HC Deb 20 December 1985 vol 89 cc420-1W
Mr. Ralph Howell

asked the Secretary of State for Social Services what is the combined total of income tax and national insurance contribution a man with a wife and two children would pay per week if his income were £109 per week and his rent and rates were £15.60 and £7.35, respectively; what are the combined totals of child benefit, housing benefit and free school milk to which such a man would be entitled; and what the effect would be if tax and national insurance thresholds were raised to £110 per week and all state benefits were eliminated for persons who earned more than £100 per week.

Mr. Newton

On the basis of the assumptions quoted and other assumptions as listed in the following note, the combined weekly total of income tax and national insurance contribution payable would be £22.58. The combined total value of child benefit, housing benefit and free school meals available in such circumstances would be £26.21 a week.

If income tax and national insurance contribution thresholds were raised and state benefits eliminated as outlined, a man in the particular circumstances quoted would be £3.63 a week worse off. The example, however, has no general application: such thresholds and benefit limitations would produce varying gains or losses for people in different circumstances. Note Other assumptions

  1. (i)£7.35 figure includes £1.50 water rate
  2. (ii)current benefit rates apply
  3. (iii)fares to work are £5.95 a week
  4. (iv)other assumptions are as in the April 1985 tax/benefit model tables.