HC Deb 12 May 1981 vol 4 cc252-3W
Mr. Ralph Howell

asked the Secretary of State for Social Services if he will publish a table on the same basis as his reply to the hon. Member for Norfolk, North, Official Report, 27 October 1980, c. 193, showing net weekly spending power for a married couple with two children when earning £50, and if earnings were increased to each of £55, £60, £65, £70 and £75, assuming no immediate adjustment of family income supplement but that housing rebates are adjusted forthwith on the basis of each extra £5 of earnings and a continuing family income supplement entitlement of £12.

Mrs. Chalker

The information requested is given in the following table. This relates only to the particular illustrative situation described by my hon. Friend and has no general application. It should not be quoted out of context and without stating the assumptions on which it has 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 set out in the notes below the table.

Married couple with two children aged 4 and 6. Employed: travel to work expenses £3.55, rent £8.80, rates £3.55, child benefit £9.50. Family income supplement (FIS) £12
Earnings
£50 £55 £60 £65 £70 £75
£ £ £ £ £ £
Tax 2.63 4.13 5.63 7.13 8.63 10.13
National insurance contribution 3.38 3.71 4.05 4.39 4.73 5.06
Family income supplement 12.00 12.00 12.00 12.00 12.00 12.00
Rent rebate 7.53 6.28 5.11 4.26 3.41 2.56
Rate rebate 2.85 2.45 2.07 1.77 1.47 1.17
Free school meals 2.25 2.25 2.25 2.25 2.25 2.25
Free welfare milk 1.19 1.19 1.19 1.19 1.19 1.19
Net weekly spending power 63.41 64.93 66.54 68.55 70.56 72.58

Other assumptions:

1. The wife has no personal income from earnings or social security benefits (apart from child benefit);

2. means-tested benefits are taken up in full. In the case of FIS, payment is assumed to have been awarded at the rate of £12 a week when earnings were £50 and to have continued at the same rate following pay rises;

3. there are no tax allowances, apart from personal allowances: and

4. the charge for a school meal is 45 pence.