HC Deb 10 June 1980 vol 986 cc138-40W
Mr. Ralph Howell

asked the Secretary of State for Social Services if he will update the reply given to the hon. Member for Norfolk, North, Official Report, 30 October 1979, column 496, showing net weekly spending power for one-parent families at earnings of up to £105 per week compared with spending power from supplementary benefit, ordinary and long-term rates, and assuming work expenses of £15 a week.

Mrs. Chalker

: The information requested is given in tables set out below. Table 3 shows the levels at which, on the basis of my hon. Friend's hypothetical assumptions including work expenses of £15 a week, there may no longer be title to means-tested benefits. My hon. Friend will appreciate that the figures relate only to the illustrative examples he has chosen.

In the DHSS tax/benefit model tables showing net weekly spending power for a range of working families, it is assumed that work expenses are £3 a week. This is on the basis of information about the cost of fares to work to heads of households using public transport. As my hon. Friend knows, copies of the DHSS tax/benefit model tables will shortly be placed in the Library.

TABLE 3
NET WEEKLY SPENDING POWER (£) OF A SINGLE MOTHER, WITH TWO CHILDREN AGED 4 AND 6, WORKING FULL-TIME WITH £15 WORK EXPENSES
Gross earnings Tax National insurance contribution Child benefits Family income supplement (FIS) Rent rebate Rates rebate Work expenses Free school meals Free welfare milk Net weekly spending power
29.70* 2.00 10.50 14.50 7.73 3 03 15.00 2.25 1.16 40.11
35.00 2.36 10.50 12.80 6.83 2.74 15.00 2.25 1.16 42.17
40.00 2.70 10.50 10.30 6.21 2.54 15.00 2.25 1.16 43.51
50.00 2.63 3.38 10.50 5.30 4.96 2.14 15.00 2.25 1.16 43.55
60.00 5.63 4.05 10.50 0.30 4.10 1.84 15.00 2.25 1.16 43.72
67.90† 8.00 4.58 10.50 2.80 1.38 15.00 2.25‡ 45.51
70.00 8.63 4.73 10.50 2.45 1.26 15.00 2.25 46.35
80.00 11.63 5.40 10.50 0.75 0.66 15.00 2.25 50.38
83.00 12.52 5.60 10.50 0.24 0.48 15.00 2.25 51.60
90.00 14.63 6.08 10.50 0.06 15.00 2.25 55.35
95.00 16.13 6.41 10.50 15.00 2.25 58.46
96.00 16.43 6.48 10.50 15.00 56.84
105.00 19.13 7.09 10.50 15.00 62.53
* Gross earnings needed to provide net weekly spending power equivalent to that available with supplementary allowance at ordinary rate, as m Table 1.
† Gross earnings needed to provide net weekly spending power equivalent to that available with supplementary allowance at long-term rate, as in Table 2.
‡Statutory provision of free school meals ceases when title to FIS ceases. Local education authorities have discretion to allow free or cheap school meals to other children and this table illustrates the case where an authority continues to apply the November 1979 conditions for entitlement.