HL Deb 16 January 1979 vol 397 cc936-9WA
Lord VAIZEY

asked Her Majesty's Government:

Whether they will list the size of gross income necessary to reach supplementary benefit entitlement, after taking into account child benefit, tax and National Insurance together with an average rent payment for a single person, married couple, married couple with one child, married couple with two children, married couple with three children, married couple with four or more children, and if this data could be presented on the basis of whether families (i) claim; (ii) do not claim any FIS entitlement.

Lord WELLS-PESTELL

I regret that the information is not available in the form requested. However, on the basis of the assumptions included in the notes below, the table shows the minimum level at which total income support from full-time work equals that on supplementary benefit.

MINIMUM LEVEL OF GROSS EARNINGS AT WHICH INCOME FROM FULL-TIME WORK EQUALS TOTAL INCOME SUPPORT ON SUPPLEMENTARY BENEFIT
Family type Gross earnings Tax NI FIS Child benefit Rent Rent rebate Rates Rates rebate Work expenses Free school meals Free welfare milk Total income support
Single person 19.21 0.06 1.25 — — 5.30 5.19 1.95 1.81 2.10 — — 15.55
Married couple 29.25 — 1.90 — — 5.30 5.30 1.95 1.95 2.10 — — 25.25
MC + 1 (aged 3) 19.52 — 1.27 10.50 3.00 6.00 6.00 2.25 2.25 2.10 — 0.95 30.60
MC + 2 (aged 4 and 6) 20.91 — 1.36 11.50 6.00 6.30 6.30 2.35 2.35 2.10 1.25 0.95 37.15
MC + 3 (aged 3, 8 and 12) 23.64 — 1.54 12.50 9.00 6.30 6.30 2.35 2.35 2.10 2.50 0.95 44.95
MC + 4 (aged 3, 8, 11 and 16) 30.35 — 1.97 13.50 12.00 7.20 6.77 2.70 2.40 2.10 3.75 0.95 55.75

NOTES:

1. The levels of rent and rates are based on a survey of local authority properties.

2. The figure for work expenses is based on information about the cost of travelling to work by public transport from the 1975 National Travel Survey, updated by reference to the transport and vehicle component of the RPI.

3. The figures assume full take-up of all entitled benefits.

4. It is assumed that the employee is not contracted out of the new pensions scheme and, therefore, NI contributions are at the 6½ per cent rate.

5. The table takes account of the new prescribed amounts for Family Income Supplement, the new supplementary benefit scale rates, and the increases in child benefit operative from November 1978. The revised housing needs allowances are used for determining rent and rates rebates.

6. The tax allowances are the same as those introduced in the last Budget at April 1978.