HC Deb 22 June 1988 vol 135 cc571-5W
Mr. Madden

To ask the Secretary of State for Social Services if he will publish tables using the assumptions in his answer to the then hon. Member for Kensington of 4 February,Official Report, column 737, but using expenditure and benefit figures appropriate for families in Bradford for which he has sufficient data, and with an additional column showing the extent of the differences that will result from the changes in benefit in April.

Mr. Scott

[holding answer 14 June 1988]: The information requested is set out in the tables. It should be

Old benefit system at hypothetical rates April 1988
Bradford Local Authority
Married couple with two children aged four and six
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 14.50 19.98 17.40 8.62 5.87 5.85 2.55 1.83 93.40
70.00 0.00 4.90 23.70 14.50 19.98 16.15 8.62 5.47 5.85 2.55 1.83 94.85
80.00 1.22 5.60 18.70 14.50 19.98 14.90 8.62 5.07 5.85 2.55 1.83 96.28
90.00 3.92 6.30 13.70 14.50 19.98 13.65 8.62 4.67 5.85 2.55 1.83 96.23
100.00 6.62 7.00 8.70 14.50 19.98 12.40 8.62 4.27 5.85 2.55 1.83 96.18
110.00 9.32 9.90 3.70 14.50 19.98 10.88 8.62 3.70 5.85 2.55 1.83 93.49
120.00 12.02 10.80 0.00 14.50 19.98 8.80 8.62 2.89 5.85 2.55 0.00 91.47
130.00 14.72 11.70 0.00 14.50 19.98 5.50 8.62 1.59 5.85 2.55 0.00 93.27
140.00 17.42 12.60 0.00 14.50 19.98 2.20 8.62 0.00 5.85 2.55 0.00 94.78
150.00 20.12 13.50 0.00 14.50 19.98 0.00 8.62 0.00 5.85 0.00 0.00 96.43
160.00 22.82 14.40 0.00 14.50 19.98 0.00 8.62 0.00 5.85 0.00 0.00 102.83
170.00 25.52 15.30 0.00 14.50 19.98 0.00 8.62 0.00 5.85 0.00 0.00 109.23

New benefit system from April 1988
Bradford local authority
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 19.98 5.22 8.62 0.98 5.85 83.57 -9.83
70.00 0.00 4.90 34.65 14.50 19.98 3.64 8.62 0.00 5.85 83.44 -11.41

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 Reform Structure of Income Related Benefits" (October 1987). Second, the comparisons are based on average local authority housing charges in Bradford 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 the 27 April.

Earnings head Tax NI Family credit Child benefit Rent Rent rebate Rates Rate rebate Fares to work Net weekly spending power Difference between systems
80.00 1.22 5.60 28.99 14.50 19.98 2.06 8.62 0.00 5.85 84.28 -12.00
90.00 3.92 6.30 24.37 14.50 19.98 0.77 8.62 0.00 5.85 84.97 -11.26
100.00 6.62 7.00 19.75 14.50 19.98 0.00 8.62 0.00 5.85 86.18 -10.00
110.00 9.32 9.90 16.67 14.50 19.98 0.00 8.62 0.00 5.85 87.50 -5.99
120.00 12.02 10.80 12.19 14.50 19.98 0.00 8.62 0.00 5.85 89.42 -2.05
130.00 14.72 11.70 7.71 14.50 19.98 0.00 8.62 0.00 5.85 91.34 -1.93
140.00 17.42 12.60 3.23 14.50 19.98 0.00 8.62 0.00 5.85 93.26 -1.52
150.00 20.12 13.50 0.00 14.50 19.98 0.00 8.62 0.00 5.85 93.26 0.00
160.00 22.82 14.40 0.00 14.50 19.98 0.00 8.62 0.00 5.85 102.83 0.00
170.00 25.52 15.30 0.00 14.50 19.98 0.00 8.62 0.00 5.85 109.23 0.00

Old benefit system at hypothetical rates April 1988
Bradford Local Authority
Married couple with 3 children aged 3, 8 and II
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 19.98 18.44 8.62 6.20 5.85 5.10 1.83 108.77
70.00 0.00 4.90 30.50 21.75 19.98 16.54 8.62 5.60 5.85 5.10 1.83 111.97
80.00 1.22 5.60 25.50 21.75 19.98 15.29 8.62 5.20 5.85 5.10 1.83 113.40
90.00 3.92 6.30 20.50 21.75 19.98 14.04 8.62 4.80 5.85 5.10 1.83 113.35
100.00 6.62 7.00 15.50 21.75 19.98 12.79 8.62 4.40 5.85 5.10 1.83 113.30
110.00 9.32 9.90 10.50 21.75 19.98 11.39 8.62 3.91 5.85 5.10 1.83 110.81
120.00 12.02 10.80 5.50 21.75 19.98 9.74 8.62 3.26 5.85 5.10 1.83 109.91
130.00 14.72 11.70 0.50 21.75 19.98 8.09 8.62 2.61 5.85 5.10 1.83 109.01
140.00 17.42 12.60 0.00 21.75 19.98 4.96 8.62 1.37 5.85 5.10 0.00 108.71
150.00 20.12 13.50 0.00 21.75 19.98 1.66 8.62 0.00 5.85 5.10 0.00 110.44
160.00 22.82 14.40 0.00 21.75 19.98 0.00 8.62 0.00 5.85 2.55 0.00 112.63
170.00 25.52 15.30 0.00 21.75 19.98 0.00 8.62 0.00 5.85 0.00 0.00 116.48

New benefit system from April 1988
Bradford Local Authority
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 19.98 3.56 8.62 0.00 5.85 99.58 -9.19
70.00 0.00 4.90 46.05 21.75 19.98 1.98 8.62 0.00 5.85 100.43 -11.54
80.00 1.22 5.60 40.39 21.75 19.98 0.00 8.62 0.00 5.85 100.87 -12.53
90.00 3.92 6.30 35.77 21.75 19.98 0.00 8.62 0.00 5.85 102.85 -10.50
100.00 6.62 7.00 31.15 21.75 19.98 0.00 8.62 0.00 5.85 104.83 -8.47
110.00 9.32 9.90 28.07 21.75 19.98 0.00 8.62 0.00 5.85 106.15 -4.66
120.00 12.02 10.80 23.59 21.75 19.98 0.00 8.62 0.00 5.85 108.07 -1.84
130.00 14.72 11.70 19.11 21.75 19.98 0.00 8.62 0.00 5.85 109.99 +0.98
140.00 17.42 12.60 14.63 21.75 19.98 0.00 8.62 0.00 5.85 111.91 +3.20
150.00 20.12 13.50 10.15 21.75 19.98 0.00 8.62 0.00 5.85 113.83 +3.39
160.00 22.82 14.40 5.67 21.75 19.98 0.00 8.62 0.00 5.85 115.75 +3.12
170.00 25.52 15.30 1.19 21.75 19.98 0.00 8.62 0.00 5.85 117.67 +1.19

Old benefit system at hypothetical rates April 1988
Bradford Local Authority
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 19.98 16.18 8.62 5.48 5.85 2.55 1.83 96.69
70.00 0.00 4.90 23.70 19.40 19.98 14.93 8.62 5.08 5.85 2.55 1.83 98.14
80.00 1.22 5.60 18.70 19.40 19.98 13.68 8.62 4.68 5.85 2.55 1.83 99.57
90.00 3.92 6.30 13.70 19.40 19.98 12.43 8.62 4.28 5.85 2.55 1.83 99.52
100.00 6.62 7.00 8.70 19.40 19.98 10.92 8.62 3.72 5.85 2.55 1.83 99.05
110.00 9.32 9.90 3.70 19.40 19.98 9.27 8.62 3.07 5.85 2.55 1.83 96.15
120.00 12.02 10.80 0.00 19.40 19.98 7.19 8.62 2.25 5.85 2.55 0.00 94.12

New benefit system from April 1988
Bradford Local Authority
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 19.98 0.00 8.62 0.00 5.85 82.27 -14.42
70.00 0.00 4.90 34.65 19.40 19.98 0.00 8.62 0.00 5.85 84.70 -13.44
80.00 1.22 5.60 28.99 19.40 19.98 0.00 8.62 0.00 5.85 87.12 -12.45
90.00 3.92 6.30 24.37 19.40 19.98 0.00 8.62 0.00 5.85 89.10 -10.42
100.00 6.62 7.00 19.75 19.40 19.98 0.00 8.62 0.00 5.85 91.08 -7.97
110.00 9.32 9.90 16.67 19.40 19.98 0.00 8.62 0.00 5.85 92.40 -3.75
120.00 12.02 10.80 12.19 19.40 19.98 0.00 8.62 0.00 5.85 94.32 +0.20

Old tax and benefit system—assuming average local authority rent and rates for Bradford and a simple reseating 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-time 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 19.98 19.98 19.98
Rates 8.62 8.62 8.62
Housing benefit 26.88 26.88 26.88
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 67.99 70.03 71.49

Benefit system from April 1988 Assumptions as in "Impact of reformed structure of income related benefits" October 1987
Average local authority rent and rates for Bradford Lone mother with two children aged 4 and 6
(a) Not working after one year on benefit £
Income support 45.35
Rent 19.98
Rates 8.62
Housing benefit 25.50
CHB 19.40
FSM 2.55
FWM 1.83
Net weekly spending power 66.03
Difference between systems -1.96

b. Working part lime—earning £20 c. Working part time—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 19.98 19.98
Rates 8.62 8.62
Housing Benefit 25.50 25.50
CHB 19.40 19.40
FSM 2.55 2.55
FWM 1.83 1.83
Net weekly spending power 78.11 78.11
Difference between systems +8.08 +8.08

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