HC Deb 13 February 1986 vol 91 cc532-7W
Sir Brandon Rhys Williams

asked the Secretary of State for Social Services (1) if he will publish tables, similar to those in his Department's tax/benefit model table, showing net weekly spending power for each of a single wage married couple with two children aged four and six years and three children aged three, eight and 11 years, earning £60, £70, £80, £90, £100, £110, £120, £130, £140, £150, £160 and £170 (a) under the existing tax and benefit systems and (b) under the benefit system proposed in Cmnd. 9691, using the illustrative benefit figures in the technical annex;

(2) if he will publish figures, similar to those in his Department's tax/benefit model tables, comparing net weekly spending power for a lone mother with two children aged four and six years, under the existing tax and benefit systems and under the benefit system proposed in Cmnd. 9691, using the illustrative figures in the technical annex, and in each of the following circumstances: (a) not working, after one year on benefits, (b) earning £20 a week from part-time work, (c) earning £40 a week from part-time working and (d) working full-time and earning £60, £70, £80, £90, £100, £110 and £120 per week.

Mr. Newton

[pursuant to his reply, 28 January 1986, c. 508]: The information is in the tables. The assumptions are as follows:

(A) Existing tax and benefit system Married couple with 2 children aged 4 and 6
Earnings head Tax NI FIS CHB Rent Rent rebate (Water rates £1.65) Rates Rate rebate Fares to work FWM/FSM Net Weekly spending power
60 — 4.20 24.50 14.00 16.50 14.40 7.95 5.22 5.95 1.61 2.06 87.19
70 1.07 4.90 19.50 14.00 16.50 13.15 7.95 4.82 5.95 1.61 2.06 88.77
80 4.07 5.60 14.50 14.00 16.50 11.90 7.95 4.42 5.95 1.61 2.06 88.42
90 7.07 8.10 9.50 14.00 16.50 10.65 7.95 4.02 5.95 1.61 2.06 86.27
100 10.07 9.00 4.50 14.00 16.50 9.32 7.95 3.52 5.95 1.61 2.06 85.54
110 13.07 9.90 — 14.00 16.50 7.73 7.95 2.81 5.95 — 2.06 83.23
120 16.07 10.80 — 14.00 16.50 4.83 7.95 1.51 5.95 — 2.06 85.13
130 19.07 11.70 — 14.00 16.50 1.93 7.95 — 5.95 — 2.06 86.82
140 22.07 12.60 — 14.00 16.50 — 7.95 — 5.95 — — 88.93
150 25.07 13.50 — 14.00 16.50 — 7.95 — 5.95 — — 95.03
160 28.07 14.40 — 14.00 16.50 — 7.95 — 5.95 — — 101.13
170 31.07 — — 14.00 16.50 — 7.95 — 5.95 — — 107.23

Married couple with 3 children aged 3, 8 and 11
Earnings head Tax NI FIS CHB Rent Rent rebate (Water rates £1.65) Rates Rate rebate Fares to work FWM/FSM Net Weekly spending power
60 — 4.20 30.50 21.00 16.50 14.78 7.95 5.34 5.95 1.61 4.12 102.75
70 1.07 4.90 25.80 21.00 16.50 13.45 7.95 4.92 5.95 1.61 4.12 104.53
80 4.07 5.60 20.80 21.00 16.50 12.20 7.95 4.52 5.95 1.61 4.12 104.18
90 7.07 8.10 15.80 21.00 16.50 10.95 7.95 4.12 5.95 1.61 4.12 102.03
100 10.07 9.00 10.80 21.00 16.50 9.67 7.95 3.68 5.95 1.61 4.12 101.41
110 13.07 9.90 5.80 21.00 16.50 8.22 7.95 3.03 5.95 1.61 4.12 100.41
120 16.07 10.80 0.80 21.00 16.50 6.77 7.95 2.38 5.95 1.61 4.12 99.41
130 19.07 11.70 — 21.00 16.50 4.10 7.95 1.18 5.95 — 4.12 99.23
140 22.07 12.60 — 21.00 16.50 1.20 7.95 — 5.95 — 4.12 101.25
150 25.07 13.50 — 21.00 16.50 — 7.95 — 5.95 — 2.06 104.09
160 28.07 14.40 — 21.00 16.50 — 7.95 — 5.95 — — 108.13
170 31.07 15.30 — 21.00 16.50 — 7.95 — 5.95 — — 114.23

(B) Benefit system proposed in Cmnd. 9691 using the illustrative benefit figures in the technical annex
Married couple with 2 children aged 4 and 6
Earnings gross Tax NI FC CHB Rent Rent rebate Rates Rates rebate Fares to work Net Weekly spending power
60 — 4.20 35.00 14.00 16.50 3.99 7.95 0.87 5.95 79.26
70 1.07 4.90 29.30 14.00 16.50 2.47 7.95 — 5.95 79.60
80 4.07 5.60 24.90 14.00 16.50 1.33 7.95 — 5.95 80.16
90 7.07 8.10 21.70 14.00 16.50 0.55 7.95 — 5.95 80.68
100 10.07 9.00 17.40 14.00 16.50 — 7.95 — 5.95 81.93
110 13.07 9.90 13.20 14.00 16.50 — 7.95 — 5.95 83.83
120 16.07 10.80 8.90 14.00 16.50 — 7.95 — 5.95 85.63

  1. (a) Current national insurance contribution rates are in force.
  2. (b) The families are tenants and that rent is £16.50 a week, general rate £6.30 a week and water rate £1.65 a week.
  3. (c) Fares to work for full-time workers are £5.95 a week or £3 a week for part-time.
  4. (d) Under the existing system current benefit rates are in force.
  5. (e) Under the system proposed in Cmnd. 9691 the illustrative benefit figures in the technical annex are used and a 20 per cent. rates contribution is made. Present rounding and minima rules have been applied.
  6. (f) All other assumptions are as in the April 1985 tax/ benefit model tables.

It should be noted that heads of two parent families with dependent children do not typically have weekly earnings of £100 or less. Only about 4 per cent. have earnings at these levels.

Earnings gross Tax NI FC CHB Rent Rent rebate Rates Rates rebate Fares to work Net Weekly spending power
130 19.07 11.70 4.60 14.00 16.50 — 7.95 — 5.95 87.43
140 22.07 12.60 0.40 14.00 16.50 — 7.95 — 5.95 89.33
150 25.07 13.50 — 14.00 16.50 — 7.95 — 5.95 95.03
160 28.07 14.40 — 14.00 16.50 — 7.95 — 5.95 101.13
170 31.07 15.30 — 14.00 16.50 — 7.95 — 5.95 107.23

Married couple with 3 children aged 3, 8 and 11
Earnings gross Tax NI FC CHB Rent Rent rebate Rates Rates rebate Fares to work Net Weekly spending power
60 — 4.20 45.30 21.00 16.50 2.67 7.95 — 5.95 94.37
70 1.07 4.90 39.60 21.00 16.50 1.15 7.95 — 5.95 95.35
80 4.07 5.60 35.20 21.00 16.50 — 7.95 — 5.95 96.13
90 7.07 8.10 32.00 21.00 16.50 — 7.95 — 5.95 97.43
100 10.07 9.00 27.70 21.00 16.50 — 7.95 — 5.95 99.23
110 13.07 9.90 23.50 21.00 16.50 — 7.95 — 5.95 101.13
120 16.07 10.80 19.20 21.00 16.50 — 7.95 — 5.95 102.93
130 19.07 11.70 14.90 21.00 16.50 — 7.95 — 5.95 104.73
140 22.07 12.60 10.70 21.00 16.50 — 7.95 — 5.95 106.63
150 25.07 13.50 6.40 21.00 16.50 — 7.95 — 5.95 108.43
160 28.07 14.40 2.10 21.00 16.50 — 7.95 — 5.95 110.23
170 31.07 15.30 — 21.00 16.50 — 7.95 — 5.95 114.23

Lone mother with 2 children aged 4 and 6 (a) not working—after 1 year on benefit
Supplementary Benefit Rent Rates Housing Benefit CHB FWM FSM Net Weekly Spending Power
43.00 16.50 7.95 22.80 18.55 1.61 2.06 63.57

(b) working part-time—earning £20
Supplementary Benefit Earnings NI Fares to Work Rent Rates Housing Benefit CHB FWM FSM Net Weekly Spending Power
28.50* 20.00 Nil 3.00 16.50 7.95 22.80 18.55 1.61 2.06 66.07

* Assumes benefit in payments for less than 1 year.

(c) working part-time—earning £40
Supplementary Benefit Earnings NI Fares to Work Rent Rates Housing Benefit CHB FWM FSM Net Weekly Spending Power
12.00* 40.00 2.00 3.00 16.50 7.95 22.80 18.55 1.61 2.06 67.57

* Assumes benefit in payment for less than 1 year.

(d) working full-time
Earnings Head Tax NI FIS CHB Rent Rent Rebate Rates Rate Rebate Fares to Work FWM/FSM Net Weekly Spending Power
60 — 4.20 24.50 18.55 16.50 13.26 7.95 4.86 5.95 1.61 2.06 90.24
70 1.07 4.90 19.50 18.55 16.5- 12.01 7.95 4.46 5.95 1.61 2.06 91.82
80 4.07 5.60 14.50 18.55 16.50 10.76 7.95 4.06 5.95 1.61 2.06 91.47
90 7.07 8.10 9.50 18.55 16.50 9.45 7.95 3.58 5.95 1.61 2.06 89.18
100 10.07 9.00 4.50 18.55 16.50 8.00 7.95 2.93 5.95 1.61 2.06 88.18
110 13.07 9.90 — 18.55 16.50 6.41 7.95 2.21 5.95 . 2.06 85.86
120 16.07 10.80 — 18.55 16.50 3.51 7.95 0.91 5.95 — 2.06 87.76

Lone mother with 2 children 4 and 6 (a) not working—after 1 year on benefit
Income support Child benefit Rent Rates Housing benefit Free school meal Free welfare milk Net weekly spending power
*41.45 18.55 16.50 7.95 21.54 2.06 1.61 *60.76

* Plus transitional protection for existing claimants.

(b) working part-time—earning £20
Earnings Income support Child benefit Rent Rates Housing benefit Fares to work Free school meals Free welfare milk Net weekly spending power
20.00 36.45 18.55 16.50 7.95 21.54 3.00 2.06 1.61 72.76

(c) working part-time—earning £40
Earnings Income support National insurance Child benefit Rent Rates Housing benefit Fares to work Free school meals Free welfare milk Net weekly spending power
40.00 18.45 2.00 18.55 16.50 7.95 21.54 3.00 2.06 1.61 72.76

(d) working full-time—(there is no entitlement to rent or rates rebate)
Earnings gross Tax NI FC CHB Rent Rates Fares to work Net weekly spending power
60 — 4.20 35.00 18.55 16.50 7.95 5.95 78.95
70 1.07 4.90 29.30 18.55 16.50 7.95 5.95 81.48
80 4.07 5.60 24.90 18.55 16.50 7.95 5.95 83.38
90 7.07 8.10 21.70 18.55 16.50 7.95 5.95 84.68
100 10.07 9.00 17.40 18.55 16.50 7.95 5.95 86.48
110 13.07 9.90 13.20 18.55 16.50 7.95 5.95 88.38
120 16.07 10.80 8.90 18.55 16.50 7.95 5.95 90.18

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