

Mr. O'Malley

The following table shows the change in net weekly incomes brought about by a £6 increase in earnings for the original earnings levels and types of family referred to below:

Original Gross Earnings Man with wife and
2 children 3 children 4 children
£25 -0.38 +0.35 +1.09
£30 -0.52 -0.70 -0.42
£35 +2.19 -0.03 +0.14
£40 +2.19 +2.19 +0.69
£45 +2.19 +2.19 +2.19
£50 +2.60 +2.02 +2.19
A negative figure indicates a reduction in income. The assumptions are those given in my reply to the hon. Member on 10th June.—[Vol. 893, c. 156–164.]. It is also assumed that all means-tested benefits are immediately adjusted. In practice this would not happen. The figures given are seriously misleading if quoted out of the context of these assumptions.

Mr. Ralph Howell

asked the Secretary of State for Social Services if she will publish tables, on the same basic assumptions as the written replies to the hon. Member for Norfolk, North, of 1st February 1974, Official Report, columns 181–5, 8th April 1974, Official Report, columns 63–8, and 15th May 1974, columns 464–8, for a week's work after 39 weeks at the appropriate rate and when unemployed after 39 weeks at the appropriate rate, assuming a gross weekly wage of £60, £65, £70, £75, £80, £90 and £100.

Mr. O'Malley,

pursuant to his reply [Official Report, 8th July 1975; Vol. 895, c. 109–12], gave the following additional information:

The tax refunds shown in table (b) (Unemployed) would be payable for all family sizes and all earnings levels, for 14 weeks.