HC Deb 16 June 1988 vol 135 cc280-3W
Mr. Jim Marshall

To ask the Secretary of State for Social Services if he will publish tables using the assumptions in his answer of 4 February,Official Report, columns 737 to 742 using expenditure and benefit figures appropriate for families in Leicester for which he h as sufficient data, and with an additional column showing the extent of the differences that will result from the changes in benefits in April.

Mr. Scott

The information requested is set out in the tables. It should be noted that the results are essentially hypothetical. They compare the post-reform position in April 1988, not with the actual pre-reform cash situation but with a hypothetical position which they might have been in had the previous structure continued and been uprated on the assumptions in "Impact of the Reformed Structure of Income Related Benefits" (October 1987).

Secondly" the comparisons are based on average local authority housing charges in Leicester, but do not reflect the wide variety of rents and domestic rates that people actually pay.

Finally, the comparisons do not take account of the transitional cash protection arrangements announced on 27 April.

New benefit system from April 1988
Leicester L.A.
Married couple with 2 children aged 4 and 6
Earnings head Tax NI Family credit Child benefit Rent Rent rebate Rates Rate rebate Fares to work Net weekly spending power Difference between systems
60.00 0.00 3.00 40.32 14.50 21.44 6.68 8.46 0.96 5.85 83.71 -9.26
70.00 0.00 4.90 34.65 14.50 21.44 5.10 8.46 0.00 5.85 83.60 -10.82
80.00 1.22 5.60 28.99 14.50 21.44 3.52 8.46 0.00 5.85 84.44 -11.41
90.00 3.92 6.30 24.37 14.50 21.44 2.23 8.46 0.00 5.85 85.13 10.67
100.00 6.62 7.00 19.75 14.50 21.44 0.95 8.46 0.00 5.85 85.83 -9.92
110.00 9.32 9.90 16.67 14.50 21.44 0.00 8.46 0.00 5.85 86.20 -6.86
120.00 12.02 10.80 12.19 14.50 21.44 0.00 8.46 0.00 5.85 88.12 -2.91
130.00 14.72 11.70 7.71 14.50 21.44 0.00 8.46 0.00 5.85 90.04 -2.79
140.00 17.42 12.60 3.23 14.50 21.44 0.00 8.46 0.00 5.85 91.96 -2.40
150.00 20.12 13.50 0.00 14.50 21.44 0.00 8.46 0.00 5.85 95.13 0.00
160.00 22.82 14.40 0.00 14.50 21.44 0.00 8.46 0.00 5.85 101.53 0.00
170.00 25.52 15.30 0.00 14.50 21.44 0.00 8.46 0.00 5.85 107.93 0.00

Old benefit system at hypothetical rales April 1988
Leicester L.A.
Married couple with 3 children aged 3, 8 and 11
Earnings head Tax NI FIS Child benefit Rent Rent rebate Rates 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 21.44 19.31 8.46 6.19 5.85 5.10 1.83 108.33
70.00 0.00 4.90 30.50 21.75 21.44 17.41 8.46 5.58 5.85 5.10 1.83 111.52
80.00 1.22 5.60 25.50 21.75 21.44 16.16 8.46 5.18 5.85 5.10 1.83 112.95
90.00 3.92 6.30 20.50 21.75 21.44 14.91 8.46 4.78 5.85 5.10 1.83 112.90
100.00 6.62 7.00 15.50 21.75 21.44 13.66 8.46 4.38 5.85 5.10 1.83 112.85
110.00 9.32 9.90 10.50 21.75 21.44 12.27 8.46 3.89 5.85 5.10 1.83 110.37
120.00 12.02 10.80 5.50 21.75 21.44 10.62 8.46 3.24 5.85 5.10 1.83 109.47
130.00 14.72 11.70 0.50 21.75 21.44 8.97 8.46 2.59 5.85 5.10 1.83 108.57
140.00 17.42 12.60 0.00 21.75 21.44 5.84 8.46 1.36 5.85 5.10 0.00 108.28
150.00 20.12 13.50 0.00 21.75 21.44 2.54 8.46 0.00 5.85 5.10 0.00 110.02
160.00 22.82 14.40 0.00 21.75 21.44 0.00 8.46 0.00 5.85 5.10 0.00 113.88
170.00 25.52 15.30 0.00 21.75 21.44 0.00 8.46 0.00 5.85 0.00 0.00 115.18

New benefit system from April 1988
Leicester L.A.
Married couple with 3 children aged 3, 8 and 11
Earnings head Tax NI Family credit Child benefit Rent Rent rebate Rates Rate rebate Fares to work Net weekly spending power Difference between systems
60.00 0.00 3.00 51.72 21.75 21.44 5.02 8.46 0.00 5.85 99.74 -8.59
70.00 0.00 4.90 46.05 21.75 21.44 3.44 8.46 0.00 5.85 100.59 .10.93
80.00 1.22 5.60 40.39 21.75 21.44 1.86 8.46 0.00 5.85 101.43 -11.52
90.00 3.92 6.30 35.77 21.75 21.44 0.58 8.46 0.00 5.85 102.13 -10.77
100.00 6.62 7.00 31.15 21.75 21.44 0.00 8.46 0.00 5.85 103.53 -9.32
110.00 9.32 9.90 28.07 21.75 21.44 0.00 8.46 0.00 5.85 104.85 -5.52
120.00 12.02 10.80 23.59 21.75 21.44 0.00 8.46 0.00 5.85 106.77 -2.70
130.00 14.72 11.70 19.11 21.75 21.44 0.00 8.46 0.00 5.85 108.69 -0.12
140.00 17.42 12.60 14.63 21.75 21.44 0.00 8.46 0.00 5.85 110.61 +2.33
150.00 20.12 13.50 10.15 21.75 21.44 0.00 8.46 0.00 5.85 112.53 +2.51
160.00 22.82 14.40 5.67 21.75 21.44 0.00 8.46 0.00 5.85 114.45 +0.57
170.00 25.52 15.30 1.19 21.75 21.44 0.00 8.46 0.00 5.85 116.37 +1.19

Old benefit system at hypothetical rates April 1988
Leicester L.A.
Single Person with 2 children aged 4 and 6
Earnings head Tax NI FIS Child benefit Rent Rent rebate Rates 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 21.44 17.05 8.46 5.47 5.85 2.55 1.83 96.25
70.00 0.00 4.90 23.70 19.40 21.44 15.80 8.46 5.07 5.85 2.55 1.83 97.70
80.00 1.22 5.60 18.70 19.40 21.44 14.55 8.46 4.67 5.85 2.55 1.83 99.13
90.00 3.92 6.30 13.70 19.40 21.44 13.30 8.46 4.27 5.85 2.55 1.83 99.08
100.00 6.62 7.00 8.70 19.40 21.44 11.79 8.46 3.71 5.85 2.55 1.83 98.61
110.00 9.32 9.90 3.70 19.40 21.44 10.14 8.46 3.06 5.85 2.55 1.83 95.71
120.00 12.02 10.80 0.00 19.40 21.44 8.06 8.46 2.24 5.85 2.55 0.00 93.68

New benefit system from April 1988
Leicester L.A.
Single person with 2 children aged 4 and 6
Earnings head Tax NI Family credit Child benefit Rent Rent rebate Rates Rate rebate Fares to work Net weekly spending power Difference between systems
60.00 0.00 3.00 40.32 19.40 21.44 0.60 8.46 0.00 5.85 81.57 -14.68
70.00 0.00 4.90 34.65 19.40 21.44 0.00 8.46 0.00 5.85 83.40 -14.30
80.00 1.22 5.60 28.99 19.40 21.44 0.00 8.46 0.00 5.85 85.82 -13.31
90.00 3.92 6.30 24.37 19.40 21.44 0.00 8.46 0.00 5.85 87.80 -11.28
100.00 6.62 7.00 19.75 19.40 21.44 0.00 8.46 0.00 5.85 89.78 -8.83
110.00 9.32 9.90 16.67 19.40 21.44 0.00 8.46 0.00 5.85 91.10 -4.61
120.00 12.02 10.80 12.19 19.40 21.44 0.00 8.46 0.00 5.85 93.02 -0.66

Old tax and benefit system—assuming average local authority rent and rates for Leicester and a simple rescaling of April 1987 benefits to April 1988.
Lone mother with 2 children aged 4 and 6.
a. Not working-after one year on benefit b. Working part-lime earning £20 c. Working part-time earning £40
Supplementary Benefit 45.93 30.89 14.35
Earnings — 20.00 40.00
Tax — 0.00 0.00
Nat. insurance — 0.00 2.00
Fares to work — 2.92 2.92
Rent 21.44 21.44 21.44
Rates 8.46 8.46 8.46
Housing benefit 28.32 28.32 28.32
CHB 19.40 19.40 19.40
FSM 2.55 2.55 2.55
FWM 1.83 1.83 1.83
Net weekly spending power 68.13 70.17 71.63

(a) Not working after one year on benefit
Benefit system from April 1988
Assumptions as in "Impact of reformed structure of income related benefits" October 1987
Average rent and rates for Leicester local authority Lone mother with two children aged 4 and 6
£
Income support 45.35
Rent 21.44
Rates 8.46
Housing benefit 26.94
CHB 19.40
FSM 2.55
FWM 1.83
Net weekly spending power 66.17
Difference between systems -1.96

b. Working part time—earning £20 c. Working part lime—earning £40
Income Support 40.35 20.35
Earnings 20.00 40.00
Tax 0.00 0.00
NI 0.00 0.00
Fares to work 2.92 2.92
Rent 21.44 21.44
Rates 8.46 4.86
Housing Benefit 26.94 26.94
CHB 19.40 19.40
FSM 2.55 2.55
FWM 1.83 1.83
Net weekly spending power 78.25 78.25
Difference between systems +8.08 +8.08