§ Mr. Ralph Howellasked the Secretary of State for Social Services if he will now bring up to date the net weekly spending power figures published in reply to the hon. Member for Norfolk, North on 10th November 1975, column 540 (amended 8th March 1976, column 96 of the Official Report), showing the relative financial position in and out of work for each family grouping, on the assumption that earnings or previous earnings were £25, £35, £45, £55, £65, £73, £85 and £95 per week.
§ Mr. OrmeAn unjustifiable expenditure of staff time would be necessary to supply the information in exactly the form requested by the hon. Member. The tables below are extracted from the more readily available information and illustrate the situation for five family types
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TABLE 1 Single man—Rent £3.93, rates £1.58, work expenses £1.75 Employed £ Normal earnings Tax N.I. Rent rebate Rent rebate Net weekly spending power 25 … … … … … 3.80 1.44 2.03 0.83 15.36 35 … … … … … 7.30 2.01 0.33 0.23 18.99 45 … … … … … 10.80 2.59 — — 24.35 55 … … … … … 14.30 3.16 — — 30.28 65 … … … … … 17.80 3.74 — — 36.20 75 … … … … … 21.30 4.31 — — 42.13 85 … … … … … 24.80 4.89 — — 48.05 95 … … … … … 28.30 5.46 — — 53.98 at the earnings levels specified, both where the head of the family is employed and during weeks three to 28 of unemployment—that is, while earnings-related supplement is payable. The information related to November 1976; that is, it is based on the rates of benefit which will come into operation next month. It has been assumed that £73 in the Question should have been printed as £75.
The assumptions are the same as in the reply to the hon. Member on 10th November 1975—[Vol. 899, c. 540–46]—as amended on 8th March 1976—[Vol. 907, c. 96–102], except that tax refunds have not been included as part of net weekly spending power for the unemployed man. As has been previously explained to the hon. Member, it is not realistic to regard tax refunds as part of the regular weekly income of an unemployed person, since he does not automatically receive these refunds, and when payments are made, they usually occur at monthly intervals. Moreover the payment of tax refunds will depend not only on the point of time in a tax year but also on the number of weeks of employment during the tax year. The approximate weekly amount of such refunds where payable, would, however, be as follows:
Family type Approximate weekly amount of tax refund (1976–77 tax levels) Single person £4.95 Married couple £7.30 Married couple + 1 child aged 3 £9.35 Married couple +2 children aged 4 and 6 £10.50 Married couple +4 children gade 3, 8, 11 and 16 £13.45 Receipts of tax refunds may affect entitlement to free school meals but does not affect any other means-tested benefit.
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Unemployed (Weeks 3–28) £ Former earnings U.B. Rent rebate Rate rebate Net weekly spending power 25 … … … 16.46 3.93 1.47 16.35 35 … … … 19.22 3.32 1.25 18.28 45 … … … 20.66 2.96 1.14 19.25 55 … … … 21.90 2.65 1.04 20.08 65 … … … 23.14 2.34 0.94 20.91 75, 85, 95 … … … 23.17 2.34 0.94 20.94
TABLE 2 Married couple—Rent £3.93, rates £1.58, work expenses £1.75 Employed £ Normal earnings Tax N.I. Rent rebate Rate rebate Net weekly spending power 25 … … … … … 1.45 1.44 3.93 1.57 20.35 35 … … … … … 4.95 2.01 1.98 0.81 23.57 45 … … … … … 8.45 2.59 0.28 0.21 27.19 55 … … … … … 11.95 3.16 — — 32.63 65 … … … … … 15.45 3.74 — — 38.55 75 … … … … … 18.95 4.31 — — 44.48 85 … … … … … 22.45 4.89 — — 50.40 95 … … … … … 25.95 5.46 — — 56.33
Unemployed (Weeks 3–28) £ Former earnings U.B. Rent rebate Rate rebate Net weekly spending power 25 … … … 20.90 3.93 1.58 20.90 35 … … … 24.62 3.93 1.58 24.62 45 … … … 28.66 3.38 1.28 27.81 55 … … … 29.90 3.07 1.18 28.64 65 … … … 31.14 2.76 1.08 29.47 75, 85, 95 … … … 31.17 2.75 1.07 29.48
TABLE 3 Married couple with one child aged 3—Rent £4.51, rates £1.83, work expenses £1.75 Employed £ Normal earnings Tax N.I. F.I.S. Rent rebate Rate rebate Free welfare milk Net weekly spending power 25 … … … — 1.44 7.00 4.23 1.59 0.67 28.96 35 … … … 2.93 2.01 2.00 2.98 1.19 0.67 28.81 45 … … … 6.43 2.59 — 1.53 0.68 0.67 30.77 55 … … … 9.93 3.16 — — 0.08 — 33.90 65 … … … 13.43 3.74 — — — — 39.74 75 … … … 16.93 4.31 — — — — 45.67 85 … … … 20.43 4.89 — — — — 51.59 95 … … … 23.93 5.46 — — — — 57.52 248W249W
Unemployed (Weeks 3–28) £ Former earning U.B. F.I.S. Rent rebate Rate rebate Free welfare milk Net weekly spending power 25 … … 24.95 7.00 4.24 1.59 0.67 32.11 35 … … 24.95 2.00 4.51 1.83 0.67 27.62 45 … … 31.65 — 4.32 1.61 — 31.24 55 … … 33.95 — 3.74 1.43 — 32.78 65 … … 35.19 — 3.43 1.33 — 33.61 75, 85, 95 … … 35.22 — 3.43 1.33 — 33.64
TABLE 4 Married couple with two children aged 4 and 6—Rent £4.72, rates £1.90, work expenses £1.75. family allowance £1.50 Employed £ Normal earnings Tax N.I. F.I.S. Rent rebate Rate rebate Free school meals Free welfare milk Net weekly spending power 25 … … … — 1.44 8.50 4.72 1.82 0.75 0.67 33.15 35 … … … 1.78 2.01 3.50 3.69 1.42 0.75 0.67 34.37 45 … … … 5.28 2.59 — 2.31 0.96 0.75 0.67 34.95 55 … … … 8.78 3.16 — 0.61 0.36 — — 37.16 65 … … … 12.28 3.74 — — — — — 42–11 75 … … … 15.78 4.31 — — — — — 48.04 85 … … … 19.28 4.89 — — — — — 53.96 95 … … … 22.78 5.46 — — — — — 59.89
Unemployed (Weeks 3–28) £ Former earnings U.B. F.I.S. Rent rebate Rate rebate Free school meals Free welfare milk Net weekly spending power 25 … … 27.50 8.50 4.32 1.62 0.75 0.67 38.24 35 … … 27.50 3.50 4.72 1.90 0.75 0.67 33.92 45 … … 31.65 — 4.72 1.90 0.75 — 33.90 55 … … 36.50 — 4.20 1.58 — — 37.16 65 … … 37.74 — 3.88 1.48 — — 37.98 75, 55, 95 … … 37.77 — 3.88 1.47 — — 38.00
TABLE 5 Married couple with four children aged 3, 8, 11 and 16—Rent £5.38, rates £2.18, work expenses £1.75, family allowance £4.50 Employed £ Normal earnings Tax N.I. F.I.S. Rent rebate Rate rebate Free school meals Free welfare milk Net weekly spending power 25 … … … — 1.44 10.00 5.38 2.18 2.25 0.67 39.23 35 … … … — 2.01 6.50 5.27 1.96 2.25 0.67 44.83 45 … … … 2.32 2.59 1.50 4.02 1.56 2.25 0.67 45.28 55 … … … 5.82 3.16 — 2.32 0.99 1.50 0.67 46.69 65 … … … 9.32 3.74 — 0.62 0.39 — 0.67 48.81 75 … … … 12.82 4.31 — — — — — 53.06 85 … … … 16.32 4.89 — — — — — 58.98 95 … … … 19.82 5.46 — — — — — 64.91
Unemployed (Weeks 3–28) £ Former earning U.B. F.I.S. Rent rebate Rate rebate Free school meals Free welfare milk Net weekly spending power 25 … … 32.60 10.00 4.99 1.87 2.25 0.67 49.32 35 … … 32.60 6.50 5.38 2.15 2.25 0.67 46.49 45 … … 32.60 1.50 5.38 2.18 2.25 0.67 41.52 55 … … 38.69 — 5.38 2.18 2.25 0.67 46.11 65 … … 42.84 — 4.93 1.85 — — 46.56 75, 85, 95 … … 42.87 — 4.92 1.85 — — 46.58