HC Deb 28 June 1976 vol 914 cc61-3W
Mr. Ralph Howell

asked the Secretary of State for Social Services what is the net weekly income—assuming rent at £4.72 and rates at £1.90 and taking into account tax refunds where appropriate together with tax and national insurance and any means-tested benefits to which there may be entitlement—of an unemployed married man with two children not over 11 years of age whose previous earnings were £65, and who became unemployed in week 30 of the tax year (a) during the first 22 weeks of unemployment, (b) from week 22 to 26 of unemployment and (c) during the second six months of unemployment, assuming that his wages have moved in line with the Department of Employment index during the previous 22 months, and using new rates of benefit wherever possible.

Mr. Orme

The information cannot be meaningfully provided in the form requested. However, the table below gives the net weekly spending power of

NET WEEKLY SPENDING POWER-MAN, WIFE AND TWO CHILDREN AGED 4 AND 6 RENT assumed to £4.72 a week; rates assumed to £1.90 a week
Unemployment benefit and earnings related supplement Family allowance Tax refund Rent rebate Rate rebate Free school meals Free welfare milk Net weekly spending power
£ £ £ £ £ £ £ £
(A) 37.49 1.50 10.50 2.77 1.12 46.76
(B) 37.49 1.50 2.77 1.12 36.26
(C) 27.50 1.50 4.72 1.86 0.75 0.60 30.31

Notes:

(A) Both tax refunds and earnings-related supplement payable.

(B) Tax refunds no longer payable.

(C) Tax refunds and earnings-related supplement no longer payable.

Mr. Ralph Howell

asked the Secretary of Sate 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, c. 464–70) 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 £40; if he will bring the earlier information up to date in line wih tax changes announced in the Chancellor's Budget, with increases in unemployment benefit, and with any

an unemployed married man with two children who formerly earned £65 a week and who becomes unemployed whilst (a) earnings-related supplement (ERS) and tax refunds are due, (b) ERS alone is due and (c) neither ERS nor tax refunds are payable. It has been assumed that unemployment benefit is at November 1976 levels, but current means tests for housing allowances, free school meals and free welfare milk have had to be used, since changes in the qualifying levels of these benefits have not yet been announced. The tax changes announced in the Budget have been taken into account, and on that basis, tax refunds would be due for 18 weeks. However, the hon. Member will be aware from my reply on 21st June—[Vol. 913, c. 395–8]—that tax refunds cannot realistically be regarded as forming part of an unemployed man's regular weekly income since he does not automatically receive these refunds; and that, when payments are made, they usually occur at monthly intervals. In the light of these explanations, I would emphasise that the net income figures must be treated with considerable reserve.

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 assumptions as in the written reply given to the hon. Member for Norfolk North, on 15th May 1974 (Official Report, c. 464–70) 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 £70; 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 occured since May 1974; and if he will show for how many weeks the unemployed person will receive income tax rebates;

(3) 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, c. 464–70), 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 £50; 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;

(4) 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, c. 464–70), 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 £60; 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.

Mr. Orme

For the reasons to which I referred in the last paragraph of my reply to the hon. Member on 21st June, I do not consider that it would be justifiable to make the many calculations for which the hon. Member has asked.—[Vol. 913, c.395–8.]