§ Mr. Ralph Howellasked the Secretary of State for Social Services what would be the relative financial position in and out of work for the following family groupings: (a) single person, (b) married couple, (c) married couple plus one child aged three years, (d) married couple plus two children aged four and six years, (e) married couple plus three children aged three, eight and 12 years and (f) married couple plus four children aged three, eight, 11 and 16 years, on the assumption that earnings or previous earnings are (i) £75, (ii) £85, (iii) £95, (iv) £105, (v) £115, (vi) £125, (vii) £135, (viii) £145, (ix)£155 and (x) £165, using the rates of benefit and new entit[...]ent levels due to take effect on 21 November and showing the approximate weekly value of tax refunds when sick or unemployed, and assuming average levels of rent, rates and work expenses.
§ Mr. Newton[pursuant to his reply, 14 November 1983, c. 323–4]: My hon. Friend will be aware of the
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Table 1 Single Person (A) Employed: Travel-to-Work Expenses £5.50, Rent £12.35, General Rate £4.50, Water Rate £1.40 Housing Benefit Normal earnings £
Percentage of average earnings Tax £
National Insurance £
Rent rebate £
Rate rebate £
Net weekly spending power £
85 49 15.20 7.65 2.27 0.99 41.66 115 67 24.20 10.35 — — 56.70 165 96 39.20 14.85 — — 87.20 expense involved in answering questions of this nature. The information given below, has therefore been confined to three illustrative levels of earnings.
The tables give the net weekly spending power for various family types when the head is (a) in work and earning £85, £115, and £165 a week; (b) unemployed and receiving unemployment benefit and with 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 percentage of average earnings. The average earnings figure used of £171.84 has been estimated on the assumption that earnings increased by 7 per cent. between November 1982 and November 1983;
- 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 arid 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. income tax refunds have riot been included as part of net weekly spending power when unemployed. Unemployment benefit and/or supplementary benefit paid to someone required to be available for work is taxable up to the standard rate of unemployment benefit plus an addition for a wife or adult dependant where appropriate. In practice this does not affect the amount of benefit paid but any refund due, after taking account of benefit received, will only be paid at the end of the period of claim or the end of the tax year whichever is the earlier;
- 7. the charge made for school meals is 50p, and local authorities continue to award free school meals on low income grounds, applying the November 1979 conditions of entitlement.
(ABBREVIATIONS USED THROUGHOUT THESE TABLES ARE):
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- NI = National Insurance
- UB = Unemployment Benefit
- FIS = Family Income Supplement
- *Rent and rate levels represent the average payable for the 1983–84 financial year, based on information collected from local authorities.
(B) Unemployed: Flat-rate Unemployment Benefit Only Unemployment benefit £
Rent rebate £
Rate rebate £
Net weekly spending power £
25.95 11.69 4.07 23.46 NoteThere is an entitlement to supplementary benefit as in Table 1(C).
(C) Unemployed and in Receipt of Supplementary Benefit and Housing Benefit Net weekly spending power—£26.80. Table 2 Married Couple (A) Employed: Travel-to-Work Expenses £5.50, Rent £12.35, General Rate £4.50, Water Rate £1.40 Housing Benefit Normal earnings £
Percentage of average earnings Tax £
National Insurance £
Rent rebate £
Rate rebate £
Net weekly spending power£ 85 49 9.38 7.65 6.56 2.42 53.20 115 67 18.38 10.35 0.26 0.32 63.10 165 96 33.38 14.85 — — 93.02
(B) Unemployed: Flat-rate Unemployment Benefit Only Unemployment benefit £
Rent rebate £
Rate rebate £
Net weekly spending power £
41.95 12.35 4.42 40.47 Note: There is an entitlement to supplementary benefit as in Table 2(C)
(C) Unemployed and in Receipt of Supplementary Benefit and Housing Benefit Net weekly spending power—£43.50. Table 3 Married Couple with One Child aged 3 (A) Employed: Travel to work expenses £5.50, Rent £13.75, General Rate £5.35, Water Rate £1.40, Child Benefit £6.50 Normal Earnings £
Percentage of average Earnings Per cent. Housing Benefit Free Welfare Milk £
Net Weekly Spending Power £
Tax £
NI £
FIS £
Rent Rebate £
Rate Rebate £
85 49 9.38 7.65 0.30 8.51 3.29 1.47 62.04 115 67 18.38 10.35 — 2.23 1.20 — 70.20 165 96 33.38 14.85 — — — — 92.27
(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 £
85 42.10 0.30 13.75 5.33 1.47 48.95 115 and 165 42.10 — 13.75 5.35 1.47 48.67 Note: There is an entitlement to supplementary benefit as in Table 3(C).
(C) Unemployed and in receipt of Supplementary Benefit and Housing Benefit
Net Weekly Spending Power—£56–17.
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Table 4 Married Couple with Two Children aged 4 and 6 (A) Employed: Travel to work expenses £5.50, Rent £14.75, General Rate £5.45, Water Rate £1.40, Child Benefit £13.00 Normal Earnings £
Percentage of average Earnings Per cent. Housing Benefit Free School Meals £
Free Welfare Milk £
Net Weekly Spending Power £
Tax £
NI £
FIS £
Rent Rebate £
Rate Rebate £
85 49 9.38 7.65 5.00 9.29 3.41 2.50 1.47 75.54 115 67 18.38 10.35 — 3.97 1.64 2.50 — 80.28 165 96 33.38 14.85 — — — — — 102.67
(B) Unemployed and in receipt 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 £
85 42.25 5.00 14.75 5.43 2.50 1.47 62.80 115 and 165 42.25 — 14.75 5.45 2.50 1.47 57.82 Note: There is an entitlement to supplementary benefit as in Table 4(C).
(C) Unemployed and in receipt of Supplementary Benefit and Housing Benefit
Net Weekly Spending power—£67.82.
Table 5 Married Couple with 3 Children aged 3, 8 and II (A) Employed: Travel to work expenses £5.50, Rent £14.75, General Rate £5.45, Water Rate £1.40, Child Benefit £19.50 Housing Benefit Normal Earnings £
Percentage of average earnings % Tax £
NI £
FIS £
Rent Rebate £
Rate Rebate £
Free School Meals £
Free Welfare Milk £
Net Weekly Spending Power £
85 49 9.38 7.65 9.80 9.44 3.46 5.00 1.47 89.54 115 67 18.38 10.35 — 5.10 2.02 5.00 — 90.79 165 96 33.38 14.85 — — — — — 109.17
(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 £
85 42.40 9.80 14.75 5.45 5.00 1.47 76.77 115 and 165 42.40 — 14.75 5.45 5.00 1.47 66.97 Note: There is an entitlement to supplementary benefit as in Table 5(C).
(C) Unemployed and in receipt of Supplementary Benefit and Housing Benefit
Net Weekly Spending power—£84.02.
Table 6 Married Couple with Four Children aged 3, 8, 11 and 16 (A) Employed: Travel to work expenses £5.50, Rent £14.75, General Rate £5.45, Water Rate £1.40, Child Benefit £26 Normal Earnings £
Percentage of average earnings Housing Benefit Free School Meals £
Free Welfare Milk £
Net Weekly Spending Power £
Tax £
NI £
FIS £
Rent Rebate £
Rate Rebate £
85 49 9.38 7.65 14.50 9.61 3.51 7.50 1.47 103.46 115 67 18.38 10.35 — 6.24 2.40 7.50 1.47 102.78 165 96 33.38 14.85 — — — 2.50 — 118.17
(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 £
85 42.55 14.50 14.75 5.45 7.50 1.47 90.62 115 and 165 42.55 — 14.75 5.45 7.50 1.47 76.12 Note: There is an entitlement to supplementary benefit as in Table 6(C).
(C) Unemployed and in receipt of Supplementary Benefit and Housing Benefit
Net Weekly Spending power—£103.02.
§ 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 giving a breakdown of the figures relating to single people, showing sex and age group.
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§ Dr. Boyson[pursuant to his reply, 16 November, c. 487]: The information requested is shown in the following table. The sample size does not permit a more detailed analysis.
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"Low income Families—1981" Single persons by age-group and sex (Thousands) Not in receipt of supplementary benefit Age group In receipt of supplementary benefit with income below supplementary benefit level with income at or above supplementary benefit level but less, than 40 per cent. above Total Male Female Male Female Male Female 570 1,810 400 850 510 1,260 Under Pension Age Total 400 600 290 330 280 340 Less than 20 90 90 140 120 100 90 20–29 120 200 80 110 100 70 30–44 80 180 70 45 or more 110 130 70 90 80 100 Over Pension Age Total 170 1,210 120 520 230 920 60–64 n/a 110 n/a 70 n/a 120 65–69 40 210 90 60 160 70–79 90 560 80 260 120 400 80 or more 40 330 [30] 100 [50] 240 Notes:
1. Due to rounding the totals may not equal the sum of the component parts.
2. All figures are subject to statistical error. Those in square brackets are subject to very considerable proportionate statistical error.
§ Mr. Squireasked the Secretary of State for Social Services if he will list, in 1955 and November 1983 values and as index numbers using 1955 as 100, the 1955 and the present values of the married couple's pension, the single person's tax allowance, the married man's tax allowance and the value of the child benefits for two children for a two-parent family (a) in work and (b) not working
Table showing comparative levels of Social Security Benefits and values of Tax Allowances Value in April 1955 money terms Col. (a) expressed at November 1983 prices* Value in November 1983 money terms Col. (c) as Index Col. (b)=100 (a) (b) (c) (d) £ £ £ Married couple retirement pension (per week) 3.25 26.17 54.50 208.3 Single person tax allowances (per annum)† 274.00 2,206.33 1,785.00 80.9 Married couple tax allowances (per annum)† 374 3,011.55 2,795.00 92.8
Family Allowance/Child Benefit plus Child Tax Allowances (where appropriate) for a married Couple plus two children aged under 11 In work (per week)‡ 1.11 8.94 13.00 145.4 Sick (per week)|| 1.15¶ 9.26 13.30 143.6 Standard rate tax payer 1.90● 15.30 13.00 85.0 Notes to tables *. Based on movement in the General Index of Retail Prices. †. Tax allowances available to all earners in 1955 comprised three elements: the personal allowance, national insurance relief and earned income relief and all are included. Earned income relief is that for average earnings. ‡. In respect of average earnings of £10.87. Estimates of average earnings have been obtained by interpolation between October estimates using the seasonally adjusted monthly index of average earnings (older series) published by the Department of Employment. ||. Includes dependency allowance for children. ¶. Rates as at May 1955 when Sickness Benefit was increased. Real value at November 1983 (Col. (b) of table) calculated from May 1955 base. ●. Child tax allowance for the family illustrated would have been £200 per annum in 1955. It has been assumed that the family's income subject to tax is more than £200 below the top of the standard rate tax band.