§ Mr. Frank FieldTo ask the Secretary of State for Social Services if he will update again 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, but assuming that income tax and national insurance remain at current levels; and if he will update again 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 were faced with social security changes in April, but assuming that there will be no change in the level of national insurance contributions or income tax.
§ Mr. ScottFor a full-time working family paying income tax and national insurance contributions, and
508Wcategories were determined each month; and how many applications in each of these categories were granted each month.
§ Mr. ScottThe following numbers of social fund applications were made to the two Norwich offices:
Chantry house Baltic house Supplementary benefit live load as at 17 November 1987 15,350 17,684 Income support live load as at 31 May 1988 13,129 14,633 Those figures may, however, overstate the number of people receiving supplementary benefit. I refer the hon. Gentleman to the footnote to the replu given to my hon. Friend the Member for Hyndburn (Mr. Hargreaves) on 31 March 1988, at columns 660–61.
(Source: 100 per cent, count of cases in action which includes a small number of cases not actually in receipt of benefit.)
The number of income support claims received and determined for each office is as follows:
receiving income-related benefits, an extra £1 of gross earnings can lead to an increase in income tax of 25p, a 9p increase in national insurance contributions, 46p reduction in family credit and a 17p reduction in housing benefit—a total of 97p. Only 45,000 out of 17 million working heads of tax units are likely to have combined income tax and benefit withdrawal rates in excess of 90 per cent. In April 1987, 70,000 working heads experienced a combined rate in excess of 100 per cent.
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 local authority rates, would be £123.25 at gross weekly earnings of £75. This figure would rise to £140.90 at gross earnings of £165. Prior to the reform of social security, net income at £75 gross earnings would have been about £127. It would then have fallen below this level until gross earnings reached £165.
509WThe effects under the reformed social security scheme are cushioned somewhat by the fact that family credit is paid for 26 weeks irrespective of any subsequent change in circumstances.