HC Deb 13 May 1986 vol 97 cc444-5W
Mr. Gordon Brown

asked the Secretary of State for Social Services at what level of gross income entitlement to housing benefit will cease, assuming that family credit is claimed where appropriate under his proposals in Cmnd. 9691 on the same basis as his reply of 24 January to the hon. Member for Dunfermline, East; Official Report, columns 345–6.

Mr. Newton

[pursuant to his reply, 25 April 1986, c. 264–65]: The gross income levels at which entitlement to housing benefit will cease on the illustrative assumptions used in the technical annex to Cmnd. 9691, and assuming family credit is claimed where appropriate, are set out as follows. Entitlement ceases at a lower gross income where family credit is in payment than where it is not because family credit will not be subject to income tax or national insurance contributions.

Household Type Gross Income
(£ weekly)
(i) Single person 71.52
(ii) Childless couple 98.76
(iii) Couple with one child 114.99
(iv) Couple with two children 117.80
(v) Couple with three children 134.04
(vi) Couple with four children 145.39
(vii) Lone parent with one child 96.81
(viii) Lone parent with two children 106.79
(ix) Lone parent with three children 123.70
(x) Lone parent with four children 138.68

Notes

1. The following rent and domestic rate levels respectively have been assumed for the various household types: £13.80 and £5.20 for (i) and (ii), £15.40 and £6.20 for (iii) and (vii); £16.50 and £6.30 for (iv), (v), (vi), (viii), (ix) and (x).

2. The current minimum benefit level of 50 pence has been used throughout.

3. The November 1985 tax allowances, national insurance rates, and levels of child benefit and one-parent benefit, have been used throughout.

4. The single person has been assumed to be aged over 25.

5. The ages of the children have been assumed to be as follows: under 11 years where only 1 or 2 children; 1 over 11 and 2 under 11 years where 3 children; 2 over 11 an 2 under 11 years where 4 children.

6. It has been assumed in each case that the head of the household only is in work.

7. Other assumptions are based on the illustrative figures used in the Technical Annex to Cmnd. 9691; income support rates as in paragraph 2.4 of the Annex: a taper of 60 per cent. for housing benefit in relation to rent and 20 per cent. in relation to rates; and all householders make a minimum contribution of 20 per cent. towards their rates.

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