HC Deb 10 June 1975 vol 893 cc156-63W
Mr. Ralph Howell

asked the Secretary of State for Social Services if she will publish a table, on the same basic assumptions as in the Writtten Reply given to the hon. Member for Norfolk, North on 15th May 1974—c. 464–70—showing the net weekly spending power for a week's work after 39 weeks and when unemployed after 39 weeks at the appropriate wage rate for a single person, for a married man with a wife and no children, and for a married man with a wife and one child, two children, three children and four children, assuming in each case gross weekly earnings of £20, £25, £30, £35, £40, £45, £55 and £60, respectively; if she will bring the earlier information up to date in line with tax changes announced in the Chancellor's recent Budget, with increases in unemployment benefit, and with any other relevant changes which may have occurred since May 1974; and if she will show, in each case, for how many weeks the unemployed person will receive income tax rebates.

Mr. O'Malley

The information requested is set out in the tables below. The assumptions used are: rent of £6, rates of £2; expenses associated with work—where relevant—75p (all weekly figures); no tax allowances other than personal allowances; post-April 1975 national insurance contributions; earnings in previous years the same as current earnings. When employed, the man is assumed to be working in week 41 of the current tax year; when unemployed he is assumed to have become unemployed in week 39 of the same tax year, but the tables show the position in week 41, the first week in which earnings-related supplement to unemployment benefit would be payable. Unemployment benefit is at the rates which my right hon. Friend announced on 22nd May would come into force in the week beginning 17th November 1975. Net income is defined as: earnings or unemployment benefit (UB) as appropriate, plus family allowances (FAM), family income supplement

(1) SINGLE MAN
Unemployed
£ per week
Normal Earnings UB Tax* Rent Rebate Rate Rebate Net Income No. of weeks tax refund continues
20 … … … 14.70 -4.75 4.76 1.57 17.78 14
25 … … … 16.43 -4.75 4.33 1.44 18.95 14
30 … … … 17.95 -4.75 3.95 1.31 19.96 14
35 … … … 18.73 -4.90 3.76 1.25 20.64 14
40 … … … 19.51 -4.90 3.57 1.19 21.17 14
45 … … … 20.29 -4.90 3.44 1.15 21.78 14
55 … … … 20.47 -4.90 3.41 1.13 21.91 14
60 … … … 20.47 -4.90 3.41 1.13 21.91 14
* A negative figure indicates a tax refund.

Employed
£ per week
Normal Earnings Tax N.I. Rent Rebate Rate Rebate Net Income
20 … … … … … 2.45 1.10 3.49 1.16 12.35
25 … … … … … 4.20 1.37 2.64 0.86 14.18
30 … … … … … 5.95 1.65 1.79 0.56 16.00
35 … … … … … 7.70 1.92 0.94 0.26 17.83
40 … … … … … 9.45 2.20 — — 19.60
45 … … … … … 11.20 2.47 — — 22.58
55 … … … … … 14.70 3.02 — — 28.53
60 … … … … … 16.45 3.30 — — 31.50

(2) MAN, WIFE, NO CHILDREN
Unemployed
£ per week
Normal Earnings UB Tax* Rent Rebate Rate Rebate Net Income No. of weeks tax refund continues
20 … … … 18.00 -6.50 5.79 1.90 24.19 4
25 … … … 22.10 -6.50 4.76 1.57 26.33 14
30 … … … 24.85 -6.50 4.08 1.35 28.78 14
35 … … … 25.63 -6.50 3.88 1.29 29.30 14
40 … … … 26.41 -6.50 3.69 1.23 29.83 14
45 … … … 27.19 -6.65 3.52 1.17 30.53 14
55 … … … 27.37 -6.65 3.50 1.16 30.68 14
60 … … … 27.37 -6.65 3.50 1.16 30.68 14
* A negative figure indicates a tax refund.

(FIS), rent and rate rebates, and the value of free school meals and welfare milk; less tax—or plus tax refunds—national insurance contributions (NI), rent, rates and work expenses, if relevant. Supplementary benefit is not payable in any of the cases covered in the tables.

The comparisons implied in the tables are not, however, representative because, in particular, it would be very unusual for weekly earnings to conform to the assumption of no change in them for a period of nearly three years, which the hon. Gentleman made in his earlier Question.

Employed
£ per week
Normal Earnings Tax N.I. Rent Rebate Rate Rebate Net Income
20 … … … … … 0.50 1.10 5.29 1.74 16.68
25 … … … … … 2.25 1.37 4.04 1.34 18.01
30 … … … … … 4.00 1.65 3.05 1.00 19.65
35 … … … … … 5.75 1.92 2.20 0.70 21.48
40 … … … … … 7.35 2.20 1.35 0.40 23.45
45 … … … … … 9.10 2.47 0.50 0.10 25.28
55 … … … … … 12.60 3.02 — — 30.63
60 … … … … … 14.35 3.30 — — 33.60

(3) MAN, WIFE AND 1 CHILD (UNDER 5)
Unemployed
£ per week
Normal Earnings UB Tax* FIS Rent Rebate Rate Rebate Free Welfare milk Net Income No. of weeks tax refund continues
20 … 21.50 — 5.80 4.48 1.48 0.42 25.68 —
25 … 22.10 -8.15 3.30 4.95 1.63 0.42 32.55 4
30 … 26.52 -8.25 0.80 4.47 1.48 0.42 33.94 12
35 … 29.13 -8.25 — 4.02 1.33 0.42 35.15 14
40 … 29.91 -8.25 — 3.82 1.27 — 35.25 14
45 … 30.69 -8.25 — 3.63 1.21 — 35.78 14
55 … 30.87 -8.40 — 3.59 1.20 — 36.06 14
60 … 30.87 -8.40 — 3.59 1.20 — 36.06 14
* A negative figure indicates a tax refund.

Employed
£ per week
Normal Earnings Tax N.I. FIS Rent Rebate Rate Rebate Free Welfare milk Net Income
20 … … … — 1.10 5.80 4.85 1.60 0.42 22.82
25 … … … 0.70 1.37 3.30 4.22 1.40 0.42 23.52
30 … … … 2.45 1.65 0.80 3.60 1.20 0.42 23.17
35 … … … 4.20 1.92 — 2.89 0.95 — 23.97
40 … … … 5.95 2.20 — 2.04 0.65 — 25.79
45 … … … 7.70 2.47 — 1.19 0.35 — 27.62
55 … … … 11.20 3.02 — — — — 32.03
60 … … … 12.95 3.30 — — — — 35.00

(4) MAN, WIFE, 2 CHILDREN (1 CHILD UNDER 5, 1 AGED 5–10)
Unemployed
£ per week
Normal Earnings FAM UB Tax* FIS Rent Rebate Rate Rebate Free School Meals Free Welfare milk Net Income No. of weeks tax refund cont.
20 … 1.50 23.50 — 6.80 4.36 1.45 0.75 0.42 30.78 —
25 … 1.50 23.50 — 4.30 4.99 1.65 0.75 0.42 29.11 —
30 … 1.50 26.52 -8.95 1.80 4.86 1.60 0.75 0.42 38.40 8
35 … 1.50 30.94 -8.95 — 4.20 1.39 0.75 0.42 40.15 14
40 … 1.50 31.91 -8.95 — 3.97 1.31 0.75 — 40.39 14
45 … 1.50 32.69 -8.95 — 3.77 1.25 — — 40.16 14
55 … 1.50 32.87 -9.10 — 3.72 1.24 — — 40.43 14
60 … 1.50 32.87 -9.10 — 3.72 1.24 — — 40.43 14
* A negative figure indicates a tax refund.

Employed
£ per week
Normal Earnings FAM Tax* N.I. FIS Rent Rebate Rate Rebate Free School Meals Free Welfare milk Net Income
20 … … … 1.50 — 1.10 6.80 5.24 1.72 0.75 0.42 26.58
25 … … … 1.50 — 1.37 4.30 4.61 1.52 0.75 0.42 27.98
30 … … … 1.50 1.60 1.65 1.80 3.99 1.32 0.75 0.42 27.78
35 … … … 1.50 3.35 1.92 — 3.32 1.10 — — 26.90
40 … … … 1.50 5.10 2.20 — 2.47 0.80 — — 28.72
45 … … … 1.50 6.85 2.47 — 1.62 0.50 — — 30.55
55 … … … 1.50 10.50 3.02 — — — — — 34.23
65 … … … 1.50 12.25 3.30 — — — — — 37.20

(5) MAN, WIFE, 3 CHILDREN (1 AGED UNDER 5, 2 AGED 5–10)
Unemployed
£ per week
Normal Earnings FAM UB Tax* FIS Rent Rebate Rate Rebate Free School Meals Free Welfare milk Net Income No. of weeks tax refund continues
20 … 3.00 25.50 — 7.80 4.25 1.41 1.50 0.42 35.88 —
25 … 3.00 25.50 — 5.30 4.87 1.61 1.50 0.42 34.20 —
30 … 3.00 26.52 -9.65 2.80 5.25 1.73 1.50 0.42 42.87 4
35 … 3.00 30.94 -9.65 0.30 4.76 1.57 1.50 0.42 44.14 11
40 … 3.00 33.91 -9.65 — 4.10 1.36 1.50 0.42 45.94 14
45 … 3.00 34.69 -9.65 — 3.90 1.29 1.50 — 46.03 14
55 … 3.00 34.87 -9.80 — 3.85 1.28 — — 44.80 14
60 … 3.00 34.87 -9.80 — 3.85 1.28 — — 44.80 14
* A negative figure indicates a tax refund. Employed

Employed
£ per week
Normal Earnings FAM Tax* N.I. FIS Rent Rebate Rate Rebate Free School Meals Free Welfare milk Net Income
20 … … … 3.00 — 1.10 7.80 5.62 1.85 1.50 0.42 30.34
25 … … … 3.00 — 1.37 5.30 5.00 1.65 1.50 0.42 31.75
30 … … … 3.00 1.05 1.65 2.50 4.37 1.45 1.50 0.42. 32.09
35 … … … 3.00 2.80 1.92 0.30 3.75 1.25 1.50 0.42 31.75
40 … … … 3.00 4.55 2.20 — 2.90 0.95 — — 31.35
45 … … … 3.00 6.30 2.47 — 2.05 0.65 — — 33.18
55 … … … 3.00 9.80 3.02 — 0.35 0.05 — — 36.83
60 … … … 3.00 11.55 3.30 — — — — — 39.40

(6) MAN, WIFE AND 4 CHILDREN (2 AGED UNDER 5,2 AGED 5–10)
Unemployed
£ per week
Normal Earnings FAM UB Tax* FIS Rent Rebate Rate Rebate Free School Meals Free Welfare milk Net Income No. of weeks tax refund cont.
20 … 4.50 27.50 — 8.50 4.21 1.40 1.50 0.84 40.45 —
25 … 4.50 27.50 — 6.30 4.77 1.57 1.50 0.84 38.98 —
30 … 4.50 27.50 — 3.80 5.39 1.77 1.50 0.84 37.30 1
35 … 4.50 30.94 -10.35 1.30 5.15 1.70 1.50 0.84 48.28 8
40 … 4.50 35.36 -10.35 — 4.37 1.45 1.50 0.84 50.37 14
45 … 4.50 36.69 -10.35 — 4.04 1.34 1.50 — 50.42 14
55 … 4.50 36.87 -10.50 — 3.99 1.33 1.50 — 50.69 14
60 … 4.50 36.87 -10.50 — 3.99 1.33 — — 49.19 14
*A negative figure indicates a tax refund.

Employed
£ per week
Normal Earnings FAM Tax N.I. FIS Rent Rebate Rate Rebate Free School Meals Free Welfare milk Net Income
20 … … … 4.50 — 1.10 8.50 6.00 2.00 1.50 0.84 33.49
25 … … … 4.50 — 1.37 6.30 5.39 1.77 1.50 0.84 35.18
30 … … … 4.50 0.20 1.65 3.80 4.76 1.57 1.50 0.84 36.37
35 … … … 4.50 1.90 1.92 1.30 4.14 1.37 1.50 0.84 36.08
40 … … … 4.50 3.65 2.20 — 3.34 1.11 1.50 — 35.85
45 … … … 4.50 5.40 2.47 — 2.49 0.81 — — 36.18
55 … … … 4.50 8.75 3.02 — 0.79 0.21 — — 39.98
60 … … … 4.50 10.50 3.30 — — — — — 41.95

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