§
Mr. Scott
[holding answer 18 June 1988]: The information requested is set out in the tables. They compare the post-reform position in April 1988 not with an actual pre-reform cash situation but with a hypothetical position which might have occurred, had the previous structure continued and been uprated on the assumptions in "Impact of the Reformed Structure of Income Related Benefits" (October 1987).
In addition, it should be noted that, although the comparisons are based on average local authority housing charges in Kensington and Chelsea, they do not necessarily reflect either the wide variety of rents and domestic rates that people in the borough actually pay or real families' circumstances and their housing arrangements. Finally, the comparisons take no account of the housing benefit transitional cash protection announced on 27 April.
It should be noted that water service charges of £1.78 have been removed from both the pre and post-reform tables. Under income support, water charges are treated like any other item of domestic expenditure.
187W
| Earnings head |
Tax |
NI |
Family credit |
Child benefit |
Rent |
Rent rebate |
Rates2 |
Rate rebate |
Fares to work |
Net weekly spending power |
Difference between systems |
| 120.00 |
12.02 |
10.80 |
12.19 |
14.50 |
42.90 |
20.30 |
11.31 |
2.09 |
5.85 |
86.20 |
+2.11 |
| 130.00 |
14.72 |
11.70 |
7.71 |
14.50 |
42.90 |
19.05 |
11.31 |
1.71 |
5.85 |
86.49 |
+0.60 |
| 140.00 |
17.42 |
12.60 |
3.23 |
14.50 |
42.90 |
17.80 |
11.31 |
1.33 |
5.85 |
86.78 |
+0.92 |
| 150.00 |
20.12 |
13.50 |
0.00 |
14.50 |
42.90 |
15.74 |
11.31 |
0.69 |
5.85 |
87.25 |
-0.41 |
| 160.00 |
22.82 |
14.40 |
0.00 |
14.50 |
42.90 |
11.58 |
11.31 |
0.00 |
5.85 |
88.80 |
-0.33 |
| 170.00 |
25.52 |
15.30 |
0.00 |
14.50 |
42.90 |
7.42 |
11.31 |
0.00 |
5.85 |
91.04 |
-1.19 |
| Old benefit system at hypothetical rates April 1988 |
| Kensington and Chelsea L.A. |
| Married couple with three children aged 3, 8 and 11 |
| Earnings head |
Tax |
NI |
FIS |
Child benefit |
Rent |
Rent rebate |
2Rates |
Rate rebate |
Fares to work |
Free school meals |
Free welfare milk |
Net weekly spending power |
| 60.00 |
0.00 |
3.00 |
32.90 |
21.75 |
42.90 |
32.19 |
11.31 |
8.85 |
5.85 |
5.10 |
1.83 |
99.56 |
| 70.00 |
0.00 |
4.90 |
30.50 |
21.75 |
42.90 |
30.29 |
11.31 |
8.24 |
5.85 |
5.10 |
1.83 |
102.75 |
| 80.00 |
1.22 |
5.60 |
25.50 |
21.75 |
42.90 |
29.04 |
11.31 |
7.84 |
5.85 |
5.10 |
1.83 |
104.18 |
| 90.00 |
3.92 |
6.30 |
20.50 |
21.75 |
42.90 |
27.79 |
11.31 |
7.44 |
5.85 |
5.10 |
1.83 |
104.13 |
| 100.00 |
6.62 |
7.00 |
15.50 |
21.75 |
42.90 |
26.54 |
11.31 |
7.04 |
5.85 |
5.10 |
1.83 |
104.08 |
| 110.00 |
9.32 |
9.90 |
10.50 |
21.75 |
42.90 |
25.15 |
11.31 |
6.55 |
5.85 |
5.10 |
1.83 |
101.60 |
| 120.00 |
12.02 |
10.80 |
5.50 |
21.75 |
42.90 |
23.50 |
11.31 |
5.90 |
5.85 |
5.10 |
1.83 |
100.70 |
| 130.00 |
14.72 |
11.70 |
0.50 |
21.75 |
42.90 |
21.85 |
11.31 |
5.25 |
5.85 |
5.10 |
1.83 |
99.80 |
| 140.00 |
17.42 |
12.60 |
0.00 |
21.75 |
42.90 |
18.71 |
11.31 |
4.02 |
5.85 |
5.10 |
1.83 |
101.33 |
| 150.00 |
20.12 |
13.50 |
0.00 |
21.75 |
42.90 |
15.41 |
11.31 |
2.72 |
5.85 |
5.10 |
1.83 |
103.13 |
| 160.00 |
22.82 |
14.40 |
0.00 |
21.75 |
42.90 |
12.11 |
11.31 |
1.42 |
5.85 |
5.10 |
1.83 |
104.93 |
| 170.00 |
25.52 |
15.30 |
0.00 |
21.75 |
42.90 |
8.81 |
11.31 |
0.00 |
5.85 |
5.10 |
0.00 |
104.78 |
| New benefit system from April 1988 |
| Kensington and Chelsea local authority |
| Married couple with three children aged 3, 8 and 11 |
| Earnings head |
Tax |
NI |
Family credit |
Child benefit |
Rent |
Rent rebate |
Rates2 |
Rate rebate |
Fares to work |
Net weekly spending power |
Difference between systems |
| 60.00 |
0.00 |
3.00 |
51.72 |
21.75 |
42.90 |
26.48 |
11.31 |
4.00 |
5.85 |
100.89 |
+1.33 |
| 70.00 |
0.00 |
4.90 |
46.05 |
21.75 |
42.90 |
24.90 |
11.31 |
3.51 |
5.85 |
101.25 |
-1.50 |
| 80.00 |
1.22 |
5.60 |
40.39 |
21.75 |
42.90 |
23.32 |
11.31 |
3.02 |
5.85 |
101.60 |
-2.58 |
| 90.00 |
3.92 |
6.30 |
35.77 |
21.75 |
42.90 |
22.04 |
11.31 |
2.63 |
5.85 |
101.91 |
-2.22 |
| 100.00 |
6.62 |
7.00 |
31.15 |
21.75 |
42.90 |
20.75 |
11.31 |
2.23 |
5.85 |
102.20 |
-1.88 |
| 110.00 |
9.32 |
9.90 |
28.07 |
21.75 |
42.90 |
19.89 |
11.31 |
1.97 |
5.85 |
102.40 |
+ 0.80 |
| 120.00 |
12.02 |
10.80 |
23.59 |
21.75 |
42.90 |
18.64 |
11.31 |
1.58 |
5.85 |
102.68 |
+1.93 |
| 130.00 |
14.72 |
11.70 |
19.11 |
21.75 |
42.90 |
17.39 |
11.31 |
1.20 |
5.85 |
102.97 |
+3.17 |
| 140.00 |
17.42 |
12.60 |
14.63 |
21.75 |
42.90 |
16.15 |
11.31 |
0.82 |
5.85 |
103.27 |
+1.94 |
| 150.00 |
20.12 |
13.50 |
10.15 |
21.75 |
42.90 |
14.90 |
11.31 |
0.00 |
5.85 |
103.12 |
-0.01 |
| 160.00 |
22.82 |
14.40 |
5.67 |
21.75 |
42.90 |
13.65 |
11.31 |
0.00 |
5.85 |
103.79 |
-1.14 |
| 170.00 |
25.52 |
15.30 |
1.19 |
21.75 |
42.90 |
12.40 |
11.31 |
0.00 |
5.85 |
104.46 |
-0.32 |
| Old benefit system at hypothetical rates April 1988 |
| Kensington and Chelsea L.A. |
| Single person with two children aged 4 and 6 |
| Earnings head |
Tax |
NI |
FIS |
Child benefit |
Rent |
Rent rebate |
2Rates |
Rate rebate |
Fares to work |
Free school meals |
Free welfare milk |
Net weekly spending power |
| 60.00 |
0.00 |
3.00 |
28.70 |
19.40 |
42.90 |
29.93 |
11.31 |
8.13 |
5.85 |
2.55 |
1.83 |
87.48 |
| 70.00 |
0.00 |
4.90 |
23.70 |
19.40 |
42.90 |
28.68 |
11.31 |
7.73 |
5.85 |
2.55 |
1.83 |
88.93 |
| 80.00 |
1.22 |
5.60 |
18.70 |
19.40 |
42.90 |
27.43 |
11.31 |
7.33 |
5.85 |
2.55 |
1.83 |
90.36 |
| 90.00 |
3.92 |
6.30 |
13.70 |
19.40 |
42.90 |
26.18 |
11.31 |
6.93 |
5.85 |
2.55 |
1.83 |
90.36 |
| 100.00 |
6.62 |
7.00 |
8.70 |
19.40 |
42.90 |
24.67 |
11.31 |
6.36 |
5.85 |
2.55 |
1.83 |
89.83 |
| 110.00 |
9.32 |
9.90 |
3.70 |
19.40 |
42.90 |
23.02 |
11.31 |
5.71 |
5.85 |
2.55 |
1.83 |
86.93 |
| 120.00 |
12.02 |
10.80 |
0.00 |
19.40 |
42.90 |
20.94 |
11.31 |
4.89 |
5.85 |
2.55 |
0.00 |
84.90 |
| 130.00 |
14.72 |
11.70 |
0.00 |
19.40 |
42.90 |
17.64 |
11.31 |
3.59 |
5.85 |
2.55 |
0.00 |
86.70 |
| 140.00 |
17.42 |
12.60 |
0.00 |
19.40 |
42.90 |
14.34 |
11.31 |
2.29 |
5.85 |
2.55 |
0.00 |
88.50 |
| 150.00 |
20.12 |
13.50 |
0.00 |
19.40 |
42.90 |
11.04 |
11.31 |
0.99 |
5.85 |
2.55 |
0.00 |
90.30 |
| 160.00 |
22.82 |
14.40 |
0.00 |
19.40 |
42.90 |
7.74 |
11.31 |
0.00 |
5.85 |
2.55 |
0.00 |
92.41 |
| 170.00 |
25.52 |
15.30 |
0.00 |
19.40 |
42.90 |
4.44 |
11.31 |
0.00 |
5.85 |
2.55 |
0.00 |
95.51 |
188W189W
| New benefit system from April 1988 |
| Kensington and Chelsea local authority |
| Single person with two children aged 4 and 6 |
| Earnings head |
Tax |
NI |
Family credit |
Child benefit |
Rent |
Rent rebate |
2Rates |
Rate rebate |
Fares to work |
Net weekly spending power |
Difference between systems |
| 60.00 |
0.00 |
3.00 |
40.32 |
19.40 |
42.90 |
22.06 |
11.31 |
2.64 |
5.85 |
81.36 |
.612 |
| 70.00 |
0.00 |
4.90 |
34.65 |
19.40 |
42.90 |
20.48 |
11.31 |
2.15 |
5.85 |
81.72 |
-7.21 |
| 80.00 |
1.22 |
5.60 |
28.99 |
19.40 |
42.90 |
18.90 |
11.31 |
1.66 |
5.85 |
82.07 |
-8.29 |
| 90.00 |
3.92 |
6.30 |
24.37 |
19.40 |
42.90 |
17.62 |
11.31 |
1.27 |
5.85 |
82.38 |
-7.93 |
| 100.00 |
6.62 |
7.00 |
19.75 |
19.40 |
42.90 |
16.33 |
11.31 |
0.87 |
5.85 |
82.67 |
-7.16 |
| 110.00 |
9.32 |
9.90 |
16.67 |
19.40 |
42.90 |
15.47 |
11.31 |
0.61 |
5.85 |
82.87 |
-4.06 |
| 120.00 |
12.02 |
10.80 |
12.19 |
19.40 |
42.90 |
14.22 |
11.31 |
0.00 |
5.85 |
82.93 |
-1.97 |
| 130.00 |
14.72 |
11.70 |
7.71 |
19.40 |
42.90 |
12.97 |
11.31 |
0.00 |
5.85 |
83.60 |
-3.10 |
| 140.00 |
17.42 |
12.60 |
3.23 |
19.40 |
42.90 |
11.73 |
11.31 |
0.00 |
5.85 |
84.28 |
-4.22 |
| 150.00 |
20.12 |
13.50 |
0.00 |
19.40 |
42.90 |
9.67 |
11.31 |
0.00 |
5.85 |
85.39 |
-4.91 |
| 160.00 |
22.82 |
14.40 |
0.00 |
19.40 |
42.90 |
5.51 |
11.31 |
0.00 |
5.85 |
87.63 |
-4.78 |
| 170.00 |
25.52 |
15.30 |
0.00 |
19.40 |
42.90 |
1.35 |
11.31 |
0.00 |
5.85 |
89.87 |
-5.64 |
| Old tax and benefit system—assuming average local authority rent and rates for Kensington and Chelsea and a simple reseating of April 1987 benefits to April 1988 |
| Lone mother with two children aged 4 and 6 |
|
Supplementary benefit |
Earnings |
Tax |
NI |
Fares to work |
Rent |
Rates2 |
Housing benefit |
CHB |
FSM |
FWM |
Net weekly spending power |
| (a) Not working after one year on benefit |
45.93 |
— |
— |
— |
— |
42.90 |
11.31 |
54.21 |
19.40 |
2.55 |
1.83 |
69.71 |
| (b) Working part time earning £20 |
130.89 |
20.00 |
0.00 |
0.00 |
2.92 |
42.90 |
11.31 |
54.21 |
19.40 |
2.55 |
1.83 |
71.75 |
| (c) Working part time earning £40 |
114.35 |
40.00 |
0.00 |
2.00 |
2.92 |
42.90 |
11.31 |
54.21 |
19.40 |
2.55 |
1.83 |
73.21 |
| 1 Assumes benefit in payment for less than one year. |
| 2 Water charges have been removed from both pre and post reform tables (£1.78). Under Income Support, water service charges are treated like any other part of household expenditure. |
| Benefit system from April 1988 |
| Assumptions as in "Impact of reformed structure of income related benefits" October 1987 |
| Average rent and rates for Kensington and Chelsea local authority |
| Lone mother with two children aged 4 and 6 |
|
Income Support |
Rent |
Rates |
Housing Benefit |
CHB |
FSM |
FWM |
Net weekly spending power |
Difference between systems |
| (a) Not working after one year on benefit |
45.35 |
42.90 |
11.31 |
51.95 |
19.40 |
2.55 |
1.83 |
66.87 |
-2.84 |
|
Income support |
Earnings |
Tax |
NI |
Fares to work |
Rent |
Rates |
Housing benefit |
CHB |
FSM |
FWM |
Net weekly spending power |
Difference between systems |
| (b) Working part time earning £20 |
40.35 |
20.00 |
0.00 |
0.00 |
2.92 |
42.90 |
11.31 |
51.95 |
19.40 |
2.55 |
1.83 |
78.95 |
+7.20 |
| (c) Working part time earning £40 |
20.35 |
40.00 |
0.00 |
0.00 |
2.92 |
42.90 |
11.31 |
51.95 |
19.40 |
2.55 |
1.83 |
78.95 |
+5.74 |