§ Mr. Ralph Howellasked the Secretary of State for Social Services (1) if he will publish a table showing the net weekly spending power of a man with a wife and two children whose gross wage was £50. £60, £70, £80, £90 and £100 per week for the first week in December 1978, compared with his net weekly spending power for the first week of January 1979, if he had received a 5 per cent. wage increase dating from mid-December, using the same assumptions as in the answer to the question of the hon. Member for Norfolk, North, Official Report, 30 November 1978, c. 298; and what was the percentage increase in each case;
(2) what increase in net spending power a man with a wife and two children would receive if in November 1978 he was earning £50, £60, £70, £80, £90 or £100 a week and in January 1979 he received (a) a 5 per cent. increase in earnings, or (b) an increase of £3.50 per week.
§ Mr. Orme, pursuant to his replies [Official Report, 18 January 1979; Vol. 960, c. 905–6, and 8 February 1979, Vol. 962, c. 282], gave the following information:
I refer the hon. Member to my reply to his question on 5 February—[Vol. 962, c. 62–4.]—and earlier replies, in which I have explained that the concept of net weekly spending power involves factors, including yearly wage increases, which ordinarily change once in 12 months. For that reason, comparisons, if they are to have any real validity, are made over periods of 12 months. Comparisons made over periods of only a few weeks exclude changes in the rest of the 12 months period and so present a less balanced illustration of variations in net weekly spending power. Nevertheless, in this instance special calculations have been made on the basis requested by the hon. Member and the figures are given in the following table. There are three lines in the table for each of the six levels of gross earnings specified by the hon. Member. The first line shows the specified earnings in November and the first week of December 1978: the second and third lines show those earnings in the first week of January 1979 after having been increased by 5 per cent. and £3.50 respectively.
713W
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MARRIED COUPLE WITH TWO CHILDREN AGED FOUR AND SIX £p Gross earnings Tax National insurance contribution Child benefit Rent Rent rebate Rates Rate rebate Work expenses Free school meals Free welfare milk Net weekly spending power Percentage increase in net weekly spending power 50.00 … … … 4.35 3.25 6.00 6.30 3.19 2.35 1.20 2.10 1.25 0.95 44.24 52.50 … … … 5.16 3.41 6.00 6.30 2.77 2.35 1.05 2.10 1.25 0.95 45.20 2.2 53.50 … … … 5.49 3.47 6.00 6.30 2.61 2.35 0.99 2.10 1.25 0.95 45.61 3.1 60.00 … … … 7.65 3.90 6.00 6.30 1.49 2.35 0.60 2.10 1.25 — 47.04 63.00 … … … 8.64 4.09 6.00 6.30 0.98 2.35 0.42 2.10 1 25 — 48.17 2.4 63.50 … … … 8.79 4.12 6.00 6.30 0.90 2.35 0.39 2.10 1.25 — 48.38 2.8 70.00 … … … 10.95 4.55 6.00 6.30 — 2.35 — 2.10 — — 49.75 73.50 … … … 12.09 4.78 6.00 6.30 — 2.35 — 2.10 — — 51.88 4.3 73.50 … … … 12.09 4.78 6.00 6.30 — 2.35 — 2.10 — — 51.88 4.3 80.00 … … … 14.25 5.20 6.00 6.30 — 2.35 — 2.10 — — 55.80 84.00 … … … 15.57 5.46 6.00 6.30 — 2.35 — 2.10 — — 58.22 4.3 83.50 … … … 15.39 5.42 6.00 6.30 — 2.35 — 2.10 — — 57.94 3.8 90.00 … … … 17.55 5.85 6.00 6.30 — 2.35 — 2.10 — — 61.85 94.50 … … … 19.02 6.14 6.00 6.30 — 2.35 — 2.10 — — 64.59 4.4 93.50 … … … 18.69 6.07 6.00 6.30 — 2.35 — 2.10 — — 63.99 3.5 100.00 … … … 20.85 6.50 6.00 6.30 — 2.35 — 2.10 — — 67.90 105.00 … … … 22.50 6.82 6.00 6.30 — 2.35 — 2.10 — — 70.93 4.5 103.50 … … … 21.99 6.72 6.00 6.30 — 2.35 — 2.10 — — 70.04 3.2 Notes: Free school meals and free welfare milk are awarded for twelve months and therefore will not normally change with a pay rise. The assumptions made about the ages of the children, the housing expenses for this size of family and the work expenses are shown in the Table. It has also been assumed that:— (i) the couple have no other personal income; (ii) national insurance contributions 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.