HC Deb 18 January 1982 vol 16 cc65-73W
Mr. Ralph Howell

asked the Secretary of State for Social Services (1) if he will bring up to date the net weekly spending power figures published in reply to the hon. Member for Norfolk, North on 27 October 1980, Official Report, c. 193, after the new benefit rates have come into force later in November and with updated assumptions for rent, rates, and so on.

(2) if he will compare the net weekly spending power of a man with a wife and two children, aged 4 and 6 years, if he earns or has previously earned £100 per week (a) when in work and (b) when in receipt of unemployment benefit with his net weekly spending power when dependent on supplementary benefit using updated assumptions, as in the reply to the hon. Member for Norfolk, North, on 27 October 1980, Official Report, c. 193.

Mrs. Chalker

[pursuant to her replies, 16 November 1981, Vol. 13 c.50 and 7 December 1981, Vol. 14, c.307]: The following tables provide illustrative details, as at November 1981, 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 where earnings-related supplement 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 tables, as appropriate. Other assumptions are as follows:

  1. 1. The wife has no personal income from earnings or social security benefits—apart from child benefit, where appropriate;
  2. 2. there have been no previous spells of unemployment or sickness which would affect the amount of unemployment benefit and earnings-related supplement payable;
  3. 3. 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;
  4. 4. there are no tax allowances apart from personal allowances;
  5. 5. that the charge made for a school meal is 45 pence and that local authorities continue to award free meals on grounds of low income, applying the November 1979 conditions of entitlement.

Earnings-related supplement has been calculated by deflating the recent earnings to a point in the relevant tax year—1979–80 for earnings-related supplement payable from 1 January 1981—by the change in the index of average earnings over that period. It should be noted that earnings-related supplement will not be payable where the period of interruption of employment began on or after 3 January 1982, or in any event after 30 June 1982.

Income tax refunds have not been included as part of net weekly spending power when 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 children 7.93
Single person with children 12.38
Married couple with or without children

Abreviations used throughout the Tables

  • NI = National insurance contributions.
  • UB = Unemployment benefit.
  • FIS = Family income supplement.
  • FSM = Free school meals.
  • FWM = Free welfare milk.

Table 1—Single Person
(A) Employed: Travel to work expenses £4.40, Rent £10.09, Rates £3.65
Normal earnings Tax NI Rent rebate Rate rebate Net weekly speeding power—November 1981
£ £ £ £ £ £
35.00 2.57 2.71 10.00 3.60 25.27
45.00 5.57 3.49 7.90 2.80 28.59
55.00 8.57 4.26 5.59 2.05 31.76
65.00 11.57 5.04 3.89 1.45 35.68
75.00 14.57 5.81 2.19 0.85 39.61
85.00 17.57 6.59 0.49 0.25 43.53
95.00 20.57 7.36 49.02
100.00 22.07 7.75 52.13
105.00 23.57 8.14 55.24
115.00 26.57 8.91 61.47
125.00 29.57 9.69 67.69
135.00 32.57 10.46 73.92
145.00 35.57 11.24 80.14

(B) Unemployed: Weeks 3 to 28Earnings-related supplement in payment
Former earnings UB Rent rebate Rate rebate Net weekly spending power— November 1981
£ £ £ £ £
35.00 23.64 9.43 3.29 *22.71
45.00 26.58 8.69 3.05 24.67
55.00 27.37 8.49 2.99 25.20
65.00 28.16 8.30 2.92 25.73
75.00 28.96 8.10 2.86 26.27
85.00 29.75 7.90 2.80 26.80
95.00 30.55 7.70 2.73 27.33
100.00 30.95 7.60 2.70 27.60
105.00 31.34 7.50 2.67 27.86
115.00 32.14 7.30 2.61 28.40

Former earnings UB Rent rebate Rent rebate Net weekly spending power— November 1981
£ £ £ £ £
125.00 32.93 7.10 2.54 28.92
135.00 33.73 6.91 2.48 29.47
145.00 34.52 6.71 2.42 30.00

Note:

* Could be eligible for supplementary benefit.

Table 2—Married Couple
(A) Employed: Travel to work expenses £4.40, Rent £10.00, Rates £3.65
Normal earnings Tax NI Rent rebate Rent rebate Net weekly spending power— November 1981
£ £ £ £ £ £
35.00 2.71 10.00 3.65 27.89
45.00 1.13 3.49 10.00 3.65 35.98
55.00 4.13 4.26 9.96 3.46 41.98
65.00 7.13 5.04 7.46 2.66 44.90
75.00 10.13 5.81 5.29 1.94 48.24
85.00 13.13 6.59 3.59 1.34 52.16
95.00 16.13 7.36 1.89 0.74 56.09
100.00 17.63 7.75 1.04 0.44 58.05
105.00 19.13 8.14 0.14 59.82
115.00 22.13 8.91 65.91

Table 3—Married Couple With One Child Aged 3
(a) Employed: Travel to Work Expenses £4.40, Rent £11.30, Rates £4.35, Child Benefit £5.25
Normal Earnings £ Tax NI FIS Rent Rebate Rent Rebate FWM Net weekly spending power— November 1981
£ £ £ £ £ £ £ £
35.00 2.71 18.50 11.30 4.35 1.30 52.94
45.00 1.13 3.49 14.50 10.89 3.93 1.30 56.20
55.00 4.13 4.26 9.50 9.64 3.53 1.30 55.78
65.00 7.13 5.04 4.50 8.39 3.13 1.30 55.35
75.00 10.13 5.81 7.02 2.69 1.30 55.27
85.00 13.13 6.59 5.24 2.07 57.79
95.00 16.13 7.36 3.54 1.47 61.72
100.00 17.63 7.75 2.69 1.17 63.68
105.00 19.13 8.14 1.84 0.87 65.64
115.00 22.13 8.91 0.27 69.43
125.00 25.13 9.69 75.38
135.00 28.13 10.46 81.61
145.00 31.13 11.24 87.83

(b) Unemployed: Weeks 3 to 28—Earnings.Related Supplement in Payment
Former Earnings UB FIS Rent Rebate Rate Rebate FWM Net weekly spending power— November 1981
£ £ £ £ £ £ £
35.00 37.20 18.50 8.03 3.01 1.30 57.64
45.00 37.20 14.50 9.03 3.33 1.30 54.96
55.00 37.20 9.50 10.28 3.73 1.30 51.61
65.00 42.86 4.50 10.11 3.68 1.30 52.05
75.00 43.66 11.04 3.97 1.30 49.57
85.00 44.45 10.84 3.91 1.30 50.10
95.00 45.25 10.64 3.85 1.30 50.64
100.00 45.65 10.54 3.81 1.30 50.90
105.00 46.04 10.44 3.78 1.30 51.16

Normal earnings Tax NI Rent rebate Rate rebate Net weekly spending power— November 1981
£ £ £ £ £ £
125.00 25.13 9.69 72.13
135.00 28.13 10.46 78.36
145.00 31.13 11.24 84.58

(B) Unemployed: Weeks 3 to 28— Earnings.related supplement in payment
Former earnings UB Rent rebate Rate rebate Net weekly spending power— November 1981
£ £ £ £ £
35.00 36.40 10.00 3.65 *36.40
45.00 36.40 10.00 3.65 *36.40
55.00 37.15 10.00 3.65 *37.15
65.00 42.06 9.38 3.27 41.06
75.00 42.86 9.19 3.21 41.61
85.00 43.65 8.99 3.15 42.14
95.00 44.45 8.79 3.08 42.67
100.00 44.85 8.69 3.05 42.94
105.00 45.24 8.59 3.02 43.20
115.00 46.04 8.39 2.96 43.74
125.00 46.83 8.19 2.89 44.26
135.00 47.63 7.99 2.83 44.80
145.00 48.42 7.79 2.76 45.32

Note:

* Could be eligible for supplementary benefit.

Former earnings UB FIS Rate rebate FWM Rate rebate Net weekly spending power— November 1981
£ £ £ £ £ £ £
115.00 46.84 10.25 3.72 1.30 51.71
125.00 47.63 10.05 3.66 1.30 52.24
135.00 48.43 9.85 3.59 51.47
145.00 49.22 9.65 3.53 52.00

Table 4— Married Couple With Two Children Aged 4 and 6
(a) Employed: Travel to Work Expenses £4.40, Rent £12.10, Rates £4.45, Child Benefit £10.50
Normal Earnings Tax NI FIS Rent Rebate Rate Rebate FSM FWM Net weekly spending power—November 1981
£ £ £ £ £ £ £ £ £
35.00 2.71 20.00 12.10 4.45 2.25 1.30 61.94
45.00 1.13 3.49 18.50 11.65 4.07 2.25 1.30 67.70
55.00 4.13 4.26 13.50 10.40 3.67 2.25 1.30 67.28
65.00 7.13 5.04 8.50 9.15 3.27 2.25 1.30 66.85
75.00 10.13 5.81 3.50 7.90 2.87 2.25 1.30 66.43
85.00 13.13 6.59 6.59 2.43 *2.25 *66.10
95.00 16.13 7.36 4.89 1.83 *2.25 *70.03
100.00 17.63 7.75 4.04 1.53 *2.25 *71.99
105.00 19.13 8.14 3.19 1.23 71.70
115.00 22.13 8.91 1.49 0.63 75.63
125.00 25.13 9.69 79.73
135.00 28.13 10.46 85.96
145.00 31.13 11.24 92.18

(b) Unemployed: Weeks 3 to 28— Earnings-Related Supplement in Payment
Former Earnings UB FIS Rate Rebate Rate Rebate FSM FWM Net weekly spending power— November 1981
£ £ £ £ £ £ £ £
35.00 38.00 20.00 9.21 3.29 2.25 1.30 68.00
45.00 38.00 18.50 9.58 3.41 2.25 1.30 66.99
55.00 38.00 13.50 10.83 3.81 2.25 1.30 63.64
65.00 43.66 8.50 10.67 3.76 2.25 1.30 64.09
75.00 44.46 3.50 11.72 4.10 2.25 1.30 61.28
85.00 45.25 12.10 4.31 †2.25 1.30 †59.36
95.00 46.05 12.10 4.25 †2.25 1.30 †59.90
100.00 46.45 12.10 4.22 †2.25 1.30 †60.27
105.00 46.84 12.00 4.19 †2.25 1.30 †60.53
115.00 47.64 11.80 4.12 *2.25 1.30 *61.06
125.00 48.43 11.60 4.06 *2.25 1.30 *61.59
135.00 49.23 11.40 4.00 *2.25 1.30 *62.13
145.00 50.02 11.20 3.93 *2.25 1.30 *61.35

Notes:

* Assumes FSM allowed on low-income grounds—see assumption 5.

† Assumes FSM allowed on low-income grounds—see assumption 5. Where local authorities provide FSM only where family income supplement or supplementary benefit is in payment, the family would be better off claiming supplementary benefit—which is a "passport" to FSM.

Table 5—Married couple with three children aged 3, 8 and 12
(a) Employed: Travel to work expenses £4.40, rent £12.10, rates £4.45, child benefit £15.75
Normal earnings Tax NI FIS Rent rebate Rate rebate FSM FWM Net weekly spending power—November 1981
£ £ £ £ £ £ £ £ £
35.00 2.71 21.50 12.10 4.45 4.50 1.30 70.94
45.00 1.13 3.49 21.50 12.10 4.24 4.50 1.30 78.82
55.00 4.13 4.26 17.50 10.67 3.76 4.50 1.30 79.14
65.00 7.13 5.04 12.50 9.42 3.36 4.50 1.30 78.71
75.00 10.13 5.81 7.50 8.17 2.96 4.50 1.30 78.29
85.00 13.13 6.59 2.50 7.03 2.59 4.50 1.30 78.00
95.00 16.13 7.36 5.76 2.14 *4.50 1.30 *80.01

Normal earnings Tax NI FIS Rent rebate Rate rebate FSM FWM Net weekly spending power—November 1981
£ £ £ £ £ £ £ £ £
100.00 17.63 7.75 4.91 1.84 *4.50 *80.67
105.00 19.13 8.14 4.06 1.54 *4.50 *82.63
115.00 22.13 8.91 2.36 0.94 *2.25 84.31
125.00 25.13 9.69 0.66 0.34 85.98
135.00 28.13 10.46 91.21
145.00 31.13 11.24 97.43

(b) Unemployed: Weeks 3 to 28—Earnings-related supplement in payment
Former earnings UB FIS Rate rebate Rate rebate FSW FMW Net weekly spending power—November 1981
£ £ £ £ £ £ £ £
35.00 38.80 21.50 9.91 3.52 4.50 1.30 78.73
45.00 38.80 21.50 9.91 3.52 4.50 1.30 78.73
55.00 3880 17.50 10.91 3.84 4.50 1.30 76.05
65.00 43.90 12.50 10.89 3.83 4.50 1.30 76.12
75.00 45.26 7.50 11.80 4.12 4.50 1.30 73.68
85.00 46.05 2.50 12.10 4.45 4.50 1.30 †70.10
95.00 46.85 12.10 4.45 *4.50 1.30 *†68.40
100.00 47.25 12.10 4.45 *4.50 1.30 *†68.80
105.00 47.64 12.10 4.45 *4.50 1.30 *†69.19
115.00 48.44 12.10 4.45 *4.50 1.30 *†69.99
125.00 49.23 12.10 4.40 *4.50 130 *†70.73
135.00 50.03 12.10 4.34 *4.50 1.30 *†71.47
145.00 50.82 12.10 4.28 *4.50 1.30 *†72.20

Notes:

* Assumes FSM allowed on low income grounds—see assumption 5.

† Could be eligible for supplementary benefit.

Table 6—Married couple with four children aged 3, 8, 11 and 16
(a) Employed: Travel to work expenses £4.40, rent £13.90, rates £5.10, child benefit £21.00
Normal earnings Tax NI FIS Rent rebate Rate rebate FSM FWM Net weekly spending power—November 1981
£ £ £ £ £ £ £ £ £
35.00 2.71 23.00 13.90 5.10 6.75 1.30 79.94
45.00 1.13 3.49 23.00 13.90 4.92 6.75 1.30 87.85
55.00 4.13 4.26 21.50 12.03 4.24 6.75 1.30 90.03
65.00 7.13 5.04 16.50 10.78 3.84 6.75 1.30 89.60
75.00 10.13 5.81 11.50 9.53 3.44 6.75 1.30 89.18
85.00 13.13 6.59 6.50 8.30 3.04 6.75 1.30 88.77
95.00 16.13 7.36 1.50— 7.45 2.74 6.75 1.30 88.85
100.00 17.63 7.75 6.85 2.53 *6.75 1.30 *89.65
105.00 19.13 8.14 6.00 2.23 *6.75 1.30 *91.61
115.00 22.13 8.91 4.30 1.63 *6.75 1.30 *95.54
125.00 25.13 9.69 2.60 1.03 *6.75 *98.16
135.00 28.13 10.46 0.90 0.43 *2.25 *97.59
145.00 31.13 11.24 100.23

(b) Unemployed: Weeks 3 to 28—Earnings related supplement in payment
Former earnings UB FIS Rent rebate Rate rebate FSM FWM Net weekly spending power—November 1981
£ £ £ £ £ £ £ £
35.00 39.60 23.00 11.69 4.13 6.75 1.30 †88.47
45.00 39.60 23.00 11.69 4.13 6.75 1.30 †88.47
55.00 39.60 21.50 12.07 4.25 6.75 1.30 †87.47
65.00 43.90 16.50 12.24 4.31 6.75 1.30 †87.00

Former earnings UB FIS Rate rebate Rate rebate FSW FMW Net weekly spending power—November 1981
£ £ £ £ £ £ £ £
75.00 46.01 11.50 12.95 4.54 6.75 1.30 †85.10
85.00 46.85 6.50 13.90 4.87 6.75 1.30 †82.17
95.00 47.65 1.50 13.90 5.10 6.75 1.30 †18.20
100.00 48.05 13.90 5.10 *6.75 1.30 *†77.10
105.00 48.44 13.90 5.10 *6.75 1.30 *†77.49
115.00 49.24 13.90 5.10 *6.75 1.30 *†78.29
125.00 50.03 13.90 5.10 *6.75 1.30 *†79.08
135.00 50.83 13.90 5.10 *6.75 1.30 *†79.85
145.00 51.62 13.90 5.01 *6.55 1.30 *†80.58

Notes:

* Assumes FSM allowed on low income grounds—see assumption 5.

† Could be eligible for supplementary benefit.

Mr. Winnick

asked the Secretary of State for Social Services, pursuant to the answer given to the hon. Member for Walsall, North on 9 November, if he will now break down the £250 million to be spent in the next year to help low income households meet their fuel bills into the amount attributable to (a) extra family income supplement, (b) extending supplementary benefit heating additions to all under fives, (c) extending supplementary benefit heating additions to all over 80s, (d) extending supplementary benefit heating additions from 70 to 79 year olds, (e) increasing supplementary benefit heating additions above the rate of inflation and (f) any other new measures introduced by the present Government.

Mr. Rossi

[pursuant to his reply, 11 December 1981, Vol. 14, c. 515]: The bulk of the £250 million being spent in the next year on help with fuel costs is accounted for by the ordinary heating additions and central heating additions paid with supplementary benefit. The amounts attributable to the categories specified by the hon. Member are as follows:

  1. (a) for family income supplement, about £15 million has been added to the gross cost of the benefit;
  2. (b) where the claimant is a supplementary benefit householder with a child under 5, about £16 million;
  3. (c) and (d) where the claimant is a supplementary benefit householder and he or a dependant is aged over 70, about £21 million—figures for 70 to 79-year-olds and over-80s are obtainable only at disproportionate cost;
  4. (e) the additional cost of increasing supplementary benefit heating additions by fuel prices rather than by the retail price index as a whole, about £18 million;
  5. (f) the cost of other new measures introduced by this Government:
    1. (i) paying the higher rate of the heating addition automatically to the severely disabled, about £8 million;
    2. (ii) extending the 90 per cent. grant for roof insulation to the elderly and severly disabled on low incomes, in the region of £6 million to £7 million depending on demand;
    3. (iii) awarding supplementary benefit single payments for hot water cylinder jackets, no figures available.

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