Personal Incomes (Hansard, 23 June 1977)

§ Mr. Ralph Howell
asked the Secretary of State for Social Services what is the net weekly spending power per head from unemployment benefit including earnings-related supplement during the first six months of unemployment for: (a) a single person, (b) a married couple, (c) a married couple with two children, and (d) a married couple with four children, assuming previous earnings of £40 and £50 per week, discounting any continuing eligibility to family income supplement 482W and using the same estimates for rent and rates as those given in previous replies to the hon. Member for North Norfolk.

§ Mr. Orme
Previous tables published in replies to the hon. Member have contained many assumptions and I have indicated my doubts about the general validity of the figures given. The information now requested would involve further assumptions about non-eligibility for family income supplement, and, since the resulting figures would be of even more doubtful validity, I do not consider that the staff time required to make the calculations would be justified.

§ Mr. Ralph Howell
asked the Secretary of State for Social Services further to his reply to the hon. Member for North Norfolk, Official Report, 11th May 1977, c. 546–8, if he will publish figures showing the net weekly spending power of a single mother with two chidren not over 11 years of age in April 1976 and April 1977, assuming in each case earnings of £45, £50, £55, £60, £65 and £70.

§ Mr. Orme
The net weekly spending power of a single mother with two children now aged 4 and 6, on the basis of the assumptions described in the notes, is as shown opposite:
483W

Earnings Tax National Insurance Contributions Family Income Supplement Rent Rebate Rates Rebate Free Welfare Milk Free School Meals Net Weekly spending Power

April 1976—

£45 … … 6.16 2.59 — 1.24 0.58 — 0.75 33.45

£50 … … 7.91 2.88 — 0.39 0.28 — — 34.51

£55 … … 9.66 3.16 — — — — — 36.81

£60 … … 11.41 3.45 — — — — — 39.77

£65 … … 13.16 3.74 — — — — — 42.73

£70 … … 14.91 4.02 — — — — — 45.70

April 1977(a)—

£45 … … 5.04 2.59 — 2.59 1.05 — 0.75 34.96

£50 … … 6.79 2.88 — 1.74 0.75 — 0.75 36.77

£55 … … 8.54 3.16 — 0.89 0.45 — 0.75 38.59

£60 … … 10.29 3.45 — — 0.15 — 0.75 40.36

£65 … … 12.04 3.74 — — — — — 42.42

£70 … … 13.79 4.02 — — — — — 45.39

April 1977(b)—

£45 … … 4.75 2.59 — 2.59 1.05 — 0.75 35.25

£50 … … 6.40 2.88 — 1.74 0.75 — 0.75 37.16

£55 … … 8.05 3.16 — 0.89 0.45 — 0.75 39.08

£60 … … 9.70 3.45 — — 0.15 — — 40.20

£65 … … 11.35 3.74 — — — — — 43.11

£70 … … 13.00 4.02 — — — — — 46.18

Notes:

(i) The figures for April 1977 reflect the proposed tax changes announced in the Budget, (a) based on a tax rate of 35 per cent., and (b) a tax rate of 33 per cent.

(ii) The following assumptions have been made:

April 1976: family allowances and child interim benefit totalling £3 in payment; rent £4.72; rates £1.90; work expenses £1.75.

April 1977: child benefit plus child benefit increase totalling £3 in payment; rent £5.60; rates £2.20; work expenses £2.

(iii) For family income supplement purposes—family allowances were taken into account throughout but child interim benefit was not taken into account until July 1976; child benefit and child benefit increase, which replaced family allowances and child interim benefit in April 1977, are not taken into account.

484W

Earnings	Tax	National Insurance Contributions	Family Income Supplement	Rent Rebate	Rates Rebate	Free Welfare Milk	Free School Meals	Net Weekly spending Power
April 1976—
£45	…	…	6.16	2.59	—	1.24	0.58	—	0.75	33.45
£50	…	…	7.91	2.88	—	0.39	0.28	—	—	34.51
£55	…	…	9.66	3.16	—	—	—	—	—	36.81
£60	…	…	11.41	3.45	—	—	—	—	—	39.77
£65	…	…	13.16	3.74	—	—	—	—	—	42.73
£70	…	…	14.91	4.02	—	—	—	—	—	45.70
April 1977(a)—
£45	…	…	5.04	2.59	—	2.59	1.05	—	0.75	34.96
£50	…	…	6.79	2.88	—	1.74	0.75	—	0.75	36.77
£55	…	…	8.54	3.16	—	0.89	0.45	—	0.75	38.59
£60	…	…	10.29	3.45	—	—	0.15	—	0.75	40.36
£65	…	…	12.04	3.74	—	—	—	—	—	42.42
£70	…	…	13.79	4.02	—	—	—	—	—	45.39
April 1977(b)—
£45	…	…	4.75	2.59	—	2.59	1.05	—	0.75	35.25
£50	…	…	6.40	2.88	—	1.74	0.75	—	0.75	37.16
£55	…	…	8.05	3.16	—	0.89	0.45	—	0.75	39.08
£60	…	…	9.70	3.45	—	—	0.15	—	—	40.20
£65	…	…	11.35	3.74	—	—	—	—	—	43.11
£70	…	…	13.00	4.02	—	—	—	—	—	46.18
Notes:
(i) The figures for April 1977 reflect the proposed tax changes announced in the Budget, (a) based on a tax rate of 35 per cent., and (b) a tax rate of 33 per cent.
(ii) The following assumptions have been made:
April 1976: family allowances and child interim benefit totalling £3 in payment; rent £4.72; rates £1.90; work expenses £1.75.
April 1977: child benefit plus child benefit increase totalling £3 in payment; rent £5.60; rates £2.20; work expenses £2.
(iii) For family income supplement purposes—family allowances were taken into account throughout but child interim benefit was not taken into account until July 1976; child benefit and child benefit increase, which replaced family allowances and child interim benefit in April 1977, are not taken into account.