HC Deb 10 December 1976 vol 922 cc377-8W
Mr. Ralph Howell

asked the Secretary of State for Social Services if he will confirm that for families with four children whose earnings increased from £50 in November 1975 to £55 in November 1976, net weekly spending power during sickness or unemployment is now £13.44 higher than it was in November 1975, so long as they are in receipt of tax refunds, and £8.59 higher than in November 1975 during the first six months of sickness or unemployment, whether or not they are eligible for tax refunds, compared with an increase in spending power of £5.47 for families who are at work.

Mr. Orme

During weeks 3 to 28 of unemployment, a married man with four children aged 3, 8, 11 and 16 with previous earnings of £55 who became unemployed now would have a net weekly spending power—that is, after he had met his rent and rates—£8.59 greater than a man in similar family circumstances who had become unemployed a year ago after previously earning £50 if, in the former case, he had a rent of £5.38, rates of £2.18 and work expenses of £1.75 a week and in the latter case a rent of £4.94, rates of £1.88 and work expenses of 75p a week, and assuming in both cases that he had full entitlement to flat-rate benefit and earnings-related supplement, and that he had taken up all the means-tested benefits to which he was entitled. If income tax refunds were payable in addition, the figure would be £11.19. The net weekly spending power of a family of this size with earnings of £55 in November 1976 would be £5.27 greater than that of a similar family in November 1975 with earnings of £50 a week.