§ Mr. Ralph Howellasked the Secretary of State for Social Services (1) if he will publish a table, on the same basic assumptions as in the Written reply given to the hon. Member for Norfolk, North on 15th May 1974, Official Report,s columns 464 to 470, showing the net weekly spending power for a week's work after 39 weeks and when unemployed after 39 weeks for a married man with a wife and three children, with gross weekly earnings of £30; if he will bring the earlier information up to date in line with tax changes announced in the Chancellor's Budget, with increases in unemployment benefit, and with any other relevant changes which may have occurred since May 1974; and if he will show for how many weeks the unemployed person will receive income tax rebates;
(2) if he will publish a table, on the same basic assumption as in the Written reply given to the hon. Member for Norfolk, North on 15th May 1974, Official Report, columns 464 to 470, showing the net weekly spending power for a week's work after 39 weeks and when unemployed after 39 weeks, for a married man with a wife and three children with gross weekly earnings of £80; if he will bring the earlier information up to date in line with tax changes announced in the Chancellor's Budget, with increases in unemployment benefit, and with any other relevant changes which may have occurred since May 1974; and if he will show for how many
396WJanuary 1976 and June 1976, respectively, in Watford, St. Albans, Slough, Windsor, Kidderminster, Edmonton and East Ham.
§ Mr. DeakinsThe information for the health districts in which the places named are situated is as follows:
weeks the unemployed person will receive income tax rebates.
§ Mr. OrmeThe information is given in the tables below. The assumptions used in the tables differ from those used in the reply to the hon. Member's Question of 15th May 1974—[Vol. 873, cc.464–470.] in the following respects: rent of £4.72, rates of £1.90 and expenses associated with work—where relevant—£1.75 all weekly figures. Supplementary benefit is not payable in either case. Rates of unemployment benefit are those payable from November 1976, an earnings-related supplement where applicable—is that which would be paid in week 41 of the current tax year, i.e. derived from reckonable earnings in the 1975–76 tax year recently ended. The tax changes announced in the Budget have been taken into account, as have increases in the Family Income Supplement—operative from 20th July 1976. Current means tests for rent and rates rebates, free school meals and free welfare milk have had to be applied, however, since changes in the qualifying levels for these benefits have not yet been announced, and the figures of net incomes shown in the table are therefore subject to amendment. Tax refunds would be payable for all the remaining weeks of the income tax year; but it would be misleading to regard these as forming part of an unemployed man's regular weekly income since, where a man has severed his connection with his employer, he does not automatically receive weekly tax refunds but has to apply to the Inland Revenue for them, the applications normally being made at 397W monthly intervals. The calculations also depend on a man having claimed all the benefits to which he is entitled.
This reply supplies the figures which the hon. Member has requested, but I still hold to the view I expressed when
NET WEEKLY SPENDING POWER—MAN, WIFE AND 3 CHILDREN AGED 3, 6 AND 8 EMPLOYED £ a week Gross earnings FAM NI contributions Tax FIS Rent rebate Rate rebate Free school meals Free welfare milk Net income 30 … … … 3.00 1.73 — 7.50 3.52 1.36 1.50 0.60 37.38 80 … … … 3.00 4.60 16.39 — — — — — 53.64
UNEMPLOYED £ a week Gross earnings FAM UB Tax* FIS Rent rebate Rate rebate Free school meals Free welfwre milk Net income 30 … … … 3.00 30.05 Nil 7.50 3.51 1.36 1.50 0.60 40.90 80 … … … 3.00 42.23 -11.60 — 2.44 1.00 — — 53.65 * A negative figure indicates a tax refund.