HC Deb 07 November 1979 vol 973 cc213-20W
Mr. Ralph Howell

asked the Secretary of State for Social Services if he will update, in line with benefit changes due to take effect next November, the reply to the hon. Member for Norfolk, North, on 30 November 1978, Official Report, column 298, showing the relative financial position in and out of work for each family grouping, on the assumption that earnings or previous earnings were £35, £45, £55, £65, £75, £85, £95, £105, and £115, using the new rates of benefit and the new entitlement levels due to take effect in November, and showing the approximate weekly value of tax refunds when sick or unemployed.

Mrs. Chalker

The information requested is set out in the attached tables, which give illustrative details as at November 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 to 28 of unemployment. 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 weekly spending power of the unemployed man, for the reason given in the reply to the hon. Member on 15 October 1976.—[Vol. 910, c.245–50.] The approximate weekly amount of such refunds, where payable, would, however, be as follows:

FAMILY TYPE AND WEEKLY TAX REFUND
Tax paid at 25 per cent. only
£
Single person 5.60
Married couple 8.75
Married couple plus one child aged 3 8.75
Married couple plus two children aged 4 and 6 8.75
Married couple plus three children aged 3, 8 and 12 8.75
Married couple plus four children aged 3, 8, 11 and 16 8.75
Tax paid at 25 per cent. plus 30 per cent.
£
Single person 7.45
Married couple 11.20
Married couple plus one child aged 3 11.20
Married couple plus two children aged 4 and 6 11.20
Married couple plus three children aged 3, 8 and 12 11.20
Married couple plus four children aged 3, 8, 11 and 16 11.20

Receipt of tax refunds may affect entitlement to free school meals but is unlikely to affect any other means-tested benefits. Figures are not readily available to show in each case the maximum number of weeks for which tax refunds would be payable and could be obtained only 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 appropriate—from earnings or social security benefits.

2. There have been no previous spells of unemployment or sickness which would affect the amount of unemployment benefit and earnings related supplement payable.

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,

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
£ £ £ £ £ £
35 3.15 2.28 3.50 1.46 24.38
45 6.06 2.93 1.72 0.84 28.42
55 9.06 3.58 — 0.24 32.45
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
115 27.06 7.48 — — 70.31
UNEMPLOYED (weeks 3–28)
Former earnings UB Rent rebate Rate rebate Net weekly spending power
£ £ £ £ £
35 23.31 5.18 2.00 22.79
45 24.68 4.83 1.89 23.70
55 25.94 4.52 1.79 24.55
65 27.20 4.20 1.69 25.39
75 28.46 3.89 1.59 26.24
85 29.72 3.57 1.49 27.08
95 30.98 3.26 1.39 27.93
105 32.24 3.04 1.31 28.89
115 33.50 2.82 1.23 29.85

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
£ £ £ £ £ £
35 0.02 2.28 5.40 2.30 30.25
45 2.52 2.93 4.63 1.82 35.85
55 5.31 3.58 2.48 1.11 39.55
65 8.31 4.22 0.78 0.51 43.61
75 11.31 4.87 — — 48.67
85 14.31 5.53 — — 55.01
95 17.31 6.18 — — 61.36
105 20.51 6.82 — — 67.72
115 23.31 7.48 — — 74.06
UNEMPLOYED (weeks 3–28)
Former earnings UB Rent rebate Rate rebate Net weekly spending power
£ £ £ £ £
35 29.95 5.40 2.30 29.95
45 32.16 5.40 2.30 32.16
55 37.39 5.28 2.03 37.00
65 38.65 4.97 1.93 37.85
75 39.91 4.65 1.83 38.69
85 41.17 4.33 1.73 39.53
95 42.43 4.02 1.63 40.38
105 43.69 3.70 1.53 41.22
115 44.95 3.39 1.43 42.07

payment continues for the first six months of unemployment

4. There are no tax allowances apart from personal allowances.

These tables relate only to the particular illustrative situations quoted, and have no general application and no validity if quoted out of context without stating the assumptions used.

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
£ £ £ £ £ £ £ £
35 0.02 2.28 10.50 5.91 2.32 1.05 45.13
45 2.52 2.93 5.50 4.66 1.92 1.05 45.33
55 5.7[...] 3.58 0.50 3.51 1.55 1.05 45.37
65 8.31 4.22 — 1.89 0.97 — 47.98
75 11.31 4.87 — — 0.38 — 51.85
85 14.31 5.53 — — — — 57.81
95 17.31 6.18 — — — — 64.16
105 20.31 6.82 — — — — 70.52
115 23.31 7.48 — — — — 76.86
UNEMPLOYED (weeks 3–28)
Former earnings UB FIS Rent rebate Rate rebate Free welfare milk Net weekly spending power
£ £ £ £ £ £ £
35 31.65 10.50 5.50 2.19 1.05 45.99
45 32.16 5.50 6.20 2.55 1.05 42.56
55 39.09 0.50 6.14 2.39 1.05 44.27
65 40.35 — 5.95 2.33 — 43.73
75 41.61 — 5.63 2.23 — 44.57
85 42.87 — 5.31 2.13 — 45.41
95 44.13 — 5.00 2.03 — 46.26
105 45.39 — 4.68 1.93 — 47.10
115 46.65 — 4.37 1.83 — 47.95

TABLE 4
MARRIED COUPLE WITH TWO CHILDREN AGED 4 AND 6. RENT £6.50; RATES £2.80; WORK EXPENSE £2.45: CHILD BENEFIT £8.00
EMPLOYED
Normal earnings Tax NI FIS Rent rebate Rate rebate Free school meals Free welfare milk 7 Net weekly spending power
£ £ £ £ £ £ £ £ £
35 0.02 2.28 12.80 6.44 2.49 1.50 1.05 53.23
45 2.52 2.93 7.80 5.19 2.09 1.50 1.05 53.43
55 5.31 3.58 2.80 3.94 1.69 1.50 1.05 53.34
65 8.31 4.22 — 2.70 1.26 1.50 — 54.18
75 11.31 4.87 — 1.00 0.66 — — 56.73
85 14.31 5.53 — — 0.06 — — 61.47
95 17.31 6.18 — — — — — 67.76
105 20.31 6.82 — — — — — 74.12
115 23.31 7.48 — — — — — 80.46
UNEMPLOYED (weeks 3–28)
Former earnings UB FIS Rent rebate Rate rebate Free school meals Free welfare milk Net weekly spending power
£ £ £ £ £ £ £ £
35 33.35 12.80 5.60 2.22 1.50 1.05 55.22
45 33.35 7.80 6.50 2.62 1.50 1.05 51.52
55 39.31 2.80 6.50 2.55 1.50 1.05 52.41
65 42.05 — 6.50 2.55 1.50 — 51.30
75 43.31 — 6.31 2.45 1.50 — 52.27
85 44.57 — 5.99 2.35 1.50 — 53.11
95 45.83 — 5.68 2.25 1.50 — 53.96
105 47.09 — 5.36 2.15 1.50 — 54.80
115 48.35 — 5.05 2.05 1.50 — 55.65

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
£ £ £ £ £ £ £ £ £
35 0.02 2.28 15.00 6.50 2.61 3.00 1.05 61.11
45 2.52 2.93 10.00 5.56 2.21 3.00 1.05 61.62
55 5.31 3.58 5.00 4.31 1.81 3.00 1.05 61.53
65 8.31 4.22 — 3.33 1.48 3.00 — 60.53
75 11.31 4.87 — 1.63 0.88 3.00 — 64.58
85 14.31 5.53 — — 0.28 — — 65.69
95 17.31 6.18 — — — — — 71.76
105 20.31 6.82 — — — — — 78.12
115 23.31 7.48 — — — — — 84.46
UNEMPLOYED (weeks 3–28)
Former earnings UB FIS Rent rebate Rate rebate Free school meals Free welfare milk Net weekly spending power
£ £ £ £ £ £ £ £
35 35.05 15.00 5.55 2.21 3.00 1.05 64.56
45 35.05 10.00 6.50 2.61 3.00 1.05 60.91
55 39.31 5.00 6.50 2.67 3.00 1.05 60.23
65 43.75 — 6.50 2.71 3.00 — 58.66
75 45.01 — 6.50 2.61 3.00 — 59.82
85 46.27 — 6.49 2.51 3.00 — 60.97
95 47.53 — 6.18 2.41 3.00 — 61.82
105 48.79 — 5.86 2.31 3.00 — 62.66
115 50.05 — 5.55 2.21 3.00 — 63.51

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
£ £ £ £ £ £ £ £ £
35 0.02 2.28 16.50 7.50 3.03 4.50 1.05 68.13
45 2.52 2.93 12.30 6.51 2.56 4.50 1.05 69.32
55 5.31 3.58 7.30 5.26 2.16 4.50 1.05 69.23
65 8.31 4.22 2.30 4.17 1.80 4.50 1.05 69.14
75 11.31 4.87 — 2.86 1.34 4.50 1.05 71.42
85 14.31 5.53 — 1.16 0.74 4.50 — 74.41
95 17.31 6.18 — — 0.14 — — 74.50
105 20.31 6.82 — — — — — 80.72
115 23.31 7.48 — — — — — 87.06
UNEMPLOYED (weeks 3–28)
Former earnings UB FIS Rent rebate Rate rebate Free school meals Free welfare milk Net weekly spending power
£ £ £ £ £ £ £ £
35 36.75 16.50 6.27 2.49 4.50 1.05 72.86
45 36.75 12.30 7.32 2.82 4.50 1.05 70.04
55 39.31 7.30 7.50 3.02 4.50 1.05 67.98
65 45.45 2.30 7.50 2.93 4.50 1.05 69.03
75 46.71 — 7.50 3.01 4.50 1.05 68.07
85 47.97 — 7.50 2.91 4.50 — 68.18
95 49.23 — 7.28 2.81 4.50 — 69.12
105 50.49 — 6.96 2.71 4.50 — 69.96
115 51.75 — 6.65 2.61 4.50 — 70.81
NI = National Insurance.
UB = Unemployment Benefit.
FIS = Family Income Supplement.