Family Incomes (Hansard, 15 December 1978)

§ Mr. Ralph Howell
asked the Secretary of State for Social Services if he will publish figures similar to those given in

TABLE 1

SINGLE PERSON:

RENT £5.30; RATES £1.95

Former earnings UB£ Rent rebate£ Rate rebate£ Net weekly spending power£

All levels 15.75 5.30 1.95 15.75

TABLE 2

MARRIED COUPLE:

RENT £5.30; RATE; £1.95

Former earnings UB£ Rent rebate£ Rate rebate£ Net weekly spending power£

All levels 25.50 5.30 1.95 25.50

TABLE 3

MARRIED COUPLE WITH ONE CHILD AGED 3:

RENT £6.00; RATES £2.35; CHILD BENEFIT £3.00

Former earnings UB£ FIS£ Rent rebate£ Rate rebate£ Free welfare milk£ Net weekly spending power£

£30.00 27.35 8.00 5.51 1.96 0.95 38.52

£35.00 27.35 5.50 6.00 2.16 0.95 36.71

£45.00 27.35 0.50 6.00 2.25 0.95 31.80

Above £45.00 27.35 — 6.00 2.25 0.95 31.30

TABLE 4

MARRIED COUPLE WITH TWO CHILDREN AGED 4 AND 6:

RENT £6.30; RATES £2.35; CHILD BENEFIT £6.00

Former earnings UB£ FIS£ Rent rebate£ Rate rebate£ Free school milk£ Free welfare milk£ Net weekly spending power£

£30.00 29.20 10.00 5.62 2.00 1.25 0.95 46.37

£35.00 29.20 7.50 6.24 2.20 1.25 0.95 44.69

£45.00 29.20 2.50 6.30 2.35 1.25 0.95 39.90

£50.00 and above 29.20 — 6.30 2.35 1.25 0.95 37.40

606W
reply to the hon. Member for Norfolk, North—[Official Report, 30th November, c. 298–306.]—showing the net weekly spending power of each family group during the first six months of unemployment, but assuming that there is no entitlement to earnings related supplement.

§ Mr. Orme:
The information requested is set out in the tables below. The assumptions made about the ages of the children and housing expenses are shown at the head of each table. Other assumptions are as in my reply to the hon. Member of 30th November 1978.
A further assumption is that, for unemployment benefit purposes, class 1 contributions in the relevant tax year have been paid on earnings, or credited, sufficient to give entitlement to flat-rate benefit only but that, for the purpose of calculating entitlement to family income supplement, earnings immediately prior to unemployment have been in the range of £30 to £105. The tables therefore relate only to the particular illustrative situa
607W

TABLE 5

MARRIED COUPLE WITH THREE CHILDREN AGED 3,8 AND 12:

RENT £6.30: RATES £2.35; CHILD BENEFIT £9.00

Former earnings£ UB SB FIS Rent rebate Rate rebate Free school meals Free welfare foods Net weekly spending power

£ £ £ £ £ £ £ £

£30.00 31.05 — 12.00 5.54 1.97 2.50 0.95 54.36

£35.00 31.05 — 9.50 6.17 2.17 2.50 0.95 52.69

£45.00 31.05 — 4.50 6.30 2.35 2.50 0.95 48.00

£55.00 and above 31.05 10.10 — — — 2.50 0.95 44.95

12.00 5.54 1.97 2.50 0.95 54.36

£35.00 31.05 — 19.50 6.17 2.17 2.50 0.95 52.69

£45.00 31.05 — 4.50 6.30 2.35 2.50 0.95 48.00

£55.00 and above 31.05 10.10 — — — 2.50 0.95 44.95

TABLE 6

MARRIED COUPLE WITH FOUR CHILDREN AGED 3,8,11 AND 16:

RENT £7.20; RATES £2.70; CHILD BENEFIT £12.00

Former earnings UB£ SB£ FIS£ Rent rebate£ Rate rebate£ Free school meals£ Free welfare foods£ Net weekly spending power£

£30.00 32.90 — 13.50 6.13 2.20 3.75 0.95 61.53

£35.00 32.90 — 11.50 6.63 2.36 3.75 0.95 60.19

£45.00 32.90 — 6.50 7.20 2.70 3.75 0.95 56.10

£55.00 32.90 14.55 1.50 — — 3.75 0.95 55.75

£57.00 and above 32.90 16.05 — — — 3.75 0.95 55.75

UB=Unemployment Benefit.

SB=Supplementary Benefit.

F1S=Family Income Supplement.

tions quoted, and have no general application and no validity if quoted out of context without stating the assumptions used.

§ Mr. Ralph Howell
asked the Secretary of State for Social Services if he will publish figures showing the net weekly spending power for families with each of two children aged 16 and 14 years, three children aged 16, 14 and 12 years, and four children aged 16, 14, 12 and 10 years, assuming that the parents are dependent on supplementary benefits plus disregards bringing their total income up to 120 per cent. of their supplementary benefit entitlement levels, and also taking into account the value of free school meals.

§ Mr. Orme:
120 per cent. of supplementary benefit entitlement, apart from rent, plus the value of free school meals for the families specified is £53.80, £62.91 and £70.52.

§ Mr. Ralph Howell
asked the Secretary of State for Social Services what increase 608W in net weekly spending power a man with a wife and two children would receive if his gross wage was increased by 5 per cent. if his previous earnings were £50, £60, £70, £80, £90 or £100 per week, making the same assumptions as in the Answer to the Question of the hon. Member for North Norfolk,Official Report,30th November, c. 298; and if also he will state the percentage increase in each case.

§ Mr. Orme:
As in earlier replies to similar Questions by the hon. Member, the comparisons of net weekly spending power which involve yearly wage increases and changes in tax and benefit levels have been made over a past period of a year. The figures given in the table below therefore compare the net weekly spending power of a man with earnings in November 1977 of the various amounts requested with his position a year later when his earnings had been increased by 5 per cent. The table is based on standard assumptions, for example as to housing and work expenses, and has no general validity.
609W

MARRIED COUPLE WITH TWO CHILDREN AGED 4 AND 6

Earnings Tax National insurance contribution Child benefit Rent Rent rebate Rates Rate rebate Work expenses Free school meals Free welfare milk Net weekly spending power Percentage increase in net weekly spending power

November—

1977 50.00 5.09 2.88 2.50 5.60 2.67 2.20 1.08 2.00 1.25 0.81 40.54 12

1978 52.50 5.16 3.41 6.00 6.30 2.77 2.35 1.37 2.10 1.25 0.95 45.52

1977 60.00 8.49 3.45 2.50 5.60 0.97 2.20 0.48 2.00 1.25 — 43.46 11

1978 63.00 8.64 4.09 6.00 6.30 0.98 2.35 0.45 2.10 1.25 — 48.17

1977 70.00 11.89 4.02 2.50 5.60 — 2.20 — — 46.79 11

1978 73.50 12.09 4.78 6.00 6.30 — 2.35 2.10 — — 51.88

1977 80.00 15.29 4.60 2.50 5.60 — 2.20 — 2.00 — — 52.81 10

1978 84.00 15.57 5.46 6.00 6.30 — 2.35 — 2.10 — — 58.22

1977 90.00 18.69 5.18 2.50 5.60 — 2.20 — 2.00 — — 58.83 10

1978 94.50 19.02 6.14 6.00 6.30 — 2.35 — 2.10 — — 64.59

1977 100.00 22.09 5.75 2.50 5.60 — 2.20 — 2.00 — — 64.86 9

1978 105.00 22.50 6.82 6.00 6.30 — 2.35 — 2.10 — — 70.93

NOTES

The assumptions made about the ages of the children, the housing expenses for this size of family and the work expenses are shown in the table. It has also been assumed that:—

(i) the couple have no other personal income;

(ii) national insurance contributions are payable at the non-contracted out rate;

(iii) there are no tax allowances apart from personal tax allowances; and

(iv) means-tested benefits are taken up in full.
610W 611W

TABLE 1
SINGLE PERSON:
RENT £5.30; RATES £1.95
Former earnings	UB£	Rent rebate£	Rate rebate£	Net weekly spending power£
All levels	15.75	5.30	1.95	15.75

TABLE 2
MARRIED COUPLE:
RENT £5.30; RATE; £1.95
Former earnings	UB£	Rent rebate£	Rate rebate£	Net weekly spending power£
All levels	25.50	5.30	1.95	25.50

TABLE 3
MARRIED COUPLE WITH ONE CHILD AGED 3:
RENT £6.00; RATES £2.35; CHILD BENEFIT £3.00
Former earnings	UB£	FIS£	Rent rebate£	Rate rebate£	Free welfare milk£	Net weekly spending power£
£30.00	27.35	8.00	5.51	1.96	0.95	38.52
£35.00	27.35	5.50	6.00	2.16	0.95	36.71
£45.00	27.35	0.50	6.00	2.25	0.95	31.80
Above £45.00	27.35	—	6.00	2.25	0.95	31.30

TABLE 4
MARRIED COUPLE WITH TWO CHILDREN AGED 4 AND 6:
RENT £6.30; RATES £2.35; CHILD BENEFIT £6.00
Former earnings	UB£	FIS£	Rent rebate£	Rate rebate£	Free school milk£	Free welfare milk£	Net weekly spending power£
£30.00	29.20	10.00	5.62	2.00	1.25	0.95	46.37
£35.00	29.20	7.50	6.24	2.20	1.25	0.95	44.69
£45.00	29.20	2.50	6.30	2.35	1.25	0.95	39.90
£50.00 and above	29.20	—	6.30	2.35	1.25	0.95	37.40

TABLE 5
MARRIED COUPLE WITH THREE CHILDREN AGED 3,8 AND 12:
RENT £6.30: RATES £2.35; CHILD BENEFIT £9.00
Former earnings£	UB	SB	FIS	Rent rebate	Rate rebate	Free school meals	Free welfare foods	Net weekly spending power
	£	£	£	£	£	£	£	£
£30.00	31.05	—	12.00	5.54	1.97	2.50	0.95	54.36
£35.00	31.05	—	9.50	6.17	2.17	2.50	0.95	52.69
£45.00	31.05	—	4.50	6.30	2.35	2.50	0.95	48.00
£55.00 and above	31.05	10.10	—	—	—	2.50	0.95	44.95
12.00	5.54	1.97	2.50	0.95	54.36
£35.00	31.05	—	19.50	6.17	2.17	2.50	0.95	52.69
£45.00	31.05	—	4.50	6.30	2.35	2.50	0.95	48.00
£55.00 and above	31.05	10.10	—	—	—	2.50	0.95	44.95

TABLE 6
MARRIED COUPLE WITH FOUR CHILDREN AGED 3,8,11 AND 16:
RENT £7.20; RATES £2.70; CHILD BENEFIT £12.00
Former earnings	UB£	SB£	FIS£	Rent rebate£	Rate rebate£	Free school meals£	Free welfare foods£	Net weekly spending power£
£30.00	32.90	—	13.50	6.13	2.20	3.75	0.95	61.53
£35.00	32.90	—	11.50	6.63	2.36	3.75	0.95	60.19
£45.00	32.90	—	6.50	7.20	2.70	3.75	0.95	56.10
£55.00	32.90	14.55	1.50	—	—	3.75	0.95	55.75
£57.00 and above	32.90	16.05	—	—	—	3.75	0.95	55.75
UB=Unemployment Benefit.
SB=Supplementary Benefit.
F1S=Family Income Supplement.

MARRIED COUPLE WITH TWO CHILDREN AGED 4 AND 6
Earnings	Tax	National insurance contribution	Child benefit	Rent	Rent rebate	Rates	Rate rebate	Work expenses	Free school meals	Free welfare milk	Net weekly spending power	Percentage increase in net weekly spending power
November—
1977	50.00	5.09	2.88	2.50	5.60	2.67	2.20	1.08	2.00	1.25	0.81	40.54	12
1978	52.50	5.16	3.41	6.00	6.30	2.77	2.35	1.37	2.10	1.25	0.95	45.52
1977	60.00	8.49	3.45	2.50	5.60	0.97	2.20	0.48	2.00	1.25	—	43.46	11
1978	63.00	8.64	4.09	6.00	6.30	0.98	2.35	0.45	2.10	1.25	—	48.17
1977	70.00	11.89	4.02	2.50	5.60	—	2.20	—	—	46.79	11
1978	73.50	12.09	4.78	6.00	6.30	—	2.35	2.10	—	—	51.88
1977	80.00	15.29	4.60	2.50	5.60	—	2.20	—	2.00	—	—	52.81	10
1978	84.00	15.57	5.46	6.00	6.30	—	2.35	—	2.10	—	—	58.22
1977	90.00	18.69	5.18	2.50	5.60	—	2.20	—	2.00	—	—	58.83	10
1978	94.50	19.02	6.14	6.00	6.30	—	2.35	—	2.10	—	—	64.59
1977	100.00	22.09	5.75	2.50	5.60	—	2.20	—	2.00	—	—	64.86	9
1978	105.00	22.50	6.82	6.00	6.30	—	2.35	—	2.10	—	—	70.93
NOTES
The assumptions made about the ages of the children, the housing expenses for this size of family and the work expenses are shown in the table. It has also been assumed that:—
(i) the couple have no other personal income;
(ii) national insurance contributions are payable at the non-contracted out rate;
(iii) there are no tax allowances apart from personal tax allowances; and
(iv) means-tested benefits are taken up in full.