HC Deb 04 April 1979 vol 965 cc910-2W
Mr. Ovenden

asked the Secretary of State for Social Services how the rate of supplementary benefit for a married couple with three children and unrebated rent and rates of £8 and £2 per week, respectively, compares with the net income after tax and national insurance and the addition of child benefit, family income supplement and free school meals, where eligible, of a man in similar family circumstances earning 100 per cent., 75 per cent. and 50 per cent. of average earnings, respectively; and what were the corresponding figures five and 10 years ago.

Mr. Orme

, pursuant to his reply [Official Report, 28 November 1978; Vol. 959, c. 162], gave the following answer:

The table below sets out the desired comparisons on the basis of the assumptions included in the notes.

MARRIED COUPLE WITH THREE CHILDREN AGED 3, 8 AND 12
Date Gross earnings Tax N.I. Family allowance/ child benefit FIS Rent Rent rebate Rates Rate rebate Expenses—travel to work Free school meals Free welfare milk Net weekly spending power Supplementary benefit scale rate
November 1978 Average earnings 83.19 14.43 5.41 9.00 8.00 2.00 2.10 60.25 41.50
75 per cent. 62.39 7.57 4.06 9.00 8.00 2.71 2.00 0.46 2.10 2.50 53.33
50 per cent. 41.60 1.41 2.70 9.00 6.20 8.00 5.38 2.00 1.38 2.10 2.50 0.95 50.80
November 1973 Average earnings 41.15 5.47 2.46 1.90 3.85 0.96 0.65 29.66 19.15
75 per cent. 30.86 2.39 1.91 1.90 3.85 1.80 0.96 0.65 24.80
50 per cent. 20.58 1.41 1.90 2.10 3.85 3.60 0.96 0.65 1.20 0.39 22.90
November 1968 Average earnings 23.25 2.17 1.28 1.90 2.61 0.65 0.40 18.04 12.35
75 per cent. 17.44 0.64 1.23 1.90 2.61 0.65 0.40 13.81
50 per cent. 11.63 0.96 1.90 2.61 0.65 0.40 0.75 9.66

Notes:

1. The gross earnings figures are derived by interpretation 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 and the travel-to-work expenses are shown in the Table. It has also been assumed that:

  1. (i) the couple have no other personal income;
  2. (ii) national insurance contributions (NI) are payable at the non-contracted out rate:
  3. (iii) there are no tax allowances apart from personal tax allowances; and
  4. (iv) means-tested benefits are taken up in full.

3. The rent and rates shown in the table for November 1973 and November 1968 have been calculated from the November 1978 figures specified by my hon. Friend, using a factor of the retail prices index.

4. 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.

5. A family on supplementary benefit would generally get free school meals for all children at school and—from 1971—free welfare milk for all children under school age.

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