HC Deb 30 November 1978 vol 959 cc298-305W
Mr. Ralph Howell

asked the Secretary of State for Social Services if he will now bring up to date the net weekly spending power figures published in reply to the hon. Member for Norfolk, North (Official Report, 22nd November 1977 and 24th July 1978), showing the relative financial position in and out of work for each family grouping, on the assumption that earnings or previous earnings were £30, £35, £45, £55, £65, £75, £85, £95, and £105 per week, using the new rates of benefits and the new benefit levels due to take effect in November, assuming that the taxpayer is in each case contracted into the new State pension scheme, and including examples for a family with three children as well as for families with each of one, two and four children; and if he will also show in each case the maximum number of weeks for which tax refunds could be payable during sickness or unemployment.

Mr. Orme,

pursuant to his reply [Official Report, 9th November 1978; Vol. 957, c. 334–5], gave the following answer

The information requested is set out in the tables below. 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 reason given in the reply to the hon. Member on 15th October 1976–[Vol. 917, c. 245–50.] The approximate weekly amounted such refunds, where payable, would, however, now be as follows:

to show in each case the maximum number of weeks for which tax refunds could be payable and could only be obtained at disproportionate cost.

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

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 2.76 1.95 2.71 1.01 19.66
35 4.15 2.28 1.86 0.71 21.79
45 7.45 2.93 0.10 25.37
55 10.75 3.58 — 31.32
65 14.05 4.22 — — 37.38
75 17.35 4.87 — — 43.43
85 20.65 5.53 — 49.47
95 23.95 6.18 — 55.52
105 27.25 6.82 — — 61.58
Unemployed (Weeks 3–28)
former earnings U.B. Rent rebate Rate rebate Net weekly spending power
£ £ £ £ £
30 20.22 4.94 1.73 19.64
35 21.54 4.61 1.63 20.53
45 22.87 4.28 1.52 21.42
55 24.19 3.95 1.42 22.31
65 25.51 3.62 1.31 23.19
75 26.83 3.29 1.20 24.07
85 28.15 3.03 1.12 25.05
95 29.47 2.80 1.04 26.06
105 30.79 2.58 0.96 27.08
TABLE 2
MARRIED COUPLE: 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 0.12 1.95 5.30 1.93 25.81
35 1.37 2.28 4.29 1.53 27.82
45 3.96 2.93 2.24 0.84 31.84
55 7.26 3.58 0.54 0.24 35.59
65 10.56 4.22 — — 40.87
75 13.86 4.87 — — 46.92
85 17.16 5.53 — — 52.96
95 20.46 6.18 — — 59.01
105 23.76 6.82 — — 65.07

case of family income supplement (FJS), where entitlement existed while at work, payment continues for the first 6 months of unemployment.

4. There are no tax allowances apart from 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 the assumptions used.

Unemployed (Weeks 3–28)
Former earnings U.B. Rent rebate Rate rebate Net weekly spending power
£ £ £ £ £
30 25.50 5.30 1.95 25.50
35 26.20 5.30 1.95 26.20
345 32.62 4.89 1.72 31.98
55 33.94 4.56 1.61 32.86
65 35.26 4.23 1.51 33.75
75 36.58 3.90 1.40 34.63
85 37.90 3.57 1.29 35.51
95 39.22 3.24 1.19 36.40
105 40.54 2.99 1.10 37.38
TABLE 3
MARRIED COUPLE WITH ONE CHILD AGED 3 RENT £6.00; RATES £2. 25; WORK EXPENSES £2.10; CHILD BENEFIT £3.00
Employed
Normal earnings Tax N.I. F.I.S. Rent rebate Rate rebate Free Welfare milk Net weekly spending power
£ £ £ £ £ £ £ £
30 — 1.95 8.00 4.85 1.75 0.95 36.25
35 0.89 2.28 5.50 4.22 1.55 0.95 36.70
45 3.39 2.93 0.50 3.18 1.20 0.95 37.16
55 6.63 3.58 — 1.56 0.63 — 39.63
65 9.93 4.22 — — — — 43.50
75 13.23 4.87 — — — — 49.55
85 16.53 5.53 — — — — 55.59
95 19.83 6.18 — — — — 61.64
105 23.13 6.82 — — — — 67.70
Unemployed (Weeks 3–28)
Former earnings U.B. F.I.S. Rent rebate Rate rebate Free Welfare milk Net weekly spending power
£ £ £ £ £ £ £
30 27.35 8.00 5.51 1.96 0.95 38.52
35 27.35 5.50 6.00 2.16 0.95 36.71
45 33.69 0.50 5.80 2.05 0.95 37.74
55 36.79 — 5.40 1.93 — 37.87
65 37.11 — 5.07 1.82 — 38.75
75 38.43 — 4.74 1.72 — 39.64
85 39.75 — 4.41 1.61 — 40.52
95 41.07 — 4.08 1.50 — 41.40
105 42.39 — 3.75 1.40 — 42.29
TABLE 4
MARRIED COUPLE WITH TWO CHILDREN AGED 4 AND 6 RENT £6.30; RATES £2.35; WORK EXPENSES £2.10; CHILD BENEFIT £6.00
Employed
Normal earnings Tax N.I. F.I.S. Rent rebate Rent rebate Free school meals Free Welfare milk Net weekly spending power
£ £ £ £ £ £ £ £ £
30 — 1.95 10.00 5.42 1.93 1.25 0.95 42.85
35 0.41 2.28 7.50 4.79 1.73 1.25 0.95 43.78
45 2.91 2.93 2.50 3.62 1.35 1.25 0.95 44.08
55 6.00 3.58 — 2.34 0.90 1.25 — 45.16
65 9.30 4.22 — 0.64 0.30 1.25 — 48.92
75 12.60 4.87 — — — — — 52.78
85 15.90 5.53 — — — — — 58.82
95 19.20 6.18 — — — — — 64.87
105 22.50 6.82 — — — — — 70.93

Unemployed (Weeks 3–28)
Former earnings U.B. F.I.S. Rent rebate Rate rebate Feer school meals Free Welfare milk Net weekly spending power
£ £ £ £ £ £ £ £ £
30 29.20 10.00 5.62 2.00 1.25 0.95 46.37
35 29.20 7.50 6.24 2.20 1.25 0.95 44.69
45 33.69 2.50 6.30 2.24 1.25 0.95 44.28
55 37.64 — 6.01 2.12 1.25 — 44.37
65 38.96 — 5.68 2.02 1.25 — 45.26
75 40.28 — 5.35 1.91 1.25 — 46.14
85 41.60 — 5.02 1.81 1.25 — 47.03
95 42.92 — 4.69 1.70 1.25 — 47.91
105 44.24 — 4.36 1.59 1.25 — 48.79
TABLE 5
MARRIED COUPLE WITH THREE CHILDREN AGED 3, 8 AND 12 RENT £6.30; RATES £2.35; WORK EXPENSES £2.10; CHILD BENEFIT £.00
Employed
Normal earnings Tax N.I. F.I.S. Rent rebate Rate rebate Free school meals Free Welfare milk Net weekly spending power
£ £ £ £ £ £ £ £ £
30 — 1.95 12.00 5.81 2.06 2.50 0.95 49.62
35 — 2.28 9.50 5.18 1.86 2.50 0.95 50.96
45 2.26 2.93 4.50 3.93 1.46 2.50 0.95 51.40
55 5.14 3.58 — 2.95 1.12 2.50 0.95 52.05
65 8.44 4.22 — 1.25 0.52 2.50 — 54.86
75 11.74 4.87 — — — — — 56.64
85 15.04 5.53 — — — — — 62.68
95 18.34 6.18 — — — — — 68.73
105 21.64 6.82 — — — — — 74.79
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 31.05 12.00 5.54 1.97 2.50 0.95 54.36
35 31.05 9.50 6.17 2.17 2.50 0.95 52.69
45 33.69 4.50 6.30 2.35 2.50 0.95 50.64
55 39.49 — 6.30 2.26 2.50 — 50.90
65 40.81 — 6.10 2.15 2.50 — 51.91
75 42.13 — 5.77 2.05 2.50 — 52.80
85 43.45 — 5.44 1.94 2.50 — 53.68
95 44.77 — 5.11 1.84 2.50 — 54.57
105 46.09 — 4.78 1.73 2.50 — 55.45
TABLE 6
MARRIED COUPLE WITH FOUR CHILDREN AGED 3, 8, 11 AND 16 RENT £7.20; RATES £2 .70; WORK EXPENSES £2.10; CHILD BENEFIT £12.00
Employed
Normal earnings Tax N.I. F.I.S. Rent rebate Rate rebate Free school meals Free Welfare milk Net weekly spending power
£ £ £ £ £ £ £ £ £
30 — 1.95 13.50 6.86 2.43 3.75 0.95 55.54
35 — 2.28 11.50 6.11 2.19 3.75 0.95 57.22
45 1.47 2.93 6.50 4.86 1.79 3.75 0.95 58.45
55 4.09 3.58 1.50 3.84 1.45 3.75 0.95 58.82
65 7.39 4.22 — 2.39 0.94 3.75 0.95 61.42
75 10.69 4.87 — 0.69 0.34 3.75 — 64.22
85 13.99 5.53 — — — — — 65.48
95 17.29 6.18 — — — — — 71.53
105 20.59 6.82 — — — — — 77.59

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 32.90 13.50 6.13 2.20 3.75 0.95 61.53
35 32.90 11.50 6.63 2.36 3.75 0.95 60.19
45 33.69 6.50 7.20 2.70 3.75 0.95 56.89
55 41.18 1.50 7.06 2.50 3.75 0.95 59.04
65 42.66 — 7.07 2.50 3.75 0.95 59.03
75 43.98 — 6.74 2.39 3.75 — 58.96
85 45.30 — 6.41 2.29 3.75 — 59.85
95 46.62 — 6.08 2.18 3.75 — 60.73
105 47.94 — 5.75 2.08 3.75 — 61.62
N.I. = National Insurance contribution.
U.B. = Unemployment Benefit.
F.l.S. = Family Income Supplement.