HC Deb 22 November 1977 vol 939 cc683-9W
Mr. Ron Thomas

asked the Secretary of State for Social Services how many children, and of what ages, have been taken into care since 1974 because their mothers have been committed to one of Her Majesty's prisons in the United Kingdom.

Mr. Moyle

I regret that information is not available in the form requested. Children received into care in England and Wales under Section 1 of the Children Act 1948 primarily because a parent or guardian, male or female, was in prison or remanded in custody were as follows:

effects of the changes to tax allowances announced by my right hon. Friend the Chancellor of the Exchequer on 26th October. The assumptions made about the ages of the children and housing and work expenses are shown at the head of each table. Income tax refunds have not been included as part of net weekly spending power of the unemployed man, for the reasons given in the reply to the hon. Member on 15th October 1976. The approximate weekly amounts of such refunds, where payable, would now be as follows:

Family type Approximate weekly amount of tax refund (1977–78) levels
£
Single person 6.20
Married couple 9.55
Married couple + 1 child aged 3 10.80
Married couple + 2 children aged 4 and 6 11.95
Married couple + 4 children aged 3, 8, 11 and 16 14.80

Receipt of tax refunds may affect entitlement to free school meals but is unlikely to affect any other means-tested benefit.

Other assumptions made to compile the tables are as follows:

1. For married couples, the wife has no personal income, apart from child benefit where appropriate, from earnings or social security benefits.

2. There have been no previous spells of unemployment or sickness which would affect the amount of unemployment benefit and earnings-related supplement payable.

3. Means-tested benefits are taken up in full by working and unemployed families. In the case of family income supplement (FIS), where entitlement existed while at work, payment continues for the first six months of unemployment.

4 There are no tax allowances other than personal allowances.

The tables relate only to the particular illustrative situations quoted, and have no general application and no validity if quoted out of context without stating

TABLE 1
SINGLE PERSON: RENT £4.70, RATES £1 .85, WORK EXPENSES £2.00
Employed
Normal earnings Tax N.I. Rent rebate Rate rebate Net weekly spending power
£ £ £ £ £ £
25 2.32 1.44 2.88 1.13 16.70
35 5.72 2.01 1.16 0.52 20.40
45 9.12 2.59 — — 24.74
55 12.52 3.16 — — 30.77
65 15.92 3.74 — — 36.79
75 19.32 4.31 — — 42.82
85 22.72 4.89 — — 48.84
95 26.12 5.46 — — 54.87
105 29.52 6.04 — — 60.89

Unemployed (weeks 3–28)
Former earnings U.B. Rent rebate Rate rebate Net weekly spending power
£ £ £ £ £
25 18.12 4.60 1.68 17.85
35 20.98 3.89 1.45 19.77
45 22.29 3.56 1.35 20.65
55 23.57 3.24 1.24 21.50
65 24.85 2.92 1.14 22.36
75 26.13 2.67 1.06 23.31
85, 95, 105 26.88 2.54 1.01 23.88

TABLE 2
MARRIED COUPLE: RENT £4.70, RATES £1 .85, WORK EXPENSES £2.00
Employed
Normal earnings Tax N.I. Rent rebate Rate rebate Net weekly spending power
£ £ £ £ £ £
25 — 1.44 4.70 1.85 21.56
35 2.39 2.01 3.13 1.21 26.39
45 5.79 2.59 1.33 0.58 29.98
55 9.19 3.16 — — 34.10
65 12.59 3.74 — — 40.12
75 15.99 4.31 — — 46.15
85 19.39 4.89 — — 52.17
95 22.79 5.46 — — 58.20
105 26.19 6.04 — — 64.22

Unemployed (weeks 3–28)
Former earnings U.B. Rent rebate Rate rebate Net weekly spending power
£ £ £ £ £
25 23.80 4.70 1.85 23.80
35 25.37 4.70 1.85 25.37
45 31.39 4.04 1.50 30.38
55 32.67 3.72 1.40 31.24
65 33.95 3.40 1.29 32.09
75 35.23 3.08 1.19 32.95
85, 95, 105 35.98 2.89 1.13 33.45

the assumptions used. Further, it must be remembered that the rates of child benefit and national insurance entitlement in Tables 3 and 4 are those which will operate only between November 1977 and April 1978. From April child benefit will rise by £1.30 a week for the first child in a family and by 80p for each subsequent child, and there will be corresponding reductions in national insurance dependency increases and related adjustments in child tax allowances.

TABLE 3
MARRIED COUPLE WITH ONE CHILD AGED 3: RENT £5.30, RATES £2.10, WORK EXPENSES £2. CHILD BENEFIT£
Employed
Normal earnings Tax N.I. FIS Rent rebate Rate rebate Free welfare milk Net weekly spending power
£ £ £ £ £ £ £ £
25 — 1.44 9.40 4.92 1.82 0.81 32.11
35 1.11 2.01 4.40 3.67 1.42 0.81 33.78
45 4.51 2.59 — 2.56 1.04 0.81 33.91
55 7.91 3.16 — 0.86 0.44 — 36.83
65 11 .31 3.74 — — — — 41.55
75 14.71 4.31 — — — — 47.58
85 18.11 4.89 — — — — 53.60
95 21.51 5.46 — — — — 59.63
105 24.91 6.04 — — — — 65.65

Unemployed (weeks 3–28)
Normal earnings U.B. FIS Rent rebate Rate rebate Free welfare milk Net weekly spending power
£ £ £ £ £ £ £
25 27.30 9.40 4.34 1.63 0.81 37.08
35 27.30 4.40 5.30 2.03 0.81 33.44
45 32.62 — 5.30 1.96 — 33.48
55 36.17 — 4.48 1.67 — 35.92
65 37.45 — 4.16 1.57 — 36.78
75 38.73 — 3.84 1.47 — 36.64
85, 95, 105 39.48 — 3.65 1.41 — 38.14

TABLE 4
MARRIED COUPLE WITH TWO CHILDREN AGED 4 AND 6:
RENT £5.60, RATES £2.20, WORK EXPENSES £2.00, CHILD BENEFIT £2.50
Employed
Normal earnings Tax N.I. FIS Rent rebate Rate rebate Free school meals Free welfare milk Net weekly spending power
£ £ £ £ £ £ £ £ £
25 — 1.44 10.50 5.60 2.16 1.25 0.81 36.58
35 — 2.01 6.40 4.50 1.68 1.25 0.81 40.33
45 3.39 2.59 1.40 3.28 1.29 1.25 0.81 39.75
55 6.79 3.16 — 1.82 0.78 1.25 — 41.60
65 10.19 3.74 — — 0.18 1.25 — 45.20
75 13.59 4.31 — — — — — 49.80
85 16.99 4.89 — — — — — 55.82
95 20.39 5.46 — — — — — 61.85
105 23.79 6.04 — — — — — 67.87

Unemployed (weeks 3–28)
Normal earnings U.B. FIS Rent rebate Rate rebate Free school meals Free welfare milk Net weekly spending power
£ £ £ £ £ £ £ £
25 30.30 10.50 4.65 1.73 1.25 0.81 43.94
35 30.30 6.40 5.60 2.06 1.25 0.81 41.12
45 32.62 1.40 5.60 2.20 1.25 0.81 38.58
55 39.17 — 5.06 1.86 1.25 — 42.04
65 40.45 — 4.74 1.76 1.25 — 42.90
75 41.73 — 4.42 1.66 1.25 — 43.76
85, 95, 105 42.48 — 4.23 1.60 1.25 — 44.26

TABLE 5
MARRIED COUPLE WITH FOUR CHILDREN AGED 3, 8, 11 AND 16:
RENT £6.30, RATES £2.50, WORK EXPENSES £2, CHILD BENEFIT £5.50
Employed
Normal earnings Tax N.I. FIS Rent rebate Rate rebate Free school meals Free welfare milk Net weekly spending power
£ £ £ £ £ £ £ £ £
25 — 1.44 12.50 6.30 2.50 3.75 0.81 44.12
35 — 2.01 10.40 6.22 2.28 3.75 0.81 51.15
45 0.52 2.59 5.40 4.97 1.88 3.75 0.81 53.40
55 3.92 3.16 0.40 3.74 1.48 3.75 0.81 52.80
65 7.32 3.74 — 2.11 0.91 3.75 0.81 56.22
75 10.72 4.31 — 0.41 0.31 3.75 — 59.14
85 14.12 4.89 — — — — — 60.69
95 17.52 5.46 — — — — — 66.72
105 20.92 6.04 — — — — — 72.74

Unemployed (weeks 3–28)
Former earnings U.B. FIS Rent rebate Rate rebate Free school meals Free welfare milk Net weekly spending power
£ £ £ £ £ £ £ £
25 36.30 12.50 5.37 2.01 3.75 0.81 57.44
35 36.30 10.40 5.89 2.18 3.75 0.81 56.03
45 36.30 5.40 6.30 2.50 3.75 0.81 51.76*
55 39.87 0.40 6.30 2.50 3.75 0.81 50.33*
65 46.45 — 5.96 2.20 3.75 — 55.06
75 47.73 — 5.64 2.09 3.75 — 55.91
85, 95, 105 48.48 — 5.45 2.03 3.75 — 56.41
* The family would also be entitled to Supplementary Benefit, raising their net weekly spending power to £52.16 altogether.
N.I.—National insurance contribution
U.B.—Unemployment benefit
FIS—Family income supplement

Mr. Ralph Howell

asked the Secretary of State for Social Services what would be the total gross cost and the total net extra cost, after taking into account expenditure on family income support detailed in his reply to the hon. Member for Norfolk, North,Official Report, 7th July 1977, columns 599–600, of withdrawing residual child tax allowances, and of paying child benefit to all children at the appropriate age-related supplementary benefit rates for children.

Mr. Orme,

pursuant to his reply, [Official Report, 26th October 1977; vol. 936, c.747],gave the following information:

It is estimated that the total gross cost in 1977–78 of paying child benefit to all children at the appropriate age-related supplementary benefit rates for children would be about £3,750 million. The net extra cost after allowing estimated saving of £210 million on national insurance child dependency additions, £270 million on supplementary benefits, £880 million from the withdrawal of residual child tax allowances and £890 million current cost of child benefit would be £1,500 million.