HC Deb 14 May 1976 vol 911 cc313-5W
Mr. Ralph Howell

asked the Secretary of State for Social Services what is the minimum level of gross weekly earnings necessary in order to give the parent of a one-parent family financial benefit from taking a full-time job rather than remaining on supplementary benefit, assuming (a) two children aged between 5 and 11 years and (b) three children aged 3, 5 and 7 years and assuming rent at £4.83, rates at £1.80, and expenses associated with going to work which take into account the cost of child minders while the parent is at work as well as travel.

Mr. Orme

Full-time gross earnings of £9.70 would currently be necessary for the two-child family and £10.80 for the three-child family.

The cost of child-minders has not been taken into account because no reliable average figure is known.

Work expenses are taken as £1.75 a week.

NET WEEKLY SPENDING POWER—SINGLE PARENT WITH 2 CHILDREN
Date Wages £25 Wages £30 Wages £35 Supplementary Benefit
March 1976 29.86 29.78 29.90 19.90
August 1976 32.40 32.88 32.74 19.90

come supplement entitlement level and with the supplementary benefit level, excluding rent and rates, using the new rates of benefit announced on 7th April, and tax households (a) as proposed in the Finance Bill and (b) assuming acceptance of the 3 per cent. pay ceiling.

Mr. Orme

Following is the information:

It is assumed that all benefits for which the parent is eligible have been claimed.

Mr. Ralph Howell

asked the Secretary of State for Social Services if he will publish a table comparing the net weekly spending power, as defined in the reply to the hon. Member for Norfolk, North on 10th June 1975, column 156, of a one-parent family with two children aged between 5 and 11 years, before and after the introduction of child interim benefit, assuming (a) weekly earnings of £25, £30 and £35 and (b) that the family was on supplementary benefit.

Mr. Orme

The full effects of child interim benefit in combination with other benefits will not be seen before 20th July 1976 because until then child interim benefit is not counted as income for family income supplement purposes.

The following table, therefore, compares the position in March 1976, before the introduction of child interim benefit, with that in August 1976, when the adjustment with FIS has taken place.

The children are assumed to be aged 5 and 10 years.

Rent and rate levels used are as follows:

March Rent £4.33 Rates £1.73
July Rent £4.72 Rates £1.90

Work expenses are £1 in March, £1.75 in July.

The calculations for August assume implementation of all proposed tax changes, and take account of the increased prescribed amounts for FIS.