§ Mr. John MacKayasked the Chancellor of the Exchequer what is the income after tax of a married man with two children paying rent and rates of £5 per week (a) unemployed and (b) employed and earning (i) 60, (ii) £65 and (iii) £70 per week.
§ Mrs. ChalkerI have been asked to reply.
The tables give the net weekly spending power on the basis of the assumptions set out below. These tables, therefore, relate only to the particular illustrative situations shown and have no general application or validity out of context.
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NET WEEKLY SPENDING POWER OF MARRIED MAN WITH TWO YOUNG CHILDREN, ON GIVEN ASSUMPTIONS (a) UNEMPLOYED Former earnings Unemployment benefit Child benefit Family income supplement Rent and rates rebates Free school meals Free welfare milk Net weekly spending power £ £ £ £ £ £ £ £60 … … … … … 41.42 8.00 0.30 5.00 1.50 1.05 52.27 £65 … … … … … 42.05 80.0 — 5.00 1.50 — 51.55 £70 … … … … … 42.68 80.0 — 5.00 1.50 — 52.18
(b) EMPLOYED Normal earnings Tax National insurance contribution Travel to work expenses Child benefit Family income supplement Rent and rates rebates Free school meals Free welfare milk Net weekly spending power £ £ £ £ £ £ £ £ £ £60 … … … 6.81 3.90 2.45 8.00 0.30 3.46 1.50 1.05 56.15 £65 … … … 8.31 4.22 2.45 8.00 — 1.38 1.50 — 55.90 £70 … … … 9.81 4.55 2.45 8.00 — 0.23 — — 56.42 Assumptions on which the Tables are based:
(i) The children are aged 4 and 6.
(ii) The man has travel-to-work expenses of £2.45.
(iii) The wife has no personal income from earnings, social security benefits or other sources.
(iv) There have been no previous spells of unemployment or sickness which would affect the amount of unemployment benefit and earnings-ralated supplement payable.
(v) The means-tested benefits are taken up in full; in the case of family income supplement, payment continues for the first six months of unemployment.
(vi) There are no tax allowances apart from the man's personal allowance.
Note: The DHSS tax-benefit model for November 1979 has been used in the production of the tables. The weekly value of free school meals and free welfare milk for one child is now £1.75 and £1.16
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