§ Mr. Ralph Howellasked the Secretary of State for Social Services what wage a man with a wife and two children aged six and eight years would need to earn in order to be left with as much net weekly spending power as he would have when unemployed, assuming that he had a mortgage of (a) £25,000, (b) £20,000, (c) £15,000, (d) £10,000 and (e) £5,000, that his work expenses were
Gross earnings required to produce equivalent to spending power out-of-work and in receipt of supplementary benefit Out-of-work spending power Earnings required to produce same spending power Mortgage level £ £ £ £ £ £ 5,000 10,000 15,000 20,000 25,000 Married couple with two children aged 6 and 8 72.60 53.12 103.30 117.32 131.34 144.57 Assumptions
1. The wife has no income other than child benefit.
2. The mortgage is in its first year, the interest rate is 11.25 per cent., with tax relief available at standard rate and deducted at source.
3. Mortgage capital repayments are ignored.
4. All means-tested benefits are taken up in full.
5. Benefit rates are those to be introduced from 21 November 1983.
6. Local authorities continue to exercise their discretion to allow free or cheap meals on low income grounds.
7. No tax repayments are received out of work.
8. The benefit component of net weekly out-of-work spending power reflects a standard supplementary benefit assessment, plus the value of free school meals.
§ Sir Brandon Rhys Williamsasked the Secretary of State for Social Services, pursuant to the analysis in "Low Income Families 1981", if he will publish figures for 1981–82 showing net spending power in relation to supplementary benefit levels of married men with two children, with earnings equal to 66 per cent., 100 per cent. and 150 per cent. of the 1981–82 average, with mortgages equal to 1.7 times gross incomes including child benefit,
Net spending power on supplementary benefit and at specific earnings and mortgage levels Spending power given the earnings Mortages indicated Supplementary benefit spending power 66 per cent. average earnings Mortgage £9,730 100 per cent. average earnings Mortgage £14,270 150 per cent. average earnings Mortgage £20,940 £ £ £ £ Married couple with two children aged 4 and 6 60.25 58.08 78.00 113.54 Assumptions:
1. The wife has no income other than child benefit.
2. The mortgage is in its first year, the interest rate is 15 per cent. (Nov. 81) with tax relief at the standard rate.
3. Mortgage capital repayments are ignored.
4. All means-tested benefits are taken up in full.
5. No allowance is made for free school meals on low income grounds except on the basis of supplementary benefit or family income supplement.
6. No tax repayments are received on supplementary benefit.
7. The average earnings calculations are based on the November 1981 average earnings of all adult males.
§ Sir Brandon Rhys Williamsasked the Secretary of State for Social Services, pursuant to the analysis in "Low Income Families 1981", if he will now also estimate for 1979 and 1981 the number of families, and the number of persons living in those families, with incomes either below supplementary benefit levels or within 140 per cent. of supplementary benefit levels, who had been unemployed
486W£5 a week, that he has central heating with five rooms heated and that he was in receipt of all benefits, rebates and so on to which he was entitled.
§ Mr. NewtonThe table following shows the earnings required to produce weekly spending power equivalent to spending power out-of-work on the basis of the illustrative assumptions indicated in my hon. Friend's question. The table relates only to those assumptions and has no general application. In particular, mortgages of £20,000 and £25,000 would not be consistent with normal building society policy relating the size of loan to the mortgagee's gross earnings if those earnings were, as shown in the table, £131.34 and £144.57, respectively.
and assuming no entitlement to free school meals except with family income supplement and supplementary benefit.
§ Dr. BoysonThe table below shows the net spending power on the basis of the illustrative assumptions indicated in my hon. Friend's question. The figures relate to November 1981 and take account of benefit increases effective from 23 November 1981.
or sick for less than 13 weeks; and if he will publish a table showing total low income families, according to income level, including the short term sick and unemployed.
§ Dr. BoysonI regret that the information requested is not readily available and could be obtained only at disproportionate cost.
487W
§ Sir Brandon Rhys Williamsasked the Secretary of State for Social Services (1) pursuant to the analysis in "Low Income Families 1981", if he will give a more detailed breakdown of the 1.8 million families with incomes below supplementary benefit levels, showing the main reasons why they have fallen through the social security safety net;
(2) pursuant to the analysis in "Low Income Families 1981", if he will publish figures giving a breakdown of the figures relating to single people, showing sex and age group;
(3) pursuant to the analysis in "Low Income Families 1981", if he will publish figures showing how many of the families at each income level, with supplementary benefit recipients shown separately, were mortgagees.
§ Dr. BoysonThe information is not immediately available. I shall reply to my hon. Friend as soon as possible.