HC Deb 11 July 1988 vol 137 cc66-71W
Mr. Nigel Griffiths

To ask the Secretary of State for Social Services if, in the manner of his answer of 8 March,Official Report, columns 181–90, he will publish tables showing the net weekly spending power for each of (a) a couple with a child aged 11 years, (b) a couple with two children aged eight and 11 years, (c) a couple with three children aged eight, 11 and 15 years and (d) a couple with four children aged three, eight, 11, and 15 years, with weekly earnings of £60 to £170 (at £10 intervals) under (i) the tax and benefit system before April and (ii) the system in place following the concessions announced on 27 April but prior to the implementation of the 1988 Budget changes; and if he will acid a column showing the difference between two systems in every circumstance.

Mr. Scott

[holding answer 6 May 1988]Hypothetical illustrations showing the effects of the housing benefit transitional protection arrangements announced on 27 April can be set out on the basis requested only if they are expressed in cash terms and compare the tax and benefit systems in April 1987 and April 1988. The results are therefore hypothetical in four quite separate senses. First, average local authority housing charges mask the wide-variety of rents and domestic rates that local authority tenants actually pay. Secondly, they do not reflect the wide variety of families' circumstances and their housing arrangements in the relevant parts of the income distribution. Thirdly, and of particular importance in this context, it is not possible within the confines of the tax-benefit model tables to take account of earnings growth between April 1987 and April 1988. Fourthly, in practice, full-time earners will be benefiting from lower tax rates and higher real tax thresholds arising out of this year's Budget when they begin to receive their transitional protection. In this sense, and because the tables implicitly assume zero earnings growth, the illustrations are more than usually difficult to interpret.

Earnings head Tax NI FIS CHB Rent Rent rebate Rates Rate rebate Fares to work FSM FWM Net weekly spending power
160.00 23.50 14.40 .00 7.25 17.10 .00 7.20 .00 5.85 .00 .00 99.20
170.00 26.20 15.30 .00 7.25 17.10 .00 7.20 .00 5.85 .00 .00 105.60

New System:
Earnings head Tax NI Family credit CHB Rent Rent rebate Rates Rate rebate Fares to work Net weekly spending power Trans, protection New NWSP Difference between systems after TP
60.00 .00 3.00 39.62 7.25 17.82 4.71 7.50 1.97 5.85 79.38 .00 79.38 +1.96
70.00 .00 4.90 33.95 7.25 17.82 3.13 7.50 1.48 5.85 79.74 .00 79.74 +.87
80.00 1.90 5.60 28.76 7.25 17.82 1.69 7.50 1.04 5.85 80.07 .00 80.07 +.45
90.00 4.60 6.30 24.14 7.25 17.82 .00 7.5O .64 5.85 79.96 .00 79.96 +.39
100.00 7.30 7.00 19.52 7.25 17.82 .00 7.50 .00 5.85 81.30 .00 81.30 +4.28
110.00 10.00 9.90 16.44 7.25 17.82 .00 7.50 .00 5.85 82.62 .00 82.62 +6.85
120.00 12.70 10.80 11.96 7.25 17.82 .00 7.50 .00 5.85 84.54 .00 84.54 +6.97
130.00 15.40 11.70 7.48 7.25 17.82 .00 7.50 .00 5.85 86.46 .00 86.46 +6.46
140.00 18.10 12.60 3.00 7.25 17.82 .00 7.50 .00 5.85 88.38 .00 88.38 +1.98
150.00 20.80 13.50 .00 7.25 17.82 .00 7.50 .00 5.85 91.78 .00 91.78 n/a
160.00 23.50 14.40 .00 7.25 17.82 .00 7.50 .00 5.85 98.18 .00 98.18 n/a
170.00 26.20 15.30 .00 7.25 17.82 .00 7.50 .00 5.85 104.58 .00 104.58 n/a

Comparison of old and new benefit systems demonstrating the effect of housing benefit transitional protection (b) Married couple with 2 children aged 8 and 11
Old system:
Earnings head Tax NI FIS CHB Rent Rent rebate Rates Rate rebate Fares to work FSM FWM Net weekly spending power
60.00 0.00 3.00 26.90 14.50 18.35 15.40 7.70 6.02 5.85 5.10 0.00 93.02
70.00 0.00 4.90 21.90 14.50 18.35 14.15 7.70 5.62 5.85 5.10 0.00 94.47
80.00 1.90 5.60 16.90 14.50 18.35 12.90 7.70 5.22 5.85 5.10 0.00 95.22
90.00 4.60 6.30 11.90 14.50 18.35 11.65 7.70 4.82 5.85 5.10 0.00 95.17
100.00 7.30 9.00 6.90 14.50 18.35 10.20 7.70 4.30 5.85 5.10 0.00 92.80
110.00 10.00 9.90 1.90 14.50 18.35 8.55 7.70 3.65 5.85 5.10 0.00 91.90
120.00 12.70 10.80 0.00 14.50 18.35 5.88 7.70 2.60 5.85 5.10 0.00 92.68
130.00 15.40 11.70 0.00 14.50 18.35 2.58 7.70 1.30 5.85 2.55 0.00 91.93
140.00 18.10 12.60 0.00 14.50 18.35 0.00 7.70 0.00 5.85 0.00 0.00 91.90
150.00 20.80 13.50 0.00 14.50 18.35 0.00 7.70 0.00 5.85 0.00 0.00 98.30
160.00 23.50 14.40 0.00 14.50 18.35 0.00 7.70 0.00 5.85 0.00 0.00 104.70
170.00 26.20 15.30 0.00 14.50 18.35 0.00 7.70 0.00 5.85 0.00 0.00 111.10

New System:
Earnings head Tax NI Family credit CHB Rent Rent rebate Rates Rate rebate Fares to work Net weekly spending power Trans, protection New NWSP Difference between systems after TP
60.00 .00 3.00 45.67 14.50 19.12 4.36 8.02 1.87 5.85 90.41 .00 90.41 -2.61
70.00 .00 4.90 40.00 14.50 19.12 2.78 8.02 1.39 5.85 90.78 .10 90.88 -3.59
80.00 1.90 5.60 34.81 14.50 19.12 1.33 8.02 .94 5.85 91.09 .54 91.63 -3.59
90.00 4.60 6.30 30.19 14.50 19.12 .00 8.02 .55 5.85 91.35 .23 91.58 -3.59
100.00 7.30 7.00 25.57 14.50 19.12 .00 8.02 .00 5.85 92.78 .00 92.78 -.02
110.00 10.00 9.90 22.49 14.50 19.12 .00 8.02 .00 5.85 94.10 .00 94.10 +2.20
120.00 12.70 10.80 18.01 14.50 19.12 .00 8.02 .00 5.85 96.02 .00 96.02 +3.34
130.00 15.40 11.70 13.53 14.50 19.12 .00 8.02 .00 5.85 97.94 .00 97.94 +6.01
140.00 18.10 12.60 9.05 14.50 19.12 .00 8.02 .00 5.85 99.86 .00 99.86 +7.96
150.00 20.80 13.50 4.57 14.50 19.12 .00 8.02 .00 5.85 101.78 .00 101.78 +3.48
160.00 23.50 14.40 .00 14.50 19.12 .00 8.02 .00 5.85 103.61 .00 103.61 n/a
170.00 26.20 15.30 .00 14.50 19.12 .00 8.02 .00 5.85 110.01 .00 110.01 n/a

Comparison of Old and New Benefit Systems demonstrating the effect of Housing Benefit Transitional Protection (c) Married couple with 3 children aged 8, 11 and 15
Old System:
Earnings head Tax NI FIS CHB Rent Rent rebate Rates Rate rebate Fares to work FSM FWM Net weekly spending power
60.00 .00 3.00 32.15 21.75 18.35 15.96 7.70 6.20 5.85 7.65 .00 108.81
70.00 .00 4.90 28.30 21.75 18.35 14.42 7.70 5.71 5.85 7.65 .00 111.03
80.00 1.90 5.60 23.30 21.75 18.35 13.17 7.70 5.31 5.85 7.65 .00 111.78
90.00 4.60 6.30 18.30 21.75 18.35 11.92 7.70 4.91 5.85 7.65 .00 111.73
100.00 7.30 9.00 13.30 21.75 18.35 10.56 7.70 4.44 5.85 7.65 .00 109.50
110.00 10.00 9.90 8.30 21.75 18.35 8.91 7.70 3.79 5.85 7.65 .00 108.60
120.00 12.70 10.80 3.30 21.75 18.35 7.26 7.70 3.14 5.85 7.65 .00 107.70
130.00 15.40 11.70 .00 21.75 18.35 5.05 7.70 2.27 5.85 7.65 .00 107.72
140.00 18.10 12.60 .00 21.75 18.35 1.75 7.70 .97 5.85 7.65 .00 109.52
150.00 20.80 13.50 .00 21.75 18.35 .00 7.70 .00 5.85 5.10 .00 110.65
160.00 23.50 14.40 .00 21.75 18.35 .00 7.70 .00 5.85 .00 .00 111.95
170.00 26.20 15.30 .00 21.75 18.35 .00 7.70 .00 5.85 .00 .00 118.35

New System
Earnings head Tax NI Family credit CHB Rent Rent rebate Rates Rate rebate Fares to work Net weekly spending power Trans protection New NWSP Difference between systems after TP
60.00 .00 3.00 57.07 21.75 19.12 2.70 8.02 1.36 5.85 106.89 .00 106.89 -1.92
70.00 .00 4.90 51.40 21.75 19.12 1.12 8.02 .88 5.85 107.26 .18 107.44 -3.59
80.00 1.90 5.60 46.21 21.75 19.12 .00 8.02 .00 5.85 107.47 .72 108.19 -3.59
90.00 4.60 6.30 41.59 21.75 19.12 .00 8.02 .00 5.85 109.45 .00 109.45 -2.28
100.00 7.30 7.00 36.97 21.75 19.12 .00 8.02 .00 5.85 111.43 .00 111.43 +1.93
110.00 10.00 9.90 33.89 21.75 19.12 .00 8.02 .00 5.85 112.75 .00 112.75 +4.15
120.00 12.70 10.80 29.41 21.75 19.12 .00 8.02 .00 5.85 114.67 .00 114.67 +6.97
130.00 15.40 11.70 24.93 21.75 19.12 .00 8.02 .00 5.85 116.59 .00 116.59 +8.87
140.00 18.10 12.60 20.45 21.75 19.12 .00 8.02 .00 5.85 118.51 .00 118.51 +8.99
150.00 20.80 13.50 15.97 21.75 19.12 .00 8.02 .00 5.85 120.43 .00 120.43 +9.78
160.00 23.50 14.40 11.49 21.75 19.12 .00 8.02 .00 5.85 122.35 .00 122.35 +10.40
170.00 26.20 15.30 7.01 21.75 19.12 .00 8.02 .00 5.85 124.27 .00 124.27 +5.92

Comparison of Old and New Benefit Systems demonstrating the effect of Housing Benefit Transitional Protection (d) Married couple with 4 children aged 3, 8, 11 and 15
Old System-
Earnings head Tax NI FIS CHB Rent Rent rebate Rates Rate rebate Fares to work FSM FWM Net weekly spending power
60.00 .00 3.00 34.75 29.00 18.35 17.19 7.70 6.60 5.85 7.65 1.83 122.12
70.00 .00 4.90 34.30 29.00 18.35 14.80 7.70 5.83 5.85 7.65 1.83 126.61
80.00 1.90 5.60 29.30 29.00 18.35 13.55 7.70 5.43 5.85 7.65 1.83 127.36
90.00 4.60 6.30 24.30 29.00 18.35 12.30 7.70 5.03 5.85 7.65 1.83 127.31
100.00 7.30 9.00 19.30 29.00 18.35 11.05 7.70 4.63 5.85 7.65 1.83 125.26
110.00 10.00 9.90 14.30 29.00 18.35 9.41 7.70 3.99 5.85 7.65 1.83 124.38
120.00 12.70 10.80 9.30 29.00 18.35 7.76 7.70 3.34 5.85 7.65 1.83 123.48
130.00 15.40 11.70 4.30 29.00 18.35 6.11 7.70 2.69 5.85 7.65 1.83 122.58
140.00 18.10 12.60 .00 29.00 18.35 4.23 7.70 1.95 5.85 7.65 1.83 122.06
150.00 20.80 13.50 .00 29.00 18.35 .93 7.70 .65 5.85 7.65 .00 122.03
160.00 23.50 14.40 .00 29.00 18.35 .00 7.70 .00 5.85 7.65 .00 126.85
170.00 26.20 15.30 .00 29.00 18.35 .00 7.70 .00 5.85 2.55 .00 128.15

New system
Earnings head Tax NI Family credit CHB Rent Rent rebate Rates Rate rebate Fares to work Net weekly spending power Trans, protection New NWSP Difference between systems after TP
60.00 .00 3.00 63.12 29.00 19.12 1.04 8.02 .85 5.85 118.02 .79 118.81 -3.31
70.00 .00 4.90 57.45 29.00 19.12 .00 8.02 .00 5.85 118.56 5.18 123.74 -2.87
80.00 1.90 5.60 52.26 29.00 19.12 .00 8.02 .00 5.85 120.77 3.72 124.49 -2.87
90.00 4.60 6.30 47.64 29.00 19.12 .00 8.02 .00 5.85 122.75 1.69 124.44 -2.87
100.00 7.30 7.00 43.02 29.00 19.12 .00 8.02 .00 5.85 124.73 .00 124.73 -.53

Earnings head Tax NI Family credit CHB Rent Rent rebate Rates Rate rebate Fares to work Net weekly spending power Trans, protection New NWSP Difference between systems after TP
110.00 10.00 9.90 39.94 29.00 19.12 .00 8.02 .00 5.85 126.05 .00 126.05 +1.67
120.00 12.70 10.80 35.46 29.00 19.12 .00 8.02 .00 5.85 127.97 .00 127.97 +4.49
130.00 15.40 11.70 30.98 29.00 19.12 .00 8.02 .00 5.85 129.89 .00 129.89 +7.31
140.00 18.10 12.60 26.50 29.00 19.12 .00 8.02 .00 5.85 131.81 .00 131.81 +9.75
150.00 20.80 13.50 22.02 29.00 19.12 .00 8.02 .00 5.85 133.73 .00 133.73 +11.70
160.00 23.50 14.40 17.54 29.00 19.12 .00 8.02 .00 5.85 135.65 .00 135.65 +8.80
170.00 26.20 15.30 13.06 29.00 19.12 .00 8.02 .00 5.85 137.57 .00 137.57 +9.42

Notes:

1. Old scheme as at April 1987 benefit, NI and tax rates.

2. New scheme as at April 1988 benefit and NI rates, and April 1987 tax rates.

3. FIS transitional protection is assumed not to be payable in any case.

4. Other assumptions used are those set out in "Impact of the Reformed Structure of Income-Related Benefits," October 1987.

5. Cash differences to benefits in kind have been neutralised because conversion of free school meals and welfare milk to cash is compensated at April 1988 prices within Family Credit. Cash differences to fares to work are also neutralised since these do not come within the scope of the tax and benefit systems. Water charges have been neutralised by removing them from both the pre and post reform tables (£1.70 and £1.78 per week, respectively). Under income support, water service charges are treated like any other part of household expenditure.

6. The tables are designed to illustrate transitional protection assuming zero cash earnings growth. Cash differences outside the range of the benefit system are therefore irrelevant to the impact of transitional protection.

Mr. Wigley

To ask the Secretary of State for Social Services (1) whether he will consider revising the 1974 circular on local authorities' duties in relation to the mentally ill in order to clarify these duties;

(2) if he will outline the progress which has been made on the implementation of the proposals for the care of the mentally ill contained in the Social Services Select Committee report of 1984–85 on community care.

Mr. Newton

[holding answer 23 May 1988]: The question of revision of the 1974 circular on the duties of local authorities in relation to mentally ill people was one of three recommendations concerning mental illness (Nos. 47, 48 and 51) which the Social Services Committee in its report of 1984–85 specifically addressed to the Department. An interim response to these recommendations was given in Cm. 9674 and the present position is as follows: Recommendation 47: The revision of departmental planning guidance on hospital accommodation for mentally ill people is now virtually complete and publication of a health building note is expected shortly. Recommendation 48: The duties of local authorities in relation to non-medical services for mentally ill people (circular 19/74) are being considered in the light of Sir Roy Griffiths' report on community care, on which Government proposals will be presented in due course. Recommendation 51: £269,000 of the £5,584,000 available in 1988–89 under the Department's "Opportunities for Volunteering" scheme has been allocated to MIND for projects relating to unemployed people recovering from mental illness.