HC Deb 25 July 1979 vol 971 cc312-9W
Mr. Ralph Howell

asked the Secretary of State for Social Services if he will up date the reply given to the hon. Member for Norfolk, North—30 November 1978, c. 298—taking into account increases in rent, rates and work expenses, as well as changes in child benefit and child tax allowances and the Budget proposals, and including rates paid for water and sewerage.

Mrs. Chalker,

pursuant to her reply [Official Report, 20 June 1979; Vol. 968, c. 596], gave the following answer:

The information requested is set out in the attached tables which give illustrative details as at April 1979 of the net weekly spending power for the family types specified both where the head of the family is employed and during weeks 3–28 of unemployment. It is not possible

Weekly tax refund
Family type Tax paid at 25 per cent. only Tax paid at 25 per cent. plus 30 per cent.
£ £
Single person 5.60 7.45
Married couple 8.75 11.20
Married couple plus one child aged 3 8.75 11.20
Married couple plus two children aged 4 and 6 8.75 11.20
Married couple plus three children aged 3,8 and 12 8.75 11.20
Married couple plus four children aged 3, 8, 11 and 16 8.75 11.20

Receipt of tax refunds may affect entitlement to free school meals but is unlikely to affect any other means-tested benefit. Figures are not readily available to show in each case the maximum number of weeks for which tax refunds could he 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

TABLE 1
SINGLE PERSON: RENT £5.40; RATES £2.30; WORK EXPENSES £2.45 EMPLOYED
Normal earnings Tax NI Rent rebate Rate rebate Net weekly spending power
£ £ £ £ £
£30 … 1.90 1.95 2.77 1.21 19.98
£35 … 3.15 2.28 1.92 0.91 22.25
£45 … 6.06 2.93 0.22 0.31 26.39
£55 … 9.06 3.58 — — 32.21
£65 … 12.06 4.22 — — 38.57
£75 … 15.06 4.87 — — 44.92
£85 … 18.06 5.53 — — 51.26
£95 … 21.06 6.18 — — 57.61
£105 … 24.06 6.82 — — 63.97
UNEMPLOYED (weeks 3–28)
Former earnings UB Rent rebate Rate rebate Net weekly spending power
£ £ £ £
£30 … … … … 19.16 5.26 2.03 18.75
£35 … … … … 20.56 4.91 1.92 19.69
£45 … … … … 21.93 4.57 1.81 20.61
£55 … … … … 23.19 4.26 1.71 21.46
£65 … … … … 24.45 3.94 1.60 22.29
£75 … … … … 25.71 3.63 1.50 23.14
£85 … … … … 26.97 3.31 1.40 23.98
£95 … … … … 28.23 3.07 1.32 24.92
£105 … … … … 29.49 2.86 1.25 25.90

to take account of rates paid for water and sewerage separately. 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 weeekly spending power of the unemployed man for the reasons given in the reply to the hon. Member on 15 October 1976—[Vol. 917, c.245–250]. The approximate weekly amount of such refunds, where payable, would, however, be as follows:

appropriate—from earnings or social security benefits.

  1. 2. There have been no previous spells of unemployment or sickness which would affect the amount of unemployment benefit and earnings-related supplement payable.
  2. 3. Means-tested benefits are taken up in full by working and unemployed families. In the case of family income supplement—FIS—where entitlement exists while at work, payment continues for the first six months of unemployment.
  3. 4. There are no tax allowances apart from personal allowances.

TABLE 2
MARRIED COUPLE: RENT £5.40: RATES £2.30: WORK EXPENSES £2.45
EMPLOYED
Normal earnings Tax NI Rent rebate Rate rebate Net weekly spending power
£ £ £ £ £
£30 … — 1.95 5.40 2.14 25.44
£35 … 0.02 2.28 4.35 1.74 28.64
£45 … 2.52 2.93 2.30 1.05 32.75
£55 … 5.31 3.58 0.60 0.45 37.01
£65 … 8.31 4.22 — — 42.32
£75 … 11.31 4.87 — — 48.67
£85 … 14.31 5.53 — — 55.01
£95 … 17.31 6.18 — — 61.36
£105 … 20.31 6.82 — — 67.72
UNEMPLOYED (weeks 3–28)
Former earnings UB Rent rebate Rate rebate Net weekly spending power
£ £ £ £
£30 … … … … 25.50 5.40 2.30 25.50
£35 … … … … 25.50 5.40 2.30 25.50
£45 … … … … 31.68 5.18 2.00 31.16
£55 … … … … 32.94 4.87 1.90 32.01
£65 … … … … 34.20 4.55 1.80 32.85
£75 … … … … 35.46 4.24 1.70 33.70
£85 … … … … 36.72 3.92 1.60 34.54
£95 … … … … 37.98 3.61 1.50 35.39
£105 … … … … 39.24 3.29 1.40 36.23
TABLE 3
MARRIED COUPLE WITH ONE CHILD AGED 3:
RENT £6.20; RATES £2.70; WORK EXPENSES £2.45; CHILD BENEFIT £4.00
EMPLOYED
Normal earnings Tax NI FIS Rent rebate Rate rebate Free welfare milk Net weekly spending power
£ £ £ £ £ £ £
£30 … … … — 1.95 8.00 4.72 1.94 0.95 36.31
£35 … … … 0.02 2.28 5.50 4.09 1.74 0.95 37.63
£45 … … … 2.52 2.93 0.50 3.12 1.41 0.95 38.18
£55 … … … 5.31 3.58 — 1.51 0.84 — 41.11
£65 … … … 8.31 4.22 — — 0.24 — 45.36
£75 … … … 11.31 4.87 — — — — 51.47
£85 … … … 14.31 5.53 — — — — 57.81
£95 … … … 17.31 6.18 — — — — 64.16
£105 … … … 20.31 6.82 — — — — 70.52
UNEMPLOYED (weeks 3–28)
Former earnings UB FIS Rent rebate Rate rebate Free welfare milk Net weekly spending power
£ £ £ £ £ £
£30 … … 26.35 8.00 5.63 2.23 0.95 38.26
£35 … … 26.35 5.50 6.20 2.43 0.95 36.53
£45 … … 32.16 0.50 6.05 2.37 0.95 37.13
£55 … … 33.79 — 5.77 2.28 — 36.94
£65 … … 35.05 — 5.46 2.18 — 37.79
£75 … … 36.31 — 5.14 2.08 — 38.63
£85 … … 37.57 — 4.83 1.97 — 39.47
£95 … … 38.83 — 4.51 1.87 — 40.31
£105 … … 40.09 — 4.20 1.77 — 41.16
TABLE 4
MARRIED COUPLE WITH TWO CHILDREN AGED 4 AND 6:
RENT £6.50; RATES £2.80; WORK EXPENSES £2.45; CHILD BENEFIT £8.00
EMPLOYED
Normal earnings Tax NI FIS Rent rebate Rate rebate Free school meals Free welfare milk Net weekly spending power
£ £ £ £ £ £ £ £
£30 … — 1.95 10.00 5.04 2.04 1.25 0.95 43.58
£35 … 0.02 2.28 7.50 4.41 1.84 1.25 0.95 44.90
£45 … 2.52 2.93 2.50 3.40 1.50 1.25 0.95 45.40
£55 … 5.31 3.58 — 2.12 1.05 1.25 — 46.78
£65 … 8.31 4.22 — 0.42 0.45 — — 49.59
£75 … 11.31 4.87 — — — — — 55.07
£85 … 14.31 5.53 — — — — — 61.41
£95 … 17.31 6.18 — — — — — 67.76
£105 … 20.31 6.82 — — — — — 74.12
UNEMPLOYED (weeks 3–28)
Former earnings UB FIS Rent rebate Rate rebate Free school meals Free welfare milk Net weekly spending power
£ £ £ £ £ £ £
£30 … … … 27.20 10.00 5.74 2.27 1.25 0.95 46.11
£35 … … … 27.20 7.50 6.36 2.47 1.25 0.95 44.43
£45 … … … 32.16 2.50 6.37 2.47 1.25 0.95 44.40
£55 … … … 34.64 — 6.38 2.47 1.25 — 43.44
£65 … … … 35.90 — 6.06 2.37 1.25 — 44.28
£75 … … … 37.16 — 5.75 2.27 1.25 — 45.13
£85 … … … 38.42 — 5.43 2.17 1.25 — 45.97
£95 … … … 39.68 — 5.12 2.07 1.25 — 46.82
£105 … … … 40.94 — 4.80 1.97 1.25 — 47.66
TABLE 5
MARRIED COUPLE WITH THREE CHILDREN AGED 3, 8 AND 12:
RENT £6.50; RATES £2.80; WORK EXPENSES £2.45; CHILD BENEFIT £12.00
EMPLOYED
Normal earnings Tax NI FIS Rent rebate Rate rebate Free school meals Free welfare milk Net weekly spending power
£ £ £ £ £ £ £ £
£30 … — 1.95 12.00 5.18 2.09 2.50 0.95 51.02
£35 … 0.02 2.28 9.50 4.55 1.89 2.50 0.95 52.34
£45 … 2.52 2.93 4.50 3.49 1.54 2.50 0.95 52.78
£55 … 5.31 3.58 — 2.56 1.21 2.50 — 52.63
£65 … 8.31 4.22 — 0.86 0.61 2.50 — 56.69
£75 … 11.31 4.87 — — — — — 59.07
£85 … 14.31 5.53 — — — — — 65.41
£95 … 17.31 6.18 — — — — — 71.76
£105 … 20.31 6.82 — — — — — 78.12
UNEMPLOYED (weeks 3–28)
Former earnings UB FIS Rent rebate Rate rebate Free school meals Free welfare milk Net weekly spending power
£ £ £ £ £ £ £
£30 … … … 28.05 12.00 5.66 2.24 2.50 0.95 54.10
£35 … … … 28.05 9.50 6.29 2.44 2.50 0.95 52.43
£45 … … … 32.16 4.50 6.50 2.52 2.50 0.95 51.83
£55 … … … 35.49 — 6.50 2.61 2.50 — 49.80
£65 … … … 36.75 — 6.49 2.51 2.50 — 50.95
£75 … … … 38.01 — 6.17 2.41 2.50 — 51.79
£85 … … … 39.27 — 5.86 2.31 2.50 — 52.64
£95 … … … 40.53 — 5.54 2.21 2.50 — 53.48
£105 … … … 41.79 — 5.23 2.10 2.50 — 54.32
TABLE 6
MARRIED COUPLE WITH FOUR CHILDREN AGED 3, 8, 11 AND 16:
RENT £7.50; RATES £3.20; WORK EXPENSES £2.45; CHILD BENEFIT £16.00
EMPLOYED
Normal earnings Tax NI FIS Rent rebate Rate rebate Free school meals Free welfare milk Net weekly spending power
£ £ £ £ £ £ £ £
£30 … — 1.95 13.50 6.04 2.41 3.75 0.95 57.55
£35 … 0.02 2.28 11.50 5.29 2.17 3.75 0.95 59.21
£45 … 2.52 2.93 6.50 4.19 1.81 3.75 0.95 59.60
£55 … 5.31 3.58 1.50 3.34 1.51 3.75 0.95 60.01
£65 … 8.31 4.22 — 1.89 1.00 3.75 0.95 62.91
£75 … 11.31 4.87 — — 0.40 2.50 — 64.57
£85 … 14.31 5.53 — — — — — 68.01
£95 … 17.31 6.18 — — — — — 74.36
£105 … 20.31 6.82 — — — — — 80.72
UNEMPLOYED (weeks 3–28)
Former earnings UB FIS Rent rebate Rate rebate Free school meals Free welfare milk Net weekly spending power
£ £ £ £ £ £ £
£30 … … … 28.90 13.50 6.31 2.50 3.75 0.95 61.21
£35 … … … 28.90 11.50 6.81 2.66 3.75 0.95 59.87
£45 … … … 32.16 6.50 7.25 2.80 3.75 0.95 58.71
£55 … … … 36.34 1.50 7.45 2.87 3.75 0.95 58.16
£65 … … … 37.60 — 7.50 2.88 3.75 0.95 57.98
£75 … … … 38.86 — 7.20 2.78 3.75 0.95 58.84
£85 … … … 40.12 — 6.88 2.68 3.75 — 58.73
£95 … … … 41.38 — 6.57 2.58 3.75 — 59.58
£105 … … … 42.64 — 6.25 2.48 3.75 — 60.42
NI = National Insurance Contribution.
UB = Unemployment Benefit.
FIS = Family Income Supplement.