HC Deb 18 November 1976 vol 919 cc739-40W
Mr. Ralph Howell

asked the Secretary of State for Social Services if he will confirm that a man with a wife and two children, whose rent is £4.72, rates £1.90 and work expenses £1.75 per week and whose previous wage was £55 per week, would have a net weekly spending power of £47.66 when unemployed and in receipt of tax refunds and £37.16 after all refunds have been paid; and what his net weekly spending power would be (a) if he returned to work and his work expenses were £1.75 and (b) if he became long-term unemployed and received supplementary benefit only.

Mr. Orme

The tables included in my reply to the hon. Gentleman on 15th October 1976—[Vol. 917, c.245–50]—set out the information requested in the first two parts of his Question. If the man concerned became long-term unemployed and received supplementary benefit only, the family would have a net weekly spending power, after payment of rent and rates, of £30.02.

Mr. Ralph Howell

asked the Secretary of State for Social Services if he will compare the net weekly spending power of a man with a wife and two children whose rent is £4.72 per week and rates £1.90 per week who is earning the basic agricultural wage of £36.50, with his net weekly spending power when unemployed and (a) receiving tax refunds and (b) after tax refunds are no longer payable.

Mr. Orme

On the assumptions made by the hon. Gentleman, the man's net weekly spending power would be (a) £34.28 when working and (b) £33.22 during weeks 3–28 of unemployment, assuming that payment of family income supplement continued throughout this period. Tax refunds, where payable, would be approximately £10.50 a week.

Mr. Ralph Howell

asked the Secretary of State for Social Services what tax and national insurance contribution would be deducted from a man with a wife and two children whose rent was £4.72 and rates £1.90, if his wage was £36.64 per week, bearing in mind that he would be left with £36.64 spending power per week if he were premanently unemployed.

Mr. Orme

On the assumptions made by the hon. Gentleman, the deductions for income tax and national insurance contributions for a married man with two children aged 4 and 6, and weekly earnings of £36.64, would be £2.36 and £2.11 respectively, leaving the family with a net weekly spending power of approximately £34.28, after taking other relevant benefits into account. If the man were permanently unemployed and receiving supplementary benefit, the family would have a net weekly spending power, after payment of rent and rates, of £30.02.