§ Mr. Frank FieldTo ask the Secretary of State for Social Services (1) if he will update the information given in the first paragraph of the section on poverty and unemployment traps which appears on page 94 of the current issue of "Social Trends", taking into account changes in housing benefit, and the transition from supplementary benefit to income support in April 1988, but assuming that income tax and national insurance remain at current levels;
(2) if he will update the information given in the second paragraph of the section on poverty and unemployment traps which appears on page 94 of the current issue of "Social Trends", assuming that a married couple with four children will be faced with social security changes in April 1988, but that there will be no change in the level of national insurance contributions or income tax.
§ Mr. Scott[holding answer 23 November 1987: In the most extreme case of the poverty trap, as specified, an extra £1 of gross earnings could lead to an increase in income tax of 27p, a 9p increase in national insurance contributions, a 45p reduction in family credit and a 16p reduction in housing benefit—a total of 97p. In April 1987 the corresponding figure was £1.09.
After the addition of benefits, the net income of a hypothetical married couple with four dependent children (aged 3, 8, 11 and 16), and paying average rent and rates, would be £122.72 at gross earnings of £75—This figure would rise to £138.69 at gross earnings of £160. Prior to the reform of the social security system, net income would have remained below £122.72 as gross earnings rose above £75.
The figures given combine various assumptions from the April 1987 tax benefit model tables and the April 1988 social security benefit rates. The position would differ on different assumptions.