§ Mr. Ralph Howellasked the Secretary of State for Social Services, further to his reply to the hon. Member for Norfolk, North—Official Report, 31 October, column 550—if he will republish the figures comparing minimum incomes in and out of working, but on the assumptions that family income supplement continues to be paid during the first months of unemployment, that there is entitlement to earnings-related supplement and that (a) the unemployed person is in receipt of tax refunds and (b) he is not.
§ Mrs. ChalkerThe information requested is set out in the attached table. As in the reply given to my hon. Friend on 31 October, the table is based on the rates of benefit and the assumptions applicable on 25 July and relates to a married couple with two children aged 4 and 6. It is not considered realistic to include income tax refunds as part of the net weekly spending power of an unemployed man since these refunds are not received automatically—and in many 745W cases are not paid until the man has returned to work—and because their duration depends on the point in the tax year when unemployment occurs. The approximate weekly amount of such refunds would however, be £8.75 if tax were paid at the rate of 25 per cent. only and £11.20 if the rate of tax paid was 25 per cent. and 30 per cent. The assumptions made to arrive at the minimum net weekly spending power are as follows:
- 1. Housing costs: rent, £6.50; rates, £2.80.
- 2. Work expenses: £2.45.
- 3. Child benefit: £8.00.
Family circumstances Net weekly spending power Unemployed and receiving: a. unemployment benefit plus earnings-related supplement with former earnings of:— 1. £50 £42.98 2. £70 £44.71 3. £90 £46.39 b. supplementary benefit £37.15 Working and earning: a. £50 £44.76 b. £70 £52.04 c. £90 £64.59