HC Deb 15 May 1985 vol 79 cc154-6W
Mr. Ralph Howell

asked the Secretary of State for Social Services (1) what is the net weekly spending power of a man with a wife and one child aged eight years, whose weekly income is (i) £50, (ii) £60 and (iii) £70, whose rent and rates are £15.60 and £7.35, respectively, and who are receiving all state benefits to which they are entitled (a) when he is working and (b) if he were unemployed, and assuming that both husband and wife were earning the £4 disregarded income;

(2) what is the net weekly spending power of a man with a wife and one child aged eight years, whose weekly income is (i) £80, (ii) £90, (iii) £100, (iv) £110 and (v) £120, whose rent and rates are £20 and £7, respectively, and who are receiving all state benefits to which they are entitled (a) when he is working and (b) if he were unemployed, assuming that both husband and wife were earning the £4 disregarded income;

(3) what is the net weekly spending power of a man with a wife and one child aged eight years, whose weekly income is (i) £130, (ii) £140 and (iii) £150, whose rent and rates are £30 and £10, respectively, and who are receiving all state benefits to which they are entitled (a) when he is working and (b) if he were unemployed, assuming that both husband and wife were earning the £4 disregarded income;

(4) what is the net weekly spending power of a man with a wife and three children aged four, eight and 11 years, whose rent and rates are £15.60 and £7.35, respectively, as shown in the tax benefit model tables November 1984, whose income is (i) £50, (ii) £60 and (iii) £70 per week, and who are receiving all state benefits to which they are entitled (a) when he is working and (b) if he were unemployed, assuming that both husband and wife were earning the £4 disregarded income;

(5) what is the net weekly spending power of a man with a wife and three children aged four, eight and 11 years, whose weekly income is (i) £80, (ii) £90, (iii) £100, (iv) £110 and (v) £120, whose rent and rates are £20 and £7, respectively, and who are receiving all state benefits to which they are entitled (a) when he is working and (b) if he were unemployed, assuming that both husband and wife were earning the £4 disregarded income;

(6) what is the net weekly spending power of a man with a wife and three children aged four, eight and 11 years, whose weekly income is (i) £130, (ii) £140 and (iii) £150, whose rent and rates are £30 and £10, respectively, and who are receiving all state benefits to which they are entitled (a) when he is working and (b) if he were unemployed, assuming that both husband and wife were earning the £4 disregarded income;

(7) what is the net weekly spending power of a man with a wife and four children aged four, eight, 11 and 15 years, whose income is (i) £50, (ii) £60 and (iii) £70 per week, whose rent and rates are £15.60 and £7.35, respectively, and who are receiving all state benefits to which they are entitled (a) when he is working and (b) if he were unemployed, assuming that both husband and wife were earning the £4 disregarded income;

(8) what is the net weekly spending power of a man with a wife and four children aged four, eight, 11 and 15 years, whose income is (i) £80, (ii) £90, (iii) £100, (iv) £110 and (v) £120 per week, whose rent and rates are £20 and £7, respectively, and who are receiving all state benefits to which they are entitled (a) when he is working and (b) if he were unemployed, assuming that both husband and wife were earning the £4 disregarded income;

(9) what is the net weekly spending power of a man with a wife and four children aged four, eight, 11 and 15 years, whose income is (i) £130, (ii) £140, (iii) £150 per week, whose rent and rates are £30 and £10, respectively, and who are receiving all state benefits to which they are entitled (a) when he is working and (b) if he were unemployed, assuming that both husband and wife were earning the £4 disregarded income.

Net Weekly Spending Power for the Family Types Described in the Specified Circumstances
Weekly rent and rates (including £1.50 water rates) Gross weekly earnings of family head Couple with 1 child aged 8 years Family Type Couple with 3 children aged 4, 8 and 11 years Couple with 4 children aged 4, 8, 11 and 15 years
£ £ £ £ £
(a) working families 15.60 + 7.35*
50 65.66 92.15 104.03
60 68.11 96.61 110.72
70 67.76 96.26 111.04
20 + 7† 80 65.59 94.09 108.87
90 65.02 93.54 108.32
100 67.32 92.82 107.65
110 69.62 92.02 106.85
120 69.32 94.32 106.05
30 + 10‡ 130 69.02 91.42 103.15
140 68.72 93.72 105.45
150 70.90 94.48 107.75
(b) Unemployed family in receipt of supplementary benefit and part-time eamings▓ — 65.75 95.94 112.89
* It is estimated that among married couples with children living in rented accommodation where the head is in full-time work, just over 2 per cent. earn £70 or less a week. Of these, about a third (about 15,000 families) pay £22.95 or more a week in rent and rates.
† It is estimated that among couples with children living in rented accommodation where the head is in full-time work, less than 2 per cent. (about 35,000) earn between £70 and £120 a week gross and pay rent and rates as high as the figure of £27 assumed in these questions.
‡ The number of married couples with children in these circumstances—ie with the head of the family in full-time work, earning between £120 and £150 gross weekly, and the family living in rented accommodation and paying £40 or more weekly rent and rates—is too small to estimate or quantify.
▓ Latest estimates show that only about 1.5 per cent. of married unemployed supplementary benefit claimants have part-time earnings. The proportion where both the claimant and the spouse works is not known, but must be less than 1.5 per cent.

Mr. Ralph Howell

asked the Secretary of State for Social Services (1) if he will estimate the effect of the recent Budget changes on the net weekly spending power of a man with a wife and two children aged eight and 11 years whose income is £100 per week and whose rent and rates are £20 and £7, resepctively (a) when he is working and (b) if he were unemployed, and assuming that he and his wife were both earning the £4 disregarded income and in each case were receiving all the benefits to which they were entitled;

(2) if he will estimate the effect of the recent Budget changes on the net weekly spending power of a man and a wife with two children aged 11 and 15 years whose income is £120 per week, whose rent and rates are £20 and £7 per week, respectively, and who are receiving all state benefits to which they are entitled (a) when he is working and (b) if he was unemployed, and assuming that both husband and wife were earning the £4 disregarded income.

Mr. Whitney

On the stated assumptions (and otherwise on the basis of the assumptions in the November 1984 DHSS tax-benefit model tables) the effect of the recent budget changes would be to increase net weekly

Mr. Whitney

The information requested is given in the table. Assumptions are as stated in the questions and otherwise as in the November 1984 DHSS tax-benefit model tables, of which a copy is in the Library. The combinations of assumptions stated in the questions are not typical, and apply in only a very small proportion of cases, as explained in the notes to the table. The comparisons between income in and out of work are therefore misleading and have no general application.

spending power from April 1985 by £1.73 where the man was earning £100 or £120 a week. Where the man was unemployed, and in receipt of supplementary benefit, the changes would have no effect on net weekly spending power.