§ Mr. Banksasked the Chancellor of the Exchequer what is the average take-home pay for a man with a wife and four children; and what total benefits he would receive if unemployed.
§ Mr. Robert SheldonAverage gross weekly earnings of full-time adult men in April 1976 are estimated as £71.60.(1) Assuming the tax rates and allowances proposed for 1976–77, a married man with four children(2) earning £71.60 a week, will pay on average £11.63 a week in income tax and £4.12 in national insurance contributions, leaving take-home pay of £55.85.
202WEntitlement to benefits whilst unemployed will depend, inter alia, on his national insurance contribution record, family income and family circumstances. Typical benefit on initial unemployment would comprise flat-rate unemployment benefit of £27.50 together with an earnings related supplement at the maximum rate of £10.27 per week. Application could also made for tax refunds which may be paid for a limited period at a level of about £13.50 weekly, dependent on the ages of the children in the family. Additionally there could be eligibility for rent rebates, it appropriate, and rate rebates. In certain circumstances there could exceptionally be entitlement from the outset of unemployment to supplementary benefit, free school meals, free welfare milk, remission of National Health Service charges or exemption from prescription charges for himself and his wife. Family allowance of £4.50 would be payable whether in employment or unemployment.
(1) Based on the April 1975 New Earnings Survey updated by the monthly index of average earnings.
(2) Two not over 11, one over 11 but not over 16, one over 16.