HC Deb 12 February 1981 vol 998 cc405-7W
Mr. Ralph Howell

asked the Secretary of State for Social Services if he will publish figures based on the same assumptions as in his reply to the hon. Member for Norfolk, North, Official Report, 27 October 1980, column 193, tabulating net weekly spending power for each of a

Date Two thirds of average earnings Net weekly spending power at the date in column (1) Net weekly spending power at November 1980 prices Average earnings Net weekly spending power at the date in column (1) Net weekly spending power at November 1980 prices 150 per cent. Of Average earnings Net weekly spending power at the date in column (1) Net weekly spending power at November 1980 prices
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)
Table1: Single Person
£ £ £ £ £ £ £ £ £
November 1978 63.70 36.59 49.52 95.50 55.83 75.56 143.30 86.27 116.76
November 1979 76.00 45.55 52.54 114.00 69.68 80.37 171.00 108.21 124.81
November 1980 92.00 51.97 51.97 138.00 81.06 81.06 207.00 127.54 127.54
Table 2: Married Couple
November 1978 63.70 40.08 54.25 95.50 59.32 80.29 143.30 89.76 121.49
November 1979 76.00 49.30 56.86 114.00 73.43 84.70 171.00 111.96 129.14
November 1980 92.00 56.42 56.42 138.00 85.50 85.50 207.00 131.98 131.98
Table 3: Married Couple with Two Children Aged 4 and 6
November 1978 63.70 48.44 65.56 95.50 65.19 88.23 143.30 95.63 129.43
November 1979 76.00 57.13 65.90 114.00 79.83 92.08 171.00 118.36 136.52
November 1980 92.00 66.75 66.75 138.00 93.25 93.25 207.00 139.73 139.73

single person, a married couple and married couples with two and four children in November 1978, 1979 and 1980 at current prices and at November 1980 prices, assuming in each case earnings equal to 66 per cent., 100 per cent. and 150 per cent. of average for adult workers.

Mrs. Chalker

The information requested is given in the following tables. Net weekly spending power is a family's gross income—including earnings and any child benefit, family income supplement, rent and rates rebates, the value of free school meals and free welfare milk, as appropriate—less tax, national insurance contributions, travel-to-work expenses and rent and rates.

The earnings estimates used in the tables relate to the average earnings of men aged 21 and over. The figures for November 1978 and November 1979 are not close estimates; their derivation is explained in the first of the notes below the tables. The figures for November 1980 are based on an assumption: an estimate of average earnings has not yet been made for that month. Separate estimates are not available for different family types. The assumptions made about the ages of the children are shown at the head of the tables. Other assumptions are as follows:

  1. 1. Travel-to-work expenses were £2.10 a week in November 1978, £2.45 in November 1979 and £3.55 in November 1980;
  2. 2. for single persons and married couples, rent was £5.30 and rates £1.95 a week in November 1978, £5.40 and £2.30 in November 1979 and £7.70 and £2.90 in November 1980;
    • for married couples with two children, rent was £6.30 and rates £2.35 a week in November 1978, £6.50 and £2.80 in November 1979, and £8.80 and £3.55 in November 1980:
    • for married couples with four children, rent was £7.20 and rates £2.70 a week in November 1978, £7.50 and £3.20 in November 1979, and £10.10 and £4.05 in November 1980;
  3. 3. for married couples, the wife had no personal income from earnings or social security benefits—apart from child benefit, where appropriate;
  4. 4. means-tested benefits were taken up in full;
  5. 5. there were no tax allowances apart from personal allowances; and
  6. 6. that the charge made for a school meal in November 1980 was 45 pence and that local authorities continued to award free school meals on grounds of low income, applying the November 1979 conditions of entitlement—see note 2.

The 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.

Date Two thirds of average earnings Net weekly spending power at the date in column (1) Net weekly spending power at November 1980 prices Average earnings Net weekly spending power at the date in column (1) Net weekly spending power at November 1980 prices 150 per cent. Of Average earnings Net weekly spending power at the date in column (1) Net weekly spending power at November 1980 prices
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)
Table 4: Married Couple with Four Children Aged 3, 8, 11 and 16
November 1978 63.70 60.94 82.48 95.50 71.84 97.23 143.30 102.28 138.43
November 1979 76.00 71.82 82.84 114.00 86.43 99.69 171.00 124.96 144.13
November 1980 92.00 85.70 85.70 138.00 100.95 100.95 207.00 147.43 147.43

Notes:

1. The earnings estimates used in the tables relate to the average gross weekly earnings of men aged 21 and over in full-time employment in Great Britain whose pay was not affected by absence.

The figures for November 1978 and November 1979 are not close estimates, having been arrived at as follows. Estimates for the month of April were derived from the new earnings survey (NES) and so were subject to sampling error. Estimates for the month of November were then derived from the NES estimates, assuming that movements in the average earnings of the specified group were similar to those of a centred 3-month moving average of the whole economy average earnings index, seasonally adjusted, as published in Employment Gazette, table 5.1.

The figures for November 1980 have been based on an assumption that average earnings were £138.00 a week. An estimate has not yet been made for that month.

2. The Education Act 1980 brought to an end the nationally prescribed charge and remission arrangements for school meals. 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 or family income supplement.