HC Deb 22 June 1981 vol 7 cc22-3W
Mr. Freud

asked the Secretary of State for Social Services whether he will list in the Official Report the percentage of net income at work which is replaced by supplementary benefit for (a) two-thirds average earnings, (b) average earnings and (c) one and a half times average earnings for the following groups of people: (i) single person, (ii) married couple with two children arid (iii) married couple with four children in April 1981; and what the corresponding figures will be after the abolition of earnings-related supplement.

Mrs. Chalker

The following table gives percentage figures, it being assumed that men's average gross earnings reached £142 a week in April 1981.

Net weekly income has been taken as gross earnings or benefit less, as appropriate, tax, national insurance contribution, travel to work expenses and net rent and rates; plus, as appropriate, child benefit, family income supplement and the value of free school meals and welfare foods.

The ages of the children have been assumed to be four and six in the two child families and three, eight, 11 and 16 in the four child families. The other assumptions made were also the same as in the tax-benefit model tables--April 1981—published by the Department. A copy of these tables has been placed in the Library of the House.

The abolition of earnings-related supplement will have no effect on figures such as those in the table below. As supplementary benefit is designed to bring income up to a given level, a recipient of supplementary benefit will continue to have the same net income after the abolition as before.

APRIL 1981
Family type Net weekly income when receiving

supplementary benefit as a percentage of net

weekly income when in work and earning

Two-thirds average earnings Average earnings One and a half times average earnings
Single person 43 27 17
Married couple with two children 81 60 40
Married couple with four children 99 85 58