HC Deb 03 April 1979 vol 965 cc680-4W
Mr. Newton

asked the Secretary of State for Social Services (1) what was the net spending power expressed in current prices of a family on average national earnings (a) with two children under 11 years of age and (b) with two children under 11 years of age and two children under 16 years of age, in 1969–70, 1973–74 and 1978–79, taking account where appropriate of family allowances and child benefit, family income supplement, rent and rate rebates and allowances;

(2) what was the net spending power, expressed in current prices, of a family on one-half and two-thirds average national earnings (a) with two children under 11 years of age and (b) with two children under 11 years of age and two children under 16 years of age, in 1969–70, 1973–74 and 1978–79, taking account where appropriate of family allowances and child benefit, family income supplement, rent and rate rebates and allowances.

Mr. Orme

The following tables set out the desired information on the basis of the assumptions that are given below.

TABLE (A)-MARRIED COUPLE WITH TWO CHILDREN AGED 4 AND 6
Date Gross earnings Tax NI Family allowance/child benefit FIS Rent Rent rebate Rates Rates rebate Expenses—travel to work Free school meals Free welfare milk Net weekly spending power (NWSP) NWSP at November 1978 prices
November 1969 Average 25.00 3.28 1.55 0.90 2.11 0.70 0.45 17.81 51.81
November 1973 Average 41.15 6.18 2.46 0.90 3.56 1.19 0.65 28.01 58.21
November 1978 Average 83.19 15.29 5.41 6.00 6.30 2.35 2.10 57.74 57.74
November 1969 Two-thirds average 16.67 0.85 1.25 0.90 2.11 0.70 0.45 0.38 12.59 36.62
November 1973 Two-thirds average 27.43 2.07 1.76 0.90 3.56 1.87 1.19 0.65 20.97 43.58
November 1978 Two-thirds average 55.46 6.14 3.61 6.00 6.30 2.26 2.35 0.87 2.10 1.25 45.34 45.34
November 1969 Half-average 12.50 1.06 0.90 2.11 0.70 0.45 0.38 9.46 27.52
November 1973 Half-average 20.58 0.01 1.41 0.90 1.30 3.56 3.13 1.19 0.65 0.60 0.39 20.08 41.73
November 1978 Half-average 41.60 2.06 2.70 6.00 4.20 6.30 3.97 2.35 1.47 2.10 1.25 0.95 43.93 43.93

TABLE (B)—MARRIED COUPLE WITH FOUR CHILDREN AGED 3, 8, 12 AND 15
Date Gross earnings Tax NI Family allowance/child benefit FIS Rent Rent rebate Rates Rates rebate Expenses—travel to work Free school meals Free welfare milk Net weekty spending power (NWSP) NWSP at November 1978 prices
November 1969 Average 25.00 2.37 1.55 2.90 2.50 0.83 0.45 20.20 58.76
November 1973 Average 41.15 4.76 2.46 2.90 4.20 0.60 1.40 0.65 31.18 64.79
November 1978 Average 83.19 13.58 5.41 12.00 7.20 2.70 2.10 64.20 64.20
November 1969 Two-thirds average 16.67 0.19 1.25 2.90 2.50 0.83 0.45 1.14 15.49 45.06
November 1973 Two-thirds average 27.43 0.65 1.76 2.90 4.20 3.13 1.40 0.65 1.80 0.39 26.99 56.09
November 1978 Two-thirds average 55.46 4.42 3.61 12.00 1.30 7.20 3.79 2.70 1.43 2.10 3.75 0.95 58.00 58.00
November 1969 Half average 12.50 1.06 2.90 2.50 0.83 0.45 1.14 11.70 34.04
November 1973 Half-average 20.58 1.41 2.90 2.80 4.20 4.14 1.40 0.65 1.80 0.39 24.95 51.85
November 1978 Half average 41.60 0.76 2.70 12.00 8.20 7.20 5.28 2.70 1.93 2.10 3.75 0.95 58.25 58.25

Notes on the Tables:

1. The gross earnings figures are derived by interpolation between—or extrapolation from—October estimates using the seasonally adjusted monthly index of average earnings—older series—as published by the Department of Employment. The October figures represent the average gross earnings of full-time adult male manual workers in manufacturing industries and some of the principal non-manufacturing industries.

2. The assumptions made about the ages of the children, the housing expenses for these sizes of family and the travel-to-work expenses are shown in the tables. It has also been assumed that:

(i) the couple have no other personal income; (ii) national insurance contributions (NI) 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.

3. Family income supplement (FIS) and free welfare milk were introduced in 1971, the national rent rebate scheme in October 1972 and rate rebates in April 1974.

4. Net weekly spending power is expressed in current prices by using a factor of the retail prices index.