HC Deb 27 October 1980 vol 991 cc193-206W
Mr. Ralph Howell

asked the Secretary of State for Social Services (1) if he will update the reply to the Member for Norfolk, North, 1 May, c. 660–70, by setting out the comparable position in November when the new rates of benefits will be in force, and assuming in his reply that earnings-related unemployment benefit has been abolished;

(2) if he will update the reply to the hon. Member for Norfolk, North, 1 May,

c. 660–70, by setting out the comparable position in November when the new rates of benefits will be in force, and assuming that the unemployed are drawing supplementary benefits only;

(3) If he will update the reply to the hon. Member for Norfolk, North, 1 May,

c. 660–70, by setting out the comparable position in November when the new rates of benefits will be in force.

Mrs. Chalker

[pursuant to her reply, 23 May 1980, c. 460): The tables below give illustrative details, as at November 1980, of the net weekly spending power for the family types specified, where the head of the family is employed and during weeks 3 to 28 of unemployment in three different situations. when earnings-related supplement is in payment; if earnings related suplement had been abolished; and when supplementary benefit is in payment.

These tables relate only to the particular illustrative situations described and have no general application. They should not be quoted out of context and without stating the assumptions on which they have been based.

The assumptions made about the ages of the children and the housing and travel to work expenses are shown at the head of the table. Other assumptions are as follows:

  1. 1. for married couples, the wife has no personal income from earings or social security benefits (apart from child benefit, where appropriate);
  2. 2. there has been no previous spells of unemployment or sickness which would affect the amount of unemployment benefit and earnings-related supplement payable;
  3. 3. where appropriate, earnings-related supplement has been calculated by deflating the recent earnings to a point in the relevant tax year (1978–79 for earnings-related supplement payable from 1 January 1980) by the change in the index of average earnings over that period;
  4. 4. 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, payment is assumed to continue for the first six months of unemployment;
  5. 5. there are no tax allowances apart from personal allowances;
  6. 6. that the charge made for a school meal is 45 pence and that local authorities continue to award free school meals on grounds of low income, applying the November 1979 conditions of entitlement.

Under the Education Act 1980, the nationally-prescribed charge and remission arrangements for school meals were ended. Local education authorities are now able to decide their own charging policies for school meals, including the policy for remitting the charge. Authorities are, however, subject to a statutory minimum requirement, that free provision must be made for children whose parents receive supplementary benefit (SB) or FIS. The effects of keeping to this minimum requirement are also shown in the tables.

Table 1 — Single Person
(A) EMPLOYED: TRAVEL TO WORK EXPENSES £3.55 RENT £7.70 RATES £2.90
Normal earnings Tax NI Rent rebate Rate rebate Net weekly spending power
£ £ £ £ £ £
35.00 2.57 2.36 7.00 2.50 25.42
45.00 5.57 3.04 4.53 1.71 28.48
55.00 8.57 3.71 2.83 1.11 32.51
65.00 11.57 4.39 1.13 0.51 36.53
75.00 14.57 5.06 — — 41.22
85.00 17.57 5.74 — — 47.54
95.00 20.57 6.41 — — 53.87
105.00 23.57 7.09 — — 60.19
115.00 26.57 7.76 — — 66.52
125.00 29.57 8.44 — — 72.84
(B) UNEMPLOYED: WEEKS 3 TO 28 - EARNINGS-RELATED SUPPLEMENT IN PAYMENT
Former earnings UB Rent rebate Rate rebate Net weekly spending power
£ £ £ £ £
35.00 23.84 7.39 2.63 23.26
45.00 25.73 6.91 2.47 24.51
55.00 26.93 6.61 2.38 25.32
65.00 28.13 6.31 2.28 26.12
75.00 29.33 6.01 2.19 26.93
85.00 30.54 5.71 2.09 27.74
95.00 31.74 5.41 1.99 28.54
105.00 32.94 5.11 1.90 29.35
115.00 34.14 4.81 1.80 30.15
125.00 35.34 4.54 1.71 30.99
(C) UNEMPLOYED: WEEKS 3 TO 28 - EARNINGS-RELATED SUPPLEMENT ABOLISHED
UB Rent rebate Rate rebate Net weekly spending power
£ £ £ £
20.65 7.70 2.88 20.63
Note: could be eligible for supplementary benefit as in Table 1(D).
(D) UNEMPLOYED: IN RECEIPT OF SUPPLEMENTARY BENEFIT INSTEAD OF RENT AND RATE REBATES
Net weekly spending power—£21.30

ABBREVIATIONS USED THROUGHOUT THESE TABLES

NI = National insurance contribution.

UB = Unemployment benefit.

FIS = Family income supplement.

Table 2 — Married Couple
(A) EMPLOYED: TRAVEL TO WORK EXPENSES £3.55 RENT £7.70 RATES £2.90
Normal earning Tax NI Rent rebate Rate rebate Net weekly spending power
£ £ £ £ £ £
35.00 — 2.36 7.70 2.90 29.09
45.00 1.13 3.04 7.70 2.90 37.28
55.00 4.13 3.71 o.20 2.24 41.45
65.00 7.13 4.39 3.99 1.52 44.84
75.00 10.13 5.06 2.29 0.92 48.87
85.00 13.13 5.74 0.59 0.32 52.89
95.00 16.13 6.41 — — 58.31
105.00 19.13 7.09 — — 64.63
115.00 22.13 7.76 — — 70.96
125.00 25.13 8.44 — — 77.28
(B) UNEMPLOYED: WEEKS 3 TO 28 - EARNINGS-RELATED SUPPLEMENT IN PAYMENT
Former earnings UB Rent rebate Rate rebate Net weekly spending power
£ £ £ £ £
35.00 33.40 7.70 2.90 33.40*
45.00 33.40 7.70 2.90 33.40*
55.00 37.46 7.70 2.88 17.44
65.00 40.88 7.32 2.61 40.21
75.00 42.08 7.02 2.51 41.01
85.00 43.29 6.72 2.41 41.82
95.00 44.49 6.42 2.32 42.63
105.00 45.69 6.12 2.22 43.43
115.00 46.89 5.82 2.12 44.23
125.00 48.09 5.52 2.03 45.04
Note: * could be eligible for supplementary benefit as in table 2(D).
(C) UNEMPLOYED: WEEKS 3 TO 28 - EARNINGS-RELATED SUPPLEMENT ABOLISHED
UB Rent rebate Rate rebate Net weekly spending power
£ £ £ £
33.40 7.70 2.90 33.40
Note: could be eligible for supplementary benefit as in Table 2(D).
(D) UNEMPLOYED: IN RECEIPT OF SUPPLEMENTARY BENEFIT INSTEAD OF RENT AND RATE REBATES
Net weekly spending power—£34.60.

Table 3 — Married couple with one child aged 3
(A) EMPLOYED: TRAVEL FO WORK EXPENSES £3.55 RENT £8.40 RATES £3.45 CHILD BENEFIT £4.75
Normal earnings Tax NI FIS Rent rebate Rate rebate Free welfare milk Net weekly spending power
£ £ £ £ £ £ £ £
35.00 — 2.36 16.00 8.40 3.28 1.19 50.86
45.00 1.13 3.04 11.00 7.58 7.88 1.19 52.83
55.00 4.13 3.71 6.00 6.33 2.48 1.19 52.51
65.00 7.13 4.39 1.00 5.08 2.08 1.19 52.18
75.00 10.13 5.06 — 3.54 1.54 — 54.24
85.00 13.13 5.74 — 1.84 0.94 — 58.26
95.00 16.13 6.41 — — 0.34 — 62.15
105.00 19.13 7.09 — — — — 68.13
115.00 22.13 7.76 — — — — 74.46
125.00 25.13 8.44 — — — — 80.73
(B) UNEMPLOYED: WEEKS 3 TO 28 - EARNINGS-RELATED SUPPLEMENT IN PAYMENT
Former earnings UB FIS Rent rebate Rate rebate Free welfare milk Net weekly spending power
£ £ £ £ £ £ £
35.00 34.65 16.00 6.52 2.54 1.19 53.80
45.00 34.65 11.00 7.77 2.94 1.19 50.45
55.00 37.46 6.00 8.31 3.12 1.19 48.98
65.00 42.13 1.00 8.39 3.14 1.19 48.75
75.00 43.33 — 8.34 3.13 — 47.70
85.00 44.54 — 8.04 3.03 — 48.51
95.00 45.74 — 7.74 2.94 — 49.32
105.00 46.94 — 7.41 2.84 — 50.12
115.00 48.14 — 7.14 2.74 — 50.92
125.00 49.34 — 6.81 2.65 — 51.73
(C) UNEMPLOYED: WEEKS 3 TO 28 - EARNINGS RELATED SUPPLEMENT ABOLISHED
Former earnings UB FIS Rent rebate Rate rebate Free welfare milk Net weekly spending power
£ £ £ £ £ £ £
35.00 34.65 16.00 6.52 2.54 1.19 53.80
45.00 34.65 11.00 7.77 2.94 1.19 50.45
55.00 34.65 6.00 8.40 3.34 1.19 46.48
65.00 34.65 1.00 8.40 3.45 1.19 41.59**
75–125 34.65 — 8.40 3.45 1.19 40.59**
Note: ** could be eligible for supplementary benefit as in table 3(D).
(D) UNEMPLOYED: IN RECEIPT OF SUPPLEMENTARY BENEFIT INSTEAD OF RENT AND RATE REBATES
Net weekly spending power—£44.49
Table 4 — Married couple with two children aged 4 and 6
(A) EMPLOYED: TRAVEL TO WORK EXPENSES £3.55, RENT £8.80, RATES £3.55, CHILD BENEFIT £9.50
Normal earnings Tax NI FIS Rent rebate Rate rebate Free school meals Free welfare milk Net weekly spending power
£ £ £ £ £ £ £ £ £
35.00 — 2.36 18.50 8.80 3.53 2.25 1.19 60.51
45.00 1.13 3.04 14.50 8.16 3.05 2.25 1.19 63.58
55.00 4.13 3.71 9.50 6.91 2.65 2.25 1.19 63.26
65.00 7.13 4.39 4.50 5.66 2.25 2.25 1.19 62.93
75.00 10.13 5.06 — 4.60 1.89 2.25* — 62.15*
85.00 13.13 5.74 — 2.90 1.29 2.25* — 66.17*
95.00 16.13 6.41 — 1.20 0.69 — — 67.95
105.00 19.13 7.09 — — 0.09 — — 72.47
115.00 22.13 7.76 — — — — — 78.71
125.00 25.13 8.44 — — — — — 85.03
* Assumes free school meals allowed on low income grounds—sec assumption 6 above.
(B) UNEMPLOYED: WEEKS 3 TO 28 - EARNINGS-RELATED SUPPLEMENT IN PAYMENT
Former earnings UB FIS Rent rebate Rate rebate Free school meals Free welfare milk Net weekly spending power
£ £ £ £ £ £ £ £
35.00 35.90 18.50 7.03 2.69 2.25 1.19 64.71
45.00 35.90 14.50 8.03 3.01 2.25 1.19 62.03
55.00 37.46 9.50 8.80 3.29 2.25 1.19 59.64
65.00 43.38 4.50 8.66 3.21 2.25 1.19 60.34
75.00 44.58 — 8.80 3.48 2.25* 1.19 57.45*
85.00 45.79 — 8.80 3.38 2.25* — 57.37*
95.00 46.99 — 8.80 3.28 2.25* — 58.47*
105.00 48.19 — 8.58 3.19 2.25* — 59.36*
115.00 49.39 — 8.28 3.09 2.25* — 60.16*
125.00 50.59 — 7.98 2.99 2.25* — 60.96*
* Assumes free school meals allowed on low income grounds—see assumption 6 above.
(C) UNEMPLOYED: WEEKS 3 TO 28 - EARNINGS-RELATED SUPPLEMENT ABOLISHED
Former earnings UB FIS Rent rebate Rate rebate Free school meals Free welfare milk Net weekly spending powder
£ £ £ £ £ £ £ £
35.00 35.90 18.50 7.03 2.69 2.25 1.19 64.71
45.00 35.90 14.50 8.03 3.01 2.25 1.19 62.03
55.00 35.90 9.50 8.80 3.41 2.25 1.19 58.20
65.00 35.90 4.50 8.80 3.55 2.25 1.19 53.34†
75–125 35.90 — 8.80 3.55 2.25* 1.19 48.84*†
* Assumes free school meals allowed on low-income grounds—see assumption 6 above.
† Could be eligible for supplementary benefit as in Table 4(D).
(D) UNEMPLOYED: IN RECEIPT OF SUPPLEMENTARY BENEFIT INSTEAD OF RENT AND RATES REBATES
Net weekly spending power—£54.04
Table 5 — Married couple with three children aged 3, 8 and 12
(A) EMPLOYED: TRAVEL TO WORK EXPENSES £3.55 RENT £8.80, RATES £3.55, CHILD BENEFIT £14.25
Normal earnings Tax NI FIS Rent rebate Rate rebate Free school meals Free welfare milk Net weekly spending power
£ £ £ £ £ £ £ £ £
35.00 — 2.36 20.00 8.80 3.55 4.50 1.19 69.03
45.00 1.13 3.04 18.00 8.49 3.16 4.50 1.19 74.52
55.00 4.13 3.71 13.00 7.24 2.76 4.50 1.19 74.20
65.00 7.13 4.39 8.00 5.99 2.36 4.50 1.19 73.87
75.00 10.13 5.06 3.00 4.91 2.00 4.50 1.19 73.76
85.00 13.13 5.74 — 3.72 1.58 4.50* — 74.28*
95.00 16.13 6.41 — 2.02 0.98 4.50* — 78.31*
105.00 19.13 7.09 — 0.32 0.38 — — 77.83
115.00 22.13 7.76 — — — — — 83.46
125.00 25.13 8.44 — — — — — 89.78
* Assumes free school meals allowed on low-income grounds—see assumption 6 above.
(B) UNEMPLOYED: WEEKS 3 TO 28 - EARNINGS-RELATED SUPPLEMENT IN PAYMENT
Former earnings UB FIS Rent rebate Rate rebate Free school meals Free welfare milk Net weekly spending power
£ £ £ £ £ £ £ £
35.00 37.15 20.00 7.56 2.86 4.50 1.19 75.16
45.00 37.15 18.00 8.06 3.02 4.50 1.19 73.82
55.00 37.46 13.00 8.80 3.39 4.50 1.19 70.24
65.00 44.27 8.00 8.78 3.25 4.50 1.19 71.89
75.00 45.83 3.00 8.80 3.52 4.50 1.19 68.74
85.00 47.04 — 8.80 3.55 4.50* 1.19 66.98*†
95.00 48.24 — 8.80 3.55 4.50* 1.19 68.18*
105.00 49.44 — 8.80 3.47 4.50* 1.19 69.30*
115.00 50.64 — 8.80 3.38 4.50* 1.19 70.41*
125.00 51.84 — 8.80 3.28 4.50* — 70.32*
* Assumes free school meals allowed on low-income grounds—see assumption 6 above.
† Could be eligible for supplementary benefit as in Table 5(D).
(C) UNEMPLOYED: WEEKS 3 TO 28 - EARNINGS-RELATED SUPPLEMENT ABOLISHED
Former earnings UB FIS Rent rebate Rate rebate Free school meals Free welfare milk Net weekly spending power
£ £ £ £ £ £ £ £
35.00 37.15 20.00 7.56 2.86 4.50 1.19 75.16
45.00 37.15 18.00 8.06 3.02 4.50 1.19 73.82
55.00 37.15 13.00 8.80 3.42 4.50 1.19 69.96
65.00 37.15 8.00 8.80 3.55 4.50 1.19 65.09†
75.00 37.15 3.00 8.80 3.55 4.50 1.19 60.99†
85–125 37.15 — 8.80 3.55 4.50* 1.19 57.09*†
* Assumes free school meals allowed on low-income grounds—see assumption 6 above.
† Could be eligible for supplementary benefit as in Table 5(D).
(D) UNEMPLOYED: IN RECEIPT OF SUPPLEMENTARY BENEFIT INSTEAD OF RENT AND RATES REBATES
Net weekly spending power—£67.19
Table 6 — Married couple with four children aged 3, 8, 11 and 1
(A) EMPLOYED: TRAVEL TO WORK EXPENSES £3.55, RENT £10.10. RATES £4.05 CHILD BENEFIT £19.00
Normal earnings Tax NI FIS Rent rebate Rate rebate Free school meals Free welfare milk Net weekly spending power
£ £ £ £ £ £ £ £ £
35.00 — 2.36 21.50 10.10 4.05 6.75 1.19 77.53
45.00 1.13 3.04 21.50 9.61 3.57 6.75 1.19 84.75
55.00 4.13 3.71 16.50 8.36 3.17 6.75 1.19 84.43
65.00 7.13 4.39 11.50 7.11 2.77 6.75 1.19 84.10
75.00 10.13 5.06 6.50 5.92 2.38 6.75 1.19 83.85
85.00 13.13 5.74 1.50 5.07 2.08 6.75 1.19 84.02
95.00 16.13 6.41 — 3.63 1.57 6.75* 1.19 86.90*
105.00 19.13 7.09 — 1.93 0.97 6.75* — 89.73*
115.00 22.13 7.76 — 0.23 0.37 4.50* — 91.51*
125.00 25.13 8.44 — — — — — 92.73
* Assumes free school meals allowed on low income grounds—see assumption 6 above.
† Could be eligible for supplementary benefit as in Table 6(D).
(B) UNEMPLOYED: WEEKS 3 TO 28 - EARNINGS-RELATED SUPPLEMENT IN PAYMENT
Former earnings UB FIS Rent rebate Rate rebate Free school meals Free welfare milk Net weekly spending power
£ £ £ £ £ £ £ £
35.00 38.40 21.50 8.86 3.33 6.75 1.19 84.88
45.00 38.40 21.50 8.86 3.33 6.75 1.19 84.88
55.00 38.40 16.50 10.10 3.73 6.75 1.19 81.52†
65.00 44.27 11.50 9.89 3.66 6.75 1.19 82.11†
75.00 47.08 6.50 10.10 3.83 6.75 1.19 80.30†
85.00 48.29 1.50 10.10 4.05 6.75 1.19 76.73†
95.00 49.49 — 10.10 4.05 6.75* 1.19 76.43*†
105.00 50.69 — 10.10 4.05 6.75* 1.19 77.63*†
115.00 51.89 — 10.10 3.97 6.75* 1.19 78.75*†
125.00 53.09 — 10.10 3.87 6.75* 1.19 79.85*†
* Assumes free school meals allowed on low-income grounds—see assumption 6 above.
† Could be eligible for supplementary benefit as in Table 6(D)
(C) UNEMPLOYED: WEEKS 3 TO 28 - EARNINGS-RELATED SUPPLEMENT ABOLISHED
Former earnings UB FIS Rent rebate Rate rebate Free school meals Free welfare milk Net weekly spending power
£ £ £ £ £ £ £ £
35.00 38.40 21.00 8.86 3.33 6.75 1.19 84.88
45.00 38.40 21.00 8.86 3.33 6.75 1.19 84.88
55.00 38.40 16.50 10.10 3.73 6.75 1.19 81.52†
65.00 38.40 11.50 10.10 4.05 6.75 1.19 76.84†
75.00 38.40 6.50 10.10 4.05 6.75 1.19 71.84†
85.00 38.40 1.50 10.10 4.05 6.75 1.19 66.84†
95–125 38.40 — 10.10 4.05 6.75* 1.19 65.34*†
* Assumes free school meals allowed on low-income grounds—see assumption 6 above.
† Could be eligible for supplementary benefit as in Table 6(D).
(D) UNEMPLOYED: IN RECEIPT OF SUPPLEMENTARY BENEFIT INSTEAD OF RENT AND RATE REBATES
Net weekly spending power—£82.54.
In compiling Tables 1 to 6 above, income tax refunds have not been included as part of net weekly spending power of the unemployed. The amount of any tax refund payable is determined by the relationship between the amount of tax paid prior to unemployment, and the number of weeks of unemployment remaining. in the tax year. However, at the 30 per cent tax rate, the maximum weekly amount of such refunds, where payable, is as follows:
Family type Weekly tax refund
Single person without child(ren) £7.93
Single person with child(ren), married couple with or without children £12.38
Figures are not readily available to show the maximum number of weeks for which tax refunds would be payable and could be obtained at disproportionate cost.