HC Deb 03 April 1978 vol 947 cc36-9W
Mr. Ralph Howell

asked the Secretary of State for Social Services if he will publish a table showing the effect of a 10 per cent. pay increase on the net weekly spending power of families with each of one, two, three and four children, assuming housing costs equal to the average for local authority tenants, and assuming current wages of £25, £35, £45, £55, £65, £75 and £85 a week, respectively.

Mr. Orme,

pursuant to his reply [Official Report, 13th December 1977; Vol. 941, c. 148], gave the following information:

As in earlier replies to similar Questions by the hon. Member, comparisons of net weekly spending power involving yearly wage increases and changes in tax and benefit levels have been made over a past period of a year. Thus, in the tables below the earnings quoted by the hon. Member are assumed to have been received in March 1977 and to have been increased by 10 per cent. by March 1978. Figures relating to earnings with odd amounts of 50p in them are not readily available, and as the hon. Member's Question includes a large number of examples involving such amounts, the 1978 earnings figures have been rounded up to the next pound. Figures for a three-child family could be obtained only at disproportionate cost.

TABLE 1—MARRIED COUPLE WITH ONE CHILD
Assumptions: child aged 3 in 1977; family allowance nil (1977); child benefit £1 (1978); rent £4.51 (1977) £5.30 (1978); rates £1.83 (1977) £2.10 (1978); work expenses £1.75 (1977) £2 (1978).
Earnings £ Tax £ National insurance contributions £ Family income supplement £ Rent rebate £ Rate rebate £ Free school meals £ Free welfare milk £ Net weekly spending power £
MARCH 1977
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
MARCH 1978 Percentage increase over March 1977
28 … — 1.61 7.90 4.54 1.70 — 0.81 32.94 13.7
39 … 2.47 2.24 2.40 3.17 1.26 — 0.81 33.53 16.4
50 … 6.21 2.88 — 1.71 0.74 — — 34.96 13.6
61 … 9.95 3.51 — — 0.08 — — 39.22 15.7
72 … 13.69 4.14 — — — — — 45.77 15.2
83 … 17.43 4.77 — — — — — 52.40 14.7
94 … 21.17 5.41 — — — — — 59.02 14.4
TABLE 2—MARRIED COUPLE WITH TWO CHILDREN
Assumptions: children aged 3 and 5 in 1977; family allowance £1.50 (1977); child benefit £2.50 (1978); rent £4.72 (1977) £5.60 (1978); rates £1.90 (1977) £2.20 (1978); work expenses £1.75 (1977) £2 (1978).
Earnings £ Tax £ National insurance contributions £ Family income supplement £ Rent rebate £ Rate rebate £ Free school meals £ Free welfare milk £ Net weekly spending power £
MARCH 1977
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
MARCH 1978 Percentage increase over March 1977
28 … — 1.61 9.90 5.37 1.96 1.25 0.81 38.38 15.8
39 … 1.35 2.24 4.40 4.00 1.52 1.25 0.81 40.09 16.6
50 … 5.09 2.88 — 2.67 1.08 1.25 0.81 40.54 16.2
61 … 8.83 3.51 — 0.80 0.42 1.25 — 43.83 17.9
72 … 12.57 4.14 — — — — — 47.99 14.0
83 … 16.31 4.77 — — — — — 61.24 13.5
TABLE 3—MARRIED COUPLE WITH FOUR CHILDREN
Assumptions: children aged 3, 8, 11 and 16 in 1977; family allowance £4.50 (1977); child benefit £5.50 (1978); rent £5.38 (1977) £6.30 (1978); rates £2.18 (1977) £2.50 (1978); work expenses £1.75 (1977) £2 (1978).
Earnings £ Tax £ National insurance contributions £ Family income supplement £ Rent rebate £ Rate rebate £ Free school meals £ Free welfare milk £ Net weekly spending power £
MARCH 1977
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
MARCH 1978 Percentage increase over March 1977
28 … — 1.61 12.50 6.30 2.50 3.75 0.81 46.95 19.7
39 … — 2.24 8.40 5.72 2.12 3.75 0.81 52.26 16.6
50 … 2.22 2.88 2.90 4.34 1.68 3.75 0.81 53.08 17.2
61 … 5.96 3.51 — 2.79 1.15 3.75 0.81 54.73 17.2
72 … 9.70 4.14 — 0.92 0.49 3.75 0.81 58.83 20.5
83 … 13.44 4.77 — — — — — 60.74 14.5
94 … 17.18 5.41 — — — — — 66.11 12.1