§ Mr. Ralph Howellasked the Secretary of State for Social Services if he will update the reply to the hon. Member for Norfolk, North on 27 October 1980, Official Report, c. 193–210, concerning net weekly spending 213W power of families in the following situations: (a) when earnings-related supplement is in payment, (b) if earnings-related payment had been abolished, and (c) when supplementary benefit is in payment for wages of £50, £75, £100, £150 and £200, respectively, per week.
§ Mr. NewtonInformation is given in the following tables for four levels of earnings only, and no information is given on the position with earnings-related supplement in payment. This supplement was abolished in January 1982, and no figures are readily available.
The tables give the net weekly spending power for various family types when the head is (a) in work and earning £75, £100, £150 and £200 a week; (b) unemployed and receiving unemployment benefit and has a residual entitlement to family income supplement; and (c) unemployed and receiving supplementary benefit and housing benefit.
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.
The assumptions made about the ages of the children and the housing* and travel-to-work costs are shown at the head of each table. Other assumptions are as follows:
(1) the earnings levels illustrated in the tables are also shown as percentages of average earnings. The average earnings
Table 1 Single Person (A) Employed: Travel to Work Expenses £5.50, Rent £11.90, General Rate £4.20, Water Rate £1.30 Normal Earnings Percentage of Average Earnings Percent. Tax NI Rent Rebate Rate Rebate Net Weekly Spending Power £ £ £ £ £ £ 75 46 13.47 6.56 4.49 1.58 38.14 100 61 20.97 8.75 0.24 — 47.62 150 91 35.97 13.13 — — 78.00 200 122 50.97 17.50 — — 108.63
(B) Unemployed: Flat Rate Unemployment Benefit Only UB Rent Rebate Rate Rebate Net Weekly Spending Power £ £ £ £ 25.00 11.24 3.83 22.67
Note: Could be eligible for benefits as in Table 1(c) (C) Unemployed and in Receipt of Supplementary Benefit and Housing Benefit. Net weekly spending power—£25.70 Table 2 Married Couple (A) Employed: travel to work expenses £5.50, rent £11.90, general rate £4.20, water rate £1.30 Normal earnings Percentage of average earnings Per cent. Tax NI Rent rabate Rate rebate Net weekly spending power £ £ £ £ £ £ 75 46 8.39 6.56 8.14 2.84 48.13 100 61 15.89 8.75 3.57 1.26 57.29 150 91 30.89 13.13 — — 83.08 200 122 45.89 17.50 — — 113.71
(B) Unemployed and in receipt of flat rate unemployment benefit only UB Rent rebate Rate rebate Net weekly spending power £ £ £ £ 40.45 11.90 4.16 39.11 Note: Could be eligible for benefits as in Table 2(c).
214Wfigure used, of £164.48, has been estimated on the assumption that earnings have increased by 9 per cent. between November 1981 and November 1982;
(2) for married couples, the wife has no personal income from earnings or social security benefits (apart from child benefit, where appropriate);
(3) there have been no previous spells of unemployment or sickness which would affect the amount of unemployment benefit;
(4) means-tested benefits are taken up in full by working and unemployed families. In the case of family income supplement where entitlement existed while at work, payment is assumed to continue for the first six months of unemployment;
(5) there are no tax allowances apart from personal allowances;
(6) that the charge made for a school meal is 50p and that local authorities continue to award free school meals on grounds of low income, applying the November 1979 conditions of entitlement.
ABBREVIATIONS USED THROUGHOUT THESE TABLES ARE:—
NI=National Insurance
UB=Unemployment Benefit
FIS=Family Income Supplement
*Rent and rate levels represent the average amounts paid for appropriately-sized local authority accommodation as at April 1982, based on information collected from local authorities. Provisional figures published in the April 1982 Tax Benefit Model Tables were projected estimates which proved to be too high in the event.
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(C) Unemployed and in receipt of supplementary benefit and housing benefit Net weekly spending power—£41.70. Table 3 Married Couple with One Child aged 3 (A) Employed: Travel to work expenses £5.50, Rent £13.20, General Rate £5.00, Water Rate £1.30, Child Benefit £5.85 Normal Earnings Percentage of Average Earnings per cent Tax NI FIS Rent Rebate Rate Rebate Free Welfare Milk Net Weekly Spending Power £ £ £ £ £ £ £ £ 75 46 8.39 6.56 3.80 9.36 3.46 1.47 58.99 100 61 15.89 8.75 — 5.29 2.07 — 63.57 150 91 30.89 13.13 — — — — 86.83 200 122 45.89 17.50 — — — — 117.46
(B) Unemployed: Flat Rate Unemployment Benefit, plus any continuing entitlement to Family Income Supplement Former Earnings UB FIS Rent Rebate Rate Rebate Free Welfare Milk Net Weekly Spending Power £ £ £ £ £ £ £ 75 40.75 3.80 13.20 4.76 1.47 50.33* 100, 150, 200 40.75 — 13.20 5.00 1.47 46.77*
* Could be eligible for supplement benefit giving net weekly spending power as in Table 3(c). (C) Unemployed and in Receipt of Supplementary Benefit and Housing Benefit Net weekly spending power—£53.82. Table 4 Married couple with two children aged 4 and 6 (A) Employed: Travel to work expenses £5.50, Rent £14.20, General rate £5.10, Water rate £1.30, Child benefit £11.70. Normal earnings Percentage of average earnings per cent. Tax NI FIS Rent rebate Rate rebate Free school meals Free welfare milk Net weekly spending power £ £ £ £ £ £ £ £ £ 75 46 8.39 6.56 8.30 10.22 3.60 2.50 1.47 71.74 100 61 15.89 8.75 — 6.84 2.47 2.50 — *72.77 150 91 30.89 13.13 — — — — — 91.58 200 122 45.89 17.50 — — — — — 122.21 * Assumes free school meals allowed on low-income grounds—see assumption 6 above.
(B) Unemployed and in receipt of flat rate unemployment benefit plus any continuing entitlement to family income supplement Former earnings £ UB FIS Rent rebate Rate rebate Free school meals Free welfare milk Net weekly spending power £ £ £ £ £ £ £ £ 75 41.05 8.30 14.20 4.88 2.50 1.47 *63.50 100, 150, 200 41.05 — 14.20 5.10 2.50 1.47 †*55.42 * Could be eligible for supplementary benefit giving net weekly spending power as in Table 4(c).
† Assumes free school meals allowed on low-income grounds—see assumption 6 above.
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(C) Unemployed and in receipt of supplementary benefit and housing benefit Net weekly spending power—£65.07. Table 5 Married couple with three children aged 3, 8 and 11 (A) Employed: Travel to work expenses £5.50, rent £14.20, general rate £5.10, water rate £1.30, child benefit £17.55. Normal earnings Percentage of average earnings per cent. Tax NI FIS Rent rebate Rate rebate Free school means Free welfare milk Net weekly spending power £ £ £ £ £ £ £ £ 75 46 8.39 6.56 12.80 10.48 3.69 5.00 1.47 84.94 100 61 15.89 8.75 0.30 7.73 2.78 5.00 1.47 84.09 150 91 30.89 13.13 — — — — — 97.43 200 122 45.89 17.50 — — — — — 128.06
(B) Unemployed and in receipt of flat rate unemployment benefit plus any continuing entitlement to family income supplement Former earnings UB FIS Rent rebate Rate rebate Free school meals Free welfare milk Net weekly spending power £ £ £ £ £ £ £ £ 75 41.35 12.80 14.20 4.94 5.00 1.47 *76.71 100 41.35 0.30 14.20 5.10 5.00 1.47 *64.37 150, 200 41.35 — 14.20 5.10 5.00 1.47 *†64.07 * Could be eligible for supplementary benefit giving net weekly spending power as in Table 5(C).
† Assumes free school meals allowed on low-income grounds—see assumption 6 above.
(C) Unemployed and in receipt of supplementary benefit and housing benefit. Net weekly spending power—£80.72. Table 6 Married couple with four children aged 3, 8, 11 and 16. (A) Employed: Travel to work expenses £5.50, Rent £14.20, General rate £5.10, Water rate £1.30. Child benefit £23.40 Normal earnings Percentage of average earnings per cent. Tax NI FIS Rent rebate Rate rebate Free school meals Free welfare milk Net weekly spending power £ £ £ £ £ £ £ £ £ 75 46 8.39 6.56 17.30 10.75 3.77 7.50 1.47 98.14 100 61 15.89 8.75 4.80 7.91 2.84 7.50 1.47 97.18 150 91 30.89 13.13 — 0.22 0.13 2.50 — *106.13 200 122 45.89 17.50 — — — — 133.91 * Assumes free school meals allowed on low-income grounds—see assumption 6 above.
(B) Unemployed and in receipt of flat rate unemployment benefit plus any continuing entitlement to family income supplement Former Earnings UB FIS Rent rebate Rate rebate Free school meals Free welfare milk Net weekly spending power £ £ £ £ £ £ £ £ 75 41.65 17.30 14.20 5.00 7.50 1.47 *89.92 100 41.65 4.80 14.20 5.10 7.50 1.47 *77.52 150, 200 41.65 — 14.20 5.10 7.50 1.47 *†72.72 * Could be eligible for supplementary benefit giving net weekly spending power as in Table 6(c).
† Assumes free school meals allowed on low-income grounds—see assumption 6 above.
(C) Unemployed and in receipt of supplementary benefit and housing benefit. Net weekly spending power—£99.02. Table 7 single person with two children aged 4 and 6 (A) Employed: Work expenses £15.00*, Rent £14.20, General rate £5.10, Water rate £1.30, Child benefit £15.35 Normal earnings Percentage of average earnings per cent. Tax NI FIS Rent rebate Rate rebate Free school meals Free welfare milk Net weekly spending power £ £ £ £ £ £ £ £ £ 75 46 8.39 6.56 8.30 9.31 3.31 2.50 1.47 64.69 100 61 15.89 8.75 — 6.22 2.25 2.50 — †66.08 150 91 30.89 13.13 — — — — — 85.73 200 122 45.89 17.50 — — — — — 116.36 *These expenses have been used as requested instead of normal travel to work expenses of £5.50. The figures in the table therefore relate only to these hypothetical circumstances.
†Assumes free school meals allowed on low-income grounds—see assumption 6 above.
(B) Unemployed: Flat rate unemployment benefit, plus any continuing entitlement to family income supplement Former earnings UB FIS Rent rebate Rate rebate Free school meals Free welfare milk Net weekly spending power £ £ £ £ £ £ £ £ 75 25.30 8.30 14.20 5.10 2.50 1.47 *51.62 100, 150, 200 25.30 — 14.20 5.10 2.50 1.47 *†43.32 *Could be eligible for supplementary benefit giving net weekly spending power as in Table 7(c)(i).
†Assumes free school meals allowed on low-income grounds—see assumption 6 above.
(c) Unemployed: and in receipt of supplementary benefit and Housing benefit
(i) No earnings, net weekly spending power—£49.07.
(ii) With part-time net earnings of £6.00 a week, net weekly spending power—£54.07.