HC Deb 07 July 1978 vol 953 cc339-44W
Mr. Ralph Howell

asked the Secretary of State for Social Services if he will update, in line with recent tax and benefit

TABLE 1. SINGLE PERSON: RENT £5.30; RATES £1.95; WORK EXPENSES £2.10
Employed
Normal earnings Tax N.I. Rent rebate Rate rebate Net weekly spending power
£ … … … £ £ £ £ £
30 … … … 2.77 1.64 2.37 0.88 19.49
35 … … … 4.15 1.84 1.52 0.58 21.76
45 … … … 7.45 2.24 — — 25.96
55 … … … 10.75 2.64 — — 32.26
65 … … … 14.05 3.04 — — 38.56
75 … … … 17.35 3.44 — — 44.86
85 … … … 20.65 3.84 — — 51.16
95 … … … 23.95 4.24 — — 57.46
105 … … … 27.25 4.64 — — 63.76

Unemployed (weeks 3–28)
Former earnings U.B. Rent rebate Rate rebate Net weekly spending power
£ … … … … … … … £ £ £ £
30 … … … … … … … 19.17 4.70 1.66 18.28
35 … … … … … … … 20.49 4.37 1.55 19.16
45 … … … … … … … 21.82 4.04 1.44 20.05
55 … … … … … … … 23.14 3.71 1.34 20.94
65 … … … … … … … 24.46 3.38 1.23 21.82
75 … … … … … … … 25.78 3.09 1.14 22.76
85 … … … … … … … 27.10 2.87 1.06 23.78
95 … … … … … … … 28.42 2.64 0.98 24.79
105 … … … … … … … 29.74 2.42 0.90 25.81

Employed
TABLE 2. MARRIED COUPLE: RENT £5.30; RATES £1.9 WORK EXPENSES £2.10
Normal earnings Tax N.I. Rent rebate Rate rebate Net weekly spending power
£ … … … … … £ £ £ £ £
30 … … … … … 0.12 1.64 4.74 1.67 25.30
35 … … … … … 1.37 1.84 3.49 1.27 27.20
45 … … … … … 3.96 2.24 1.69 0.64 31.78
55 … … … … … 7.26 2.64 — — 35.75
65 … … … … … 10.56 3.04 — — 42.05
75 … … … … … 13.86 3.44 — — 48.35
85 … … … … … 17.16 3.84 — — 54.66
95 … … … … … 20.46 4.24 — — 60.95
105 … … … … … 23.76 4.64 — — 67.25

changes, the net weekly spending power figures published in reply to the hon. Member for Norfolk, North—Official Report, 22nd November 1977, column 683–90—showing the relative financial position in and out of work for each family grouping, on the assumptions that the taxpayer is contracted out of the State pension scheme and that earnings or previous earnings were: £25, £35, £45, £55, £65, £75, £85, £95 and £105.

Mr. Orme,

pursuant to his reply [Official Report, 30th June 1978; Vol. 952, c. 698–9], gave the following additional information:

Unemployed (weeks 3–28)
Former earnings U.B. Rent rebate Rate rebate Net weekly spending power
£ … … … … … … … £ £ £ £
30 … … … … … … … 23.80 5.30 1.95 23.80
35 … … … … … … … 26.20 5.30 1.95 26.20
45 … … … … … … … 30.92 4.51 1.60 29.78
55 … … … … … … … 32.24 4.18 1.49 30.66
65 … … … … … … … 33.56 3.85 1.39 31.55
75 … … … … … … … 34.88 3.52 1.28 32.43
85 … … … … … … … 36.20 3.19 1.17 33.31
95 … … … … … … … 37.52 2.96 1.09 34.32
105 … … … … … … … 38.84 2.74 1.01 35.34

TABLE 3. MARRIED COUPLE WITH ONE CHILD AGED 3: RENT £6.00; RATES £2.25; WORK EXPENSFS £2.10; CHILD BENEFIT £2.30
Employed
Normal earnings Tax N.I. F.I.S. Rent rebate Rate rebate Free welfare milk Net weekly spending power
£ … £ £ £ £ £ £ £
30 … — 1.64 6.90 4.39 1.60 0.88 34.08
35 … 0.89 1.84 4.40 3.76 1.40 0.88 34.66
45 … 3.39 2.24 — 2.76 1.05 — 35.13
55 … 6.63 2.64 — 1.06 0.45 — 39.19
65 … 9.93 3.04 — — — — 43.98
75 … 13.23 3.44 — — — — 50.28
85 … 16.53 3.84 — — — — 56.58
95 … 19.83 4.24 — — — — 62.88
105 … 23.13 4.64 — — — — 69.18

Unemployed (weeks 3–28)
Former earnings U.B. F.I.S. Rent rebate Rate rebate Free welfare milk Net weekly spending power
£ … … … £ £ £ £ £ £
30 … … … 26.00 6.90 5.39 1.92 0.88 35.14
35 … … … 26.20 4.40 5.96 2.11 0.88 33.60
45 … … … 33.12 — 5.33 1.90 — 34.40
55 … … … 34.44 — 5.00 1.80 — 35.29
65 … … … 35.76 — 4.67 1.69 — 36.17
75 … … … 37.08 — 4.34 1.59 — 37.06
85 … … … 38.40 — 4.01 1.48 — 37.94
95 … … … 39.72 — 3.68 1.38 — 38.83
105 … … … 41.04 — 3.43 1.29 — 39.81

TABLE 4. MARRIED COUPLE WITH TWO CHILDREN AGED 4 AND 6: RENT. £6.30; RATES £2.35; WORK EXPENSES £2.10; CHILD BENEFIT £4.60.
Employed
Normal earning Tax N.I. F.I.S. Rent rebate Rate rebate Free school meals Free welfare milk Net weekly spending power
£ £ £ £ £ £ £ £
30 — 1.64 8.90 5.02 1.81 1.25 0.88 40.07
35 0.41 1.84 6.40 4.39 1.61 1.25 0.88 41.13
45 2.91 2.24 1.40 3.35 1.26 1.25 0.88 41.84
55 6.00 2.64 — 1.88 0.74 1.25 — 44.08
65 9.30 3.04 — — 0.14 — — 46.65
75 12.60 3.44 — — — — — 52.81
85 15.90 3.84 — — — — — 59.11
95 19.20 4.24 — — — — — 65.41
105 12.50 4.64 — — — — — 71.71

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
£ … … … £ £ £ £ £ £ £
30 … … … 28.20 8.90 5.47 1.95 1.25 0.88 42.60
35 … … … 28.20 6.40 6.09 2.15 1.25 0.88 40.92
45 … … … 33.69 1.40 5.97 2.11 1.25 0.88 41.25
55 … … … 36.64 — 5.58 1.99 1.25 — 41.41
65 … … … 37.96 — 5.25 1.88 1.25 — 42.29
75 … … … 39.28 — 4.92 1.78 1.25 — 43.18
85 … … … 40.60 — 4.59 1.67 1.25 — 44.06
95 … … … 41.92 — 4.26 1.56 1.25 — 44.94
105 … … … 43.24 — 3.93 1.46 1.25 — 45.83

TABLE 5. MARRIED COUPLE WITH FOUR CHILDREN AGED 3, 8, 11 AND 16: RENT £7.20; RATES £2.70; WORK EXPENSES £2.10; CHILD BENEFIT £9.20
Employed
Normal earnings Tax N.I. F.I.S. Rent rebate Rate rebate Free school meals Free welfare milk Net weekly spending power
£ … £ £ £ £ £ £ £ £
30 … — 1.64 12.50 6.56 2.34 3.75 0.88 51.59
35 … — 1.84 10.40 5.83 2.10 3.75 0.88 53.32
45 … 1.47 2.24 5.40 4.58 1.70 3.75 0.88 54.80
55 … 4.09 2.64 0.40 3.65 1.38 3.75 0.88 55.53
65 … 7.39 3.04 — 2.02 0.81 3.75 0.88 59.23
75 … 10.69 3.44 — 0.32 0.21 2.50 — 61.10
85 … 13.99 3.84 — — — — — 64.37
95 … 17.29 4.24 — — — — — 70.67
105 … 20.59 4.64 — — — — — 76.97

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
£ … … … £ £ £ £ £ £ £
30 … … … 32.60 12.50 5.91 2.13 3.75 0.88 57.07
35 … … … 32.60 10.40 6.43 2.30 3.75 0.88 55.66
45 … … … 33.69 5.40 7.20 2.61 3.75 0.88 52.83
55 … … … 41.04 0.40 6.82 2.42 3.75 0.88 54.61
65 … … … 42.36 — 6.59 2.35 3.75 0.88 55.23
75 … … … 43.68 — 6.26 2.24 3.75 — 55.23
85 … … … 45.00 — 5.93 2.14 3.75 — 56.12
95 … … … 46.32 — 5.60 2.03 3.75 — 57.00
105 … … … 47.64 — 5.27 1.92 3.75 — 57.88

N.I.= National insurance contributions.

U.B.= Unemployment benefit.

F.I.S.= Family income supplement.

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. 1. For married couples, the wife has no personal income—apart from child benefit where appropriate—from earnings or social security benefits.
  2. 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. 3. Means-tested benefits are taken up in full by working and unemployed 344 families. In the case of family income supplement, where entitlement existed while at work payment continues for the first six months of unemployment.
  4. 4. There are no tax allowances other than personal allowances.

As requested, the national insurance contributions payable are those for persons contracted out of the State scheme. Such persons would, however, usually be required to make some contribution to their employer's pension scheme.

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 the assumptions used.