§ Mr. Ralph Howellasked the Secretary of State for Social Services if he will publish a table, using the same basic assumptions as in his reply to the hon. Member for Norfolk, North, Official Report, 7 November 1979, column 213, comparing for each of a single person, a married couple, and couples with each of two and four children, net weekly spending power when at work with spending power during weeks, one, two and three to eight of sickness (a) under present legislation and (b) assuming implementation of the arrangements proposed in"Income During Initial Sickness" ", assuming in each case (i) that the employees are not at present covered by any employers' sick pay arrangements and (ii) that they have their sickness benefit made up to full pay by their employers, taking into account tax refunds and assuming normal weekly earnings of £55, £75, £95 and £115.
§ Mrs. Chalker[pursuant to her reply, 10 June 1980, c. 141–27]: I regret that it is not possible to provide all the information requested by my hon. Friend who, in any event, will appreciate that"Income During Initial Sickness"is a consultative document. However, I have set out in the tables below some illustrative figures of net weekly spending power in the first eight weeks of an employee's sickness. Tables (a)(i) and (a)(ii) illustrate the position as at November 1979 under the present scheme. Table (b)(i) illustrates the position of employees receiving employer's statutory sick pay (ESSP) only, had the proposed scheme been introduced in November 1979. The tables show only three days' sickness benefit or ESSP in week one. The remaining three days in that week have been treated as "waiting days."In many cases, wages for a preceding period of work would be paid 612W during the first week or so of sickness and there would normally be no need for any supplementary benefit. Where, however, there would be higher net weekly spending power with supplementary benefit, this has been shown in the tables.
In the period up to 1982, changes will take place other than the introduction of ESSP and these will affect net weekly spending power. For example, earnings-related supplement was payable with sickness benefit in November 1979, whereas the payments proposed in"Income During Initial Sickness"are based on the assumption that earnings-related supplement will have been abolished. It would, therefore, be misleading to regard the changes in net weekly spending power shown in the tables as the effect of the introduction of ESSP.
A table of net weekly spending under the proposed scheme where sick pay is made up to full pay has not been included. Although the precise shape of the arrangements for taxing benefits is not known, it is anticipated that ESSP will be taxable. In all these circumstances, employees would have had the same net weekly spending power as in work. Figures were given in my reply to my hon. Friend on 7 November.—[Vol. 973, c. 213–20]. For the reasons explained in that reply, refunds of income tax have not been included as part of net weekly spending power.
The assumptions on which the tables have been based all relate to November 1979. Other assumptions have been made as follows:
613WFor married couples, the wife has no personal income from earnings or social security benefits, apart from child benefit where appropriate;there are no tax allowances apart from personal allowances;there have been no previous spells of unemployment or sickness which would affect the amount of benefit and any earnings-related supplement payable; andmeans-tested benefits are taken up in full. In the case of family income supplement, payment is assumed to continue for the first six months of sickness.
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TABLES OF NET WEEKLY SPENDING POWER IN NOVEMBER 1979 FIRST EIGHT WEEKS OF EMPLOYEE'S SICKNESS TABLE (a)(i) PRESENT SCHEME—EMPLOYEE NOT COVERED BY EMPLOYER'S SICK PAY ARRANGEMENTS November 1979 Weeks Family type Previous earnings Sickness benefit Child benefit Family income supplement Rent Rent rebate £ £ £ £ £ £ One (3 days sickness benefit at flat rate) Single person 55,75, 9.25 — — 5.40 5.40 95,115 Married couple 55,75, 14.98 — — 5.40 5.40 95,115 Married couple with two children aged 4 55 16.68 8.00 2.80 6.50 6.50 and 6 75,95,115 16.68 8.00 — 6.50 6.50 Married couple with four children aged 3, 55 18.38 16.00 7.30 7.50 7.50 8, 11 and 16 75,95,115 18.38 16.00 — 6.50 6.50 Two (flat rate sickness benefit) Single person 55,75, 18.50 — — 5.40 5.40 95,115 Married couple 55,75, 29.95 — — 5.40 5.40 95,115 Married couple with two children aged 4 55 33.35 8.00 2.80 6.50 6.50 and 6 75,95,115 33.35 8.00 — 6.50 6.50 Married couple with four children aged 3, 55 36.75 16.00 7.30 7.50 7.50 8, 11 and 16 75,95,115 36.75 16.00 — 7.50 7.50 Three to eight (flat rate and earnings- Single person 55 25.94 — — 5.40 4.52 related supplement) 75 28.46 — — 5.40 3.89 95 30.98 — — 5.40 3.26 115 33.50 — — 5.40 2.82 Married couple 55 37.39 — — 5.40 5.28 75 39.91 — — 5.40 4.65 95 42.43 — — 5.40 4.02 115 44.95 — — 5.40 3.39 Married couple with two children aged 4 55 39.31 8.00 2.80 6.50 6.50 and 6 75 43.31 8.00 — 6.50 6.31 95 45.83 8.00 — 6.50 5.68 115 48.35 8.00 — 6.50 5.05 Married couple with tour children aged 3, 55 39.31 16.00 7.30 7.50 7.50 8, 11 and 16 75 46.71 16.00 — 7.50 7.50 95 49.23 16.00 — 7.50 7.28 115 51.75 16.00 — 7.50 6.65
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Weeks Family type Rate Rate rebate Free school meals Free welfare milk Net weekly spending power Net weekly spending power on supplementary benefit where £ £ £ £ £ £ One (3 days sickness benefit at flat rate) Single person 2.30 2.30 — — 9.25 18.30 Married couple 2.30 2.30 — — 14.98 29.70 Married couple with two children aged 4 2.80 2.80 1.50 1.05 30.03 44.65 and 6 2.80 2.80 1.50 1.05 27.23 44.65 Married couple with four children aged 3, 3.20 3.20 4.50 1.05 47.23 66.60 8, 11 and 16 3.20 3.20 4.50 1.05 39.93 66.60 Two (flat rate sickness benefit) Single person 2.30 2.30 — — 18.50 — Married couple 2.30 2.30 — — 29.95 — Married couple with two children aged 4 2.80 2.80 1.50 1.05 46.70 — and 6 2.80 2.80 1.50 1.05 43.90 44.65 Married couple with four children aged 3, 3.20 3.20 4.50 1.05 65.60 66.60 8,11 and 16 3.20 3.20 4.50 1.05 58.30 66.60 Three to eight (flat rate and earnings- Single person 2.30 1.79 — — 24.55 — related supplement) 2.30 1.59 — — 26.24 — 2.30 1.39 — — 27.93 — 2.30 1.23 — — 29.85 — Married couple 2.30 2.03 — — 37.00 — 2.30 1.83 — — 38.69 — 2.30 1.63 — — 40.38 — 2.30 1.43 — — 42.07 — Married couple with two children aged 4 2.80 2.55 1.50 1.05 52.41 — and 6 2.80 2.45 1.50 — 52.27 — 2.80 2.25 1.50 — 53.96 — 2.80 2.05 1.50 — 55.65 — Married couple with four children aged 3, 3.20 3.02 4.50 1.05 67.98 — 8, 11 and 16 3.20 3.01 4.50 1.05 68.07 — 3.20 2.81 4.50 — 69.12 — 3.20 2.61 4.50 — 70.81 —
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TABLE (a)(ii) PRESENT SCHEME—SICKNESS BENEFIT MADE UP TO FULL PAY BY EMPLOYER November 1979 Weeks Family type Previous earnings Sickness benefit Pay made up by employer Tax National insurance contribution Child benefit Family income supplement £ £ £ £ £ £ £ One (3 days sickness benefit at flat rate) Single person 55 9.25 45.75 6.28 2.97 — — 75 9.25 65.75 12.28 4.27 — — 95 9.25 85.75 18.28 5.57 — — 115 9.25 105.75 24.28 6.87 — — Married couple 55 14.98 40.02 1.28 2.60 — — 75 14.98 60.02 6.81 3.90 — — 95 14.98 80.02 12.81 5.20 — — 115 14.98 100.02 18.81 6.50 — — Married couple with two 55 16.68 38.32 0.85 2.49 8.00 2.80 children aged 4 and 6 75 16.68 58.32 6.30 3.79 8.00 — 95 16.68 78.32 12.30 5.09 8.00 — 115 16.68 98.32 18.30 6.39 8.00 — Married couple with four 55 18.38 36.62 0.43 2.38 16.00 7.30 children aged 3,8,11 and 16 75 18.38 56.62 5.79 3.68 16.00 — 95 18.38 76.62 11.79 4.98 16.00 — 115 18.38 96.62 17.79 6.28 16.00 — Two (flat rate sickness benefit) Single person 55 18.50 36.50 3.52 2.37 — — 75 18.50 56.50 9.51 3.67 — — 95 18.50 76.50 15.51 4.97 — — 115 18.50 96.50 21.51 6.27 — — Married couple 55 29.95 25.05 — 1.63 — — 75 29.95 45.05 2.54 2.93 — — 95 29.95 65.05 8.32 4.23 — — 115 29.95 85.05 14.32 5.53 — — Married couple with two 55 33.35 21.65 — 1.41 8.00 2.80 children aged 4 and 6 75 33.35 41.65 1.69 2.71 8.00 — 95 33.35 61.65 7.30 4.01 8.00 — 115 33.35 81.65 13.30 5.31 8.00 — Married couple with four 55 36.75 18.25 — — 16.00 7.30 children aged 3,8,11 and 16 75 36.75 38.25 0.84 2.49 16.00 — 95 36.75 58.25 6.28 3.79 16.00 — 115 36.75 78.25 12.28 5.09 16.00 — 620W621W
Weeks Family type Previous earnings Sickness benefit Pay made up by employer Tax National insurance contribution Child benefit Family income supplement £ £ £ £ £ £ £ Three to eight(flat rate and earnings- Single person 55 25.94 9.06 1.66 1.89 — — related supplement) 75 28.46 46.54 6.52 3.03 — — 95 30.98 64.02 11.76 4.16 — — 115 33.50 81.50 17.01 5.30 — — Married couple 55 37.39 17.61 — — — — 75 39.91 35.09 0.05 2.28 — — 95 42.43 52.57 4.58 3.42 — — 115 44.95 70.05 9.82 4.55 — — Married couple with two 55 39.31 15.69 — — 8.00 2.80 children aged 4 and 6 75 43.31 31.69 — 2.06 8.00 — 95 45.83 49.17 3.57 3.20 8.00 — 115 48.35 66.65 8.80 4.33 8.00 — Married couple with four 55 39.31 15.69 — — 16.00 7.30 children aged 3, 8,11 and 16 75 46.71 28.29 — 1.84 16.00 — 95 49.23 45.77 2.72 2.98 16.00 — 115 51.75 63.25 7.78 4.11 16.00 —
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Weeks Family type Rent Rent rebate Rates Rate rebate Free school meals Free welfare milk Net weekly spending power £ £ £ £ £ £ £ One (3 days sickness benefit at flat rate) Single person 5.40 — 2.30 0.24 — — 38.29 5.40 — 2.30 — — — 50.75 5.40 — 2.30 — — — 63.45 5.40 — 2.30 — — — 76.15 Married couple 5.40 2.48 2.30 1.11 — — 47.01 5.40 — 2.30 — — — 56.59 5.40 — 2.30 — — — 69.29 5.40 — 2.30 — — — 81.99 Married couple with two 6.50 3.94 2.80 1.69 1.50 1.05 61.34 children aged 4 and 6 6.50 1.00 2.80 0.66 — — 65.27 6.50 — 2.80 — — — 76.31 6.50 — 2.80 — — — 89.01 Married couple with four 7.50 5.26 3.20 2.16 4.50 1.05 77.76 children aged 3, 8,11 and 16 7.50 2.86 3.20 1.34 — — 75.03 7.50 — 3.20 0.14 — — 83.67 7.50 — 3.20 — — — 96.23 Two (flat rate sickness benefit) Single person 5.40 — 2.30 0.24 — — 41.65 5.40 — 2.30 — — — 54.12 5.40 — 2.30 — — — 66.82 5.40 — 2.30 — — — 79.52 Married couple 5.40 2.48 2.30 1.11 — — 49.26 5.40 — 2.30 — — — 61.83 5.40 — 2.30 — — — 74.75 5.40 — 2.30 — — — 87.45 Married couple with two 6.50 3.94 2.80 1.69 1.50 1.05 63.27 children aged 4 and 6 6.50 1.00 2.80 0.66 — — 70.96 6.50 — 2.80 — — — 82.39 6.50 — 2.80 — — — 95.09 Married couple with tour 7.50 5.26 3.20 2.16 4.50 1.05 80.57 children aged 3,8,11 and 16 7.50 2.86 3.20 1.34 — — 81.17 7.50 — 3.20 0.14 — — 90.37 7.50 — 3.20 — — — 102.93
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Weeks Family type Rent Rent rebate Rates Rate rebate Free school meals Free welfare milk Net weekly spending power £ £ £ £ £ £ £ Three to eight (flat rate and earnings- Single person 5.40 — 2.30 0.24 — — 43.99 related supplement) 5.40 — 2.30 — — — 57.75 5.40 — 2.30 — — — 71.38 5.40 — 2.30 — — — 84.99 Married couple 5.40 2.48 2.30 1.11 — — 50.89 5.40 — 2.30 — — — 64.97 5.40 — 2.30 — — — 79.30 5.40 — 2.30 — — — 92.93 Married couple with two 6.50 3.94 2.80 1.69 1.50 1.05 64.68 children aged 4 and 6 6.50 1.00 2.80 0.66 — — 73.30 6.50 — 2.80 — — — 86.93 6.50 — 2.80 — — — 100.57 Married couple with four 7.50 5.26 3.20 2.16 4.50 1.05 80.57 children aged 3, 8,11 and 16 7.50 2.86 3.20 1.34 — — 82.66 7.50 — 3.20 0.14 — — 94.74 7.50 — 3.20 — — — 108.41
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TABLE (b)(i) PROPOSED SCHEME—EMPLOYEE COVERED BY EMPLOYER'S STATUTORY SICK PAY ONLY Weeks Family type Previous earnings Employer's statutory sick pay Tax National insurance contribution Child benefit Family income supplement Rent £ £ £ £ £ £ £ One (3 days ESSP only) Single person 55,75, 15.00 — — — — 5.40 95,115 Married couple 55,75, 15.00 — — — — 5.40 95,115 Married couple with two 55 15.00 — — 8.00 2.80 6.50 children aged 4 and 6 75,95,115 15.00 — — 8.00 — 6.50 Married couple with four 55 15.00 — — 16.00 7.30 7.50 children aged 3,8,11 and 16 75,95,115 15.00 — — 16.00 — 7.50 Two to eight Single person 55,75, 30.00 1.90 1.95 — — 5.40 95,115 Married couple 55,75, 30.00 — 1.95 — — 5.40 95,115 Married couple with two 55 30.00 — 1.95 1.00 2.80 6.50 children aged 4 and 6 75,95,115 30.00 — 1.95 8.00 — 6.50 Married couple with four 55 30.00 — 1.95 16.00 7.30 7.50 children aged 3,8,11 and 16 75,95,115 30.00 — 1.95 16.00 — 7.50
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Weeks Family type Rent rebates Rates Rate rebate Free school meals Free welfare milk Net weekly spending power Net weekly spending power on supplementary benefit where higher £ £ £ £ £ £ £ One (3 days ESSP only) Single person 5.40 2.30 2.30 — — 15.00 18.30 Married couple 5.40 2.30 2.30 — — 15.00 29.70 Married couple with two 6.50 2.80 2.80 1.50 1.05 28.35 44.65 children aged 4 and 6 6.50 2.80 2.80 1.50 1.05 25.55 44.65 Married couple with four 7.50 3.20 3.20 4.50 1.05 43.85 66.60 children aged 3,8,11 and 16 7.50 3.20 3.20 4.50 1.05 36.55 66.60 Two to eight Single person 3.50 2.30 1.46 — — 23.41 — Married couple 5.40 2.30 2.30 — — 28.05 29.70 Married couple with two 6.50 2.80 2.80 1.50 1.05 41.40 44.65 children aged 4 and 6 6.50 2.-80 2.80 1.50 1.05 38.60 44.65 Married couple with four 7.50 3.20 3.20 4.50 1.05 56.90 66.60 children aged 3, 8,11 and 16 7.50 3.20 3.20 4.50 1.05 49.60 66.60
§ Sir Brandon Rhys Williamsasked the Secretary of State for Social Services if he will publish a table for each of a single person, a married couple and a couple with two children, comparing net weekly incomes when earning £100 per week with net weekly incomes, including and excluding tax refunds, during the weeks 1, 2, 3 to 8, 9 to 28 and 29 onwards of sickness (a) under the existing system, and (b) after the implementation of current Government proposals, including the recommendations in the Green Paper.
§ Mrs. Chalker[pursuant to her reply, 10 June, 1980, c. 148]: I regret that I cannot provide information in the particular form requested by my hon. Friend. Net weekly incomes would depend on a variety of family circumstances and other factors. In addition, it is not possible to anticipate the rates of benefit in force when all the current Government proposals have been implemented. It is also not possible to illustrate the effects of making benefits reckonable for tax because the precise shape of the arrangements for taxing benefits is not yet known.
However, so far as the first eight weeks of an employee's sickness are concerned, I refer my hon. Friend to my reply to my hon. Friend the Member for Norfolk, North (Mr. Howell) today. This gives some illustrative comparisons of net weekly spending power for hypothetical family types on the assumption that employer's statutory sick pay had been introduced in November 1979.
So far as weeks 9 to 28 of an employee's sickness are concerned, I refer my hon. Friend to my reply to my hon. Friend the Member for Norfolk North, on 18 June. [Vol. 986, c. 562–66.] Tables A1 and A2 in that reply gave some illustrative comparisons of net weekly spending power where unemployment benefit was payable with and without earnings-related supplement. The standard rates of sickness benefit are the same as those of unemployment benefit.
So far as weeks 29 onwards of an employee's sickness are concerned, my hon. Friend will appreciate that these would not be affected either by the introduction of employer's statutory sick pay or by the abolition of earnings-related supplement. The employer's statutory 630W sick pay proposals apply only to the first eight weeks of an employee's sickness; and earnings-related supplement is not payable with invalidity benefit.