HC Deb 04 February 1988 vol 126 cc737-41W
Sir Brandon Rhys Williams

To ask 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 (i) with two children aged four and six years and (ii) with three children aged three, eight and 11 years; earning (1) £60, (2) £70, (3) £80, (4) £90, (5) £100, (6) £110, (7) £120, (8) £130, (9) £140, (10) £150, (11) £160 and (12) £170(a) under the existing tax and benefit systems and (b) under the benefit system which will be implemented in April 1988;

(2) if he will publish figures, similar to those in his Department's tax/benefit model tables, comparing net

A. Existing tax and benefit system—assuming average local authority rent and rates and a simple rescaling of April 1987 benefits to April 1988
Earnings head Tax NI FIS CHB Rent Rent rebate Water rates (£1.78) rates Rate rebate Fares to work FSM FWM Net weekly spending power
Married couple 60 with two children aged 4 and 6
60 0.00 3.00 28.70 14.50 19.12 16.88 9.80 6.54 5.85 2.55 1.83 93.23
70 0.00 4.90 23.70 14.50 19.12 15.63 9.80 6.14 5.85 2.55 1.83 94.68
80 1.22 5.60 18.70 14.50 19.12 14.38 9.80 5.74 5.85 2.55 1.83 96.11
90 3.92 6.30 13.70 14.50 19.12 13.13 9.80 5.34 5.85 2.55 1.83 96.06
100 6.62 7.00 8.70 14.50 19.12 11.88 9.80 4.94 5.85 2.55 1.83 96.01
110 9.32 9.90 3.70 14.50 19.12 10.37 9.80 4.38 5.85 2.55 1.83 93.34
120 12.02 10.80 0.00 14.50 19.12 8.29 9.80 3.56 5.85 2.55 1.83 91.31
130 14.72 11.70 0.00 14.50 19.12 4.99 9.80 2.26 5.85 2.55 1.83 93.11
140 17.42 12.60 0.00 14.50 19.12 1.69 9.80 0.96 5.85 2.55 1.83 94.91
150 20.12 13.50 0.00 14.50 19.12 0.00 9.80 0.00 5.85 2.55 1.83 96.11
160 22.82 14.40 0.00 14.50 19.12 0.00 9.80 0.00 5.85 2.55 1.83 102.51
170 25.52 15.30 0.00 14.50 19.12 0.00 9.80 0.00 5.85 2.55 1.83 108.91
Married couple with three children aged 3, 8 and 11
60 0.00 3.00 32.90 21.75 19.12 17.92 9.80 6.89 5.85 5.10 1.83 108.59
70 0.00 4.90 30.50 21.75 19.12 16.02 9.80 6.29 5.85 5.10 1.83 111.79
80 1.22 5.60 25.50 21.75 19.12 14.77 9.80 5.89 5.85 5.10 1.83 113.22
90 3.92 6.30 20.50 21.75 19.12 13.52 9.80 5.49 5.85 5.10 1.83 113.17
100 6.62 7.00 15.50 21.75 19.12 12.27 9.80 5.09 5.85 5.10 1.83 113.12
110 9.32 9.90 10.50 21.75 19.12 10.88 9.80 4.60 5.85 5.10 1.83 110.64
120 12.02 10.80 5.50 21.75 19.12 9.23 9.80 3.95 5.85 5.10 1.83 109.74
130 14.72 11.70 0.50 21.75 19.12 7.58 9.80 3.30 5.85 5.10 1.83 108.84
140 17.42 12.60 0.00 21.75 19.12 4.44 9.80 2.06 5.85 5.10 1.83 108.53
150 20.12 13.50 0.00 21.75 19.12 1.14 9.80 0.76 5.85 5.10 1.83 110.33
160 22.82 14.40 0.00 21.75 19.12 0.00 9.80 0.00 5.85 5.10 1.83 112.28
170 25.52 15.30 0.00 21.75 19.12 0.00 9.80 0.00 5.85 5.10 1.83 116.13

Existing tax and benefit system—assuming average local authority rent and rates and a simple rescaling of April 1987 benefits to April 1988.
Lone mother with two children aged 4 and 6
Supplementary benefit Earnings Tax NI Fares work Rent Rates Housing benefit CHB FSM FWM Net weekly spending power
a. Not working—after one year on benefit
45.93 — — — — 19.12 9.80 27.14 19.40 2.55 1.83 67.93
b. Working part-time—earning £20
30.891 20.00 0.00 0.00 2.92 19.12 9.80 27.14 19.40 2.55 1.83 69.97
c. Working part-time—earning £40
14.351 40.00 0.00 2.00 2.92 19.12 9.80 27.14 19.40 2.55 1.83 71.43
1 Assumes benefit in payment for less than one year.

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 which will be implemented in April 1988 and in each of 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 (i) £60, (ii) £70, (iii) £80, (iv) £90, (v) £100, (vi) £110 and (vii) £120 per week.

Mr. Nicholas Scott

The information requested is set out in the tables. It should be noted that the results are hypothetical in two senses. First, the results are based on average local authority housing charges and do not reflect the wide variety of rents and domestic rates that people actually pay. Secondly, the other assumptions used are those set out in "Impact of the Reformed Structure of Income-Related Benefits," October 1987.

(d) Working full time
Earnings Head Tax NI FIS CHB Rent Rent rebate (Water rate £1.78) Rates Rate rebate Fares to work FSM FWM Net Weekly spending power
60 0.00 3.00 28.70 19.40 19.12 15.66 9.80 6.15 5.85 2.55 1.83 96.52
70 0.00 4.90 23.70 19.40 19.12 14.41 9.80 5.75 5.85 2.55 1.83 97.97
80 1.22 5.60 18.70 19.40 19.12 13.16 9.80 5.35 5.85 2.55 1.83 99.40
90 3.92 6.30 13.70 19.40 19.12 11.91 9.80 4.95 5.85 2.55 1.83 99.35
100 6.62 7.00 8.70 19.40 19.12 10.40 9.80 4.39 5.85 2.55 1.83 98.88
110 9.32 9.90 3.70 19.70 19.12 8.75 9.80 3.74 5.85 2.55 1.83 95.98
120 12.02 10.80 0.00 19.40 19.12 6.67 9.80 2.92 5.85 2.55 1.83 93.95

B. Benefit system from April 1988: Assumptions as in "Impact of reformed structure of income related benefits", October 1987. Average local authority rent and rates
Earnings head Tax NI Family credit Child benefit Rent Rent rebate Water rates (£1.78) rates Rate rebate Fares to work Net weekly spending power
Married couple with two children aged 4 and 6
60.00 0.00 3.00 40.32 14.50 19.12 4.36 9.80 1.87 5.85 83.28
70.00 0.00 4.90 34.65 14.50 19.12 2.78 9.80 1.39 5.85 83.65
80.00 1.22 5.60 28.99 14.50 19.12 1.20 9.80 0.90 5.85 84.00
90.00 3.92 6.30 24.37 14.50 19.12 0.00 9.80 0.51 5.85 84.39
100.00 6.62 7.00 19.75 14.50 19.12 0.00 9.80 0.00 5.85 85.86
110.00 9.32 9.90 16.67 14.50 19.12 0.00 9.80 0.00 5.85 87.18
120.00 12.02 10.80 12.19 14.50 19.12 0.00 9.80 0.00 5.85 89.10
130.00 14.72 11.70 7.71 14.50 19.12 0.00 9.80 0.00 5.85 91.02
140.00 17.42 12.60 3.23 14.50 19.12 0.00 9.80 0.00 5.85 92.94
150.00 20.12 13.50 0.00 14.50 19.12 0.00 9.80 0.00 5.85 96.11
160.00 22.82 14.40 0.00 14.50 19.12 0.00 9.80 0.00 5.85 102.51
170.00 25.52 15.30 0.00 14.50 19.12 0.00 9.80 0.00 5.85 108.91
Married couple with three children aged 3, 8 and 11
60.00 0.00 3.00 51.72 21.75 19.12 2.70 9.80 1.36 5.85 99.76
70.00 0.00 4.90 46.05 21.75 19.12 1.12 9.80 0.88 5.85 100.13
80.00 1.22 5.60 40.39 21.75 19.12 0.00 9.80 0.00 5.85 100.55
90.00 3.92 6.30 35.77 21.75 19.12 0.00 9.80 0.00 5.85 102.53
100.00 6.62 7.00 31.15 21.75 19.12 0.00 9.80 0.00 5.85 104.51
110.00 9.32 9.90 28.07 21.75 19.12 0.00 9.80 0.00 5.85 105.83
120.00 12.02 10.80 23.59 21.75 19.12 0.00 9.80 0.00 5.85 107.75
130.00 14.72 11.70 19.11 21.75 19.12 0.00 9.80 0.00 5.85 109.67
140.00 17.42 12.60 14.63 21.75 19.12 0.00 9.80 0.00 5.85 111.59
150.00 20.12 13.50 10.15 21.75 19.12 0.00 9.80 0.00 5.85 113.51
160.00 22.82 14.40 5.67 21.75 19.12 0.00 9.80 0.00 5.85 115.43
170.00 25.52 15.30 1.19 21.75 19.12 0.00 9.80 0.00 5.85 117.35

Benefit system from April 1988:
Assumptions as in "Impact of Reformed Structure of Income Related Benefits", October 1987
Average local authority rent and rates
Lone mother with two children aged 4 and 6
Income support Rent Rates Housing benefit CHB FSM FWM Net weekly spending power
(a) Not working—after one year on benefit
45.35 19.12 9.80 25.54 19.40 2.55 1.83 65.75

Income support Earnings Tax NI Fares to work Rent Rates Housing benefit CHB FSM FWM Net weekly spending power
(b.) Working part-time—earning £20
40.35 20.00 0.00 0.00 2.92 19.12 9.80 25.54 19.40 2.55 1.83 77.83
(c.) Working part-time—earning £40
20.35 40.00 0.00 0.00 2.92 19.12 9.80 25.54 19.40 2.55 1.83 77.83

D. Working full-time
Earnings head Tax NI Family credit Child benefit Rent Rent rebate Water rates (£1.78) rates Rate rebate Fares to work Net weekly spending power
60.00 0.00 3.00 40.32 19.40 19.12 1.46 9.80 0.98 5.85 84.39
70.00 0.00 4.90 34.65 19.40 19.12 0.00 9.80 0.00 5.85 84.38
80.00 1.22 5.60 28.99 19.40 19.12 0.00 9.80 0.00 5.85 86.80
90.00 3.92 6.30 24.37 19.40 19.12 0.00 9.80 0.00 5.85 88.78
100.00 6.62 7.00 19.75 19.40 19.12 0.00 9.80 0.00 5.85 90.76
110.00 9.32 9.90 16.67 19.40 19.12 0.00 9.80 0.00 5.85 92.08
120.00 12.02 10.80 12.19 19.40 19.12 0.00 9.80 0.00 5.85 94.00