HC Deb 08 May 1978 vol 949 cc362-3W
Mr. Ralph Howell

asked the Secretary of State for Social Services (1) if he will publish figures tabulating the total gross cost to the employer, including employer's national insurance contribution with 2 per cent. surcharge, and any other statutory payments, as well as wages, of providing a wage which will leave a married man with four children aged 16, 14, 12 and 9 years with a net weekly income, net of housing costs and after allowing £3 a week for work expenses, equivalent to (a) 100 per cent., (b) 120 per cent. and (c) 140 per cent. of his supplementary benefit entitlement plus addition for free school meals;

(2) if he will publish figures tabulating the total gross cost to the employer, including employer's national insurance contributions with 2 per cent. surcharge, and any other statutory payments, as well as wages, of providing a wage which will leave a married man with two children aged 15 and 13 years with a net weekly income, net of housing costs and after

£p
Gross wage Employer's national insurance contribution Cost to employer
1 2 3 4
(a) 34.69 20.96 2.52 23.48
(b) 41.21 46.06 5.53 51.59
(c) 47.73 69.32 8.32 77.64
NOTES
COLUMN 1.The figures have been arrived at by taking (a) the supplementary benefit scale rates (b) 120 per cent. of the scale rates and (c) 140 per cent. of the scale rates, and adding in each case the value of free school meals and free welfare milk.
COLUMN 2. Shows the gross wages needed to produce net disposable incomes equal to the amounts in column 1. Net disposable income is defined as gross earnings plus child benefit, family income supplement, rent and rate rebates and the value of free school meals and free welfare milk; less tax, employee's national insurance contribution for an employee who is not contracted out, gross rent and rates, and work expenses. Gross rent and rates are assumed to be £6.30 and £2.35 respectively Work expenses are assumed to be £2.10.
COLUMN 3. The figures comprise the national insurance contributions for employers who are not contracted out and the 2 per cent surcharge. I understand that there are no other similar statutory payments which apply to all employments.
COLUMN 4. Shows the totals of the figures in columns 2 and 3.