HC Deb 23 March 1979 vol 964 cc286-8W
Mr. Ralph Howell

asked the Secretary of State for Social Services if he will publish a table on the same basis as his reply to the hon. Member for Norfolk, North, Official Report, 30 November 1978, showing the effect of a 9 per cent. pay increase on the net weekly spending power of a married couple with two children whose current earnings are £45, £50, £55, £65, £75, £85, £105, £115 and £125, assuming for the lower paid that (a) family income supplement is adjusted immediately, and (b) family income supplement remains unchanged, and showing the increases both in money terms and as percentage increases in spending power.

Mr. Orme

, pursuant to his reply—[Official Report, 5 March 1979; Vol. 963, c. 511–2], gave the following information:

For the reasons given in my reply to the hon. Member on 7 March 1979—[Vol. 963, c. 712–14.]—the comparisons requested have been made over the period of 12 months ending November 1978.

MARRIED COUPLE AND TWO CHILDREN AGED 4 AND 6
Table (a)—Family income supplement (FIS) adjusted during the twelve months
Earnings Tax N.I. Child benefit FIS Rent Rent rebate Rates Rate rebate Work expenses Free school meals Free welfare milk Net weekly spending power increase (£) Percentage increase
November—
1977 … … … 45.00 3.39 2.59 2.50 1.40 5.60 3.28 2.20 1.29 2.00 1.25 0.81 39.75 4.54 11.4
1978 … … … 49.05 4.02 3.19 6.00 0.50 6.30 3.27 2.35 1.23 2.10 1.25 0.95 44.29
1977 … … … 50.00 5.09 2.88 2.50 — 5.60 2.67 2.20 1.08 2.00 1.25 0.81 40.54 4.46 11.0
1978 … … … 54.50 5.82 3.54 6.00 — 6.30 2.43 2.35 0.93 2.10 1.25 — 45.00
1977 … … … 55.00 6.79 3.16 2.50 — 5.60 1.82 2.20 0.78 2.00 1.25 — 41.60 5.44 13.1
1978 … … … 59.95 7.62 3.90 6.00 — 6.30 1.50 2.35 0.61 2.10 1.25 — 47.04
1977 … … … 65.00 10.19 3.74 2.50 — 5.60 — 2.20 0.18 2.00 1.25 — 45.20 5.07 11.2
1978 … … … 70.85 11.22 4.61 6.00 — 6.30 — 2.35 — 2.10 — — 50.27
1977 … … … 75.00 13.59 4.31 2.50 — 5.60 — 2.20 — 2. — — 49.80 7.08 14.2
1978 … … … 81.75 14.81 5.31 6.00 — 6.30 — 2.35 — 2.10 — — 56.88
1977 … … … 85.00 16.99 4.89 2.50 — 5.60 — 2.20 — 2.00 — — 55.82 7.65 13.7
1978 … … … 92.65 18.41 6.02 6.00 — 6.30 — 2.35 — 2.10 — — 63.47
1977 … … … 105.00 23.79 6.04 2.50 — 5.60 — 2.20 — 2.00 — — 67.87 8.79 13.0
1978 … … … 114.45 25.60 7.44 6.00 — 6.30 — 2.35 — 2.10 — — 76.66
1977 … … … 115.00 27.19 6.04 2.50 — 5.60 — 2.20 — 2.00 — — 74.47 9.13 12.3
1978 … … … 125.35 29.20 7.80 6.00 — 6.30 — 2.35 — 2.10 — — 83.60
1977 … … … 125.00 30.59 6.04 2.50 — 5.60 — 2.20 — 2.00 — — 81.07 9.83 12.1
1978 … … … 136.25 32.80 7.80 6.00 — 6.30 — 2.35 — 2.10 — — 90.90
Table (b)—Family income supplement (FIS) unchanged; this would not occur in reality over the period involved
November—
1977 … … … 45.00 3.39 2.59 2.50 1.40 5.60 3.28 2.20 1.29 2.00 1.25 0.81 39.75 5.24 13.2
1978 … … … 49.05 4.02 3.19 6.00 1.40 6.30 3.12 2.35 1.18 2.10 1.25 0.95 44.99

Notes:—

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 tables. 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.