Spending Power

HC Deb 08 March 1988 vol 129 cc181-9W

Mr. Ralph Howell

To ask the Secretary of State for Social Services if he will publish tables similar to his Department's tax/benefit model table showing the net weekly spending power for each of(a) a single person, (b) a married couple with no children, (c) a couple with a child aged 11 years, (d) a couple with two children aged eight and 11 years, (e) a couple with three children aged eight, 11 and 15 years and (f) a couple with four children aged three, eight, 11 and 15 years, with weekly earnings of (i) £60, (ii) £70, (iii) £80, (iv) £90, (v) £110, (vi) £120,

Existing tax and benefit system.Single person Income and means tested benefits Family head in full-time work
Tex threshold: £48.17
Earnings head	Tax	National insurance	Family income supplement	Child benefit	Rent	Rent rebate	Rates	Rate rebate	Fares to work	Free school meals	Free welfare milk	Net weekly spending power
60.00	3.19	3.00	0.00	0.00	15.94	11.99	8.45	4.78	5.85	0.00	0.00	40.34
70.00	5.89	4.90	0.00	0.00	15.94	9.47	8.45	3.96	5.85	0.00	0.00	42.40
80.00	8.59	5.60	0.00	0.00	15.94	6.17	8.45	2.66	5.85	0.00	0.00	44.40
90.00	11.29	6.30	0.00	0.00	15.94	2.87	8.45	1.36	5.85	0.00	0.00	46.40
110.00	16.69	9.90	0.00	0.00	15.94	0.00	8.45	0.00	5.85	0.00	0.00	53.17
120.00	19.39	10.80	0.00	0.00	15.94	0.00	8.45	0.00	5.85	0.00	0.00	59.57
130.00	22.09	11.70	0.00	0.00	15.94	0.00	8.45	0.00	5.85	0.00	0.00	65.97
140.00	24.79	12.60	0.00	0.00	15.94	0.00	8.45	0.00	5.85	0.00	0.00	72.37
150.00	27.49	13.50	0.00	0.00	15.94	0.00	8.45	0.00	5.85	0.00	0.00	78.77
160.00	30.19	14.40	0.00	0.00	15.94	0.00	8.45	0.00	5.85	0.00	0.00	85.17
170.00	32.89	15.30	0.00	0.00	15.94	0.00	8.45	0.00	5.85	0.00	0.00	91.57

New System from April 1988 Single Person Income and means tested benefits Family head in full-time work
Tax threshold: £48.17
Earnings head	Tax	NI	Family credit	Child benefit	Rent	Rent rebate	Rates	Rate rebate	Fares to work	Net Weekly spending power
60.00	3.19	3.00	0.00	0.00	15.94	5.93	8.45	2.25	5.85	31.75
70.00	5.89	4.90	0.00	0.00	15.94	2.42	8.45	1.17	5.85	32.56
80.00	8.59	5.60	0.00	0.00	15.94	0.00	8.45	0.00	5.85	35.57
90.00	11.29	6.30	0.00	0.00	15.94	0.00	8.45	0.00	5.85	42.17
110.00	16.69	9.90	0.00	0.00	15.94	0.00	8.45	0.00	5.85	53.17
120.00	19.39	10.80	0.00	0.00	15.94	0.00	8.45	0.00	5.85	59.57
130.00	22.09	11.70	0.00	0.00	15.94	0.00	8.45	0.00	5.85	65.97
140.00	24.79	12.60	0.00	0.00	15.94	0.00	8.45	0.00	5.85	72.37
150.00	27.49	13.50	0.00	0.00	15.94	0.00	8.45	0.00	5.85	78.77
160.00	30.19	14.40	0.00	0.00	15.94	0.00	8.45	0.00	5.85	85.17
170.00	32.89	15.30	0.00	0.00	15.94	0.00	8.45	0.00	5.85	91.57

Existing tax and benefit system: Married Couple Income and means tested benefits Family head in full-time work
Tax threshold: £75.48
Earnings head	Tax	NI	FIS	Child benefit	Rent	Rent rebate	Rates	Rent rebate	Fares to work	Free school meals	Free welfare milk	net weekly spending power
60.00	0.00	3.00	0.00	0.00	15.94	15.94	8.45	6.67	5.85	0.00	0.00	49.37
70.00	0.00	4.90	0.00	0.00	15.94	15.48	8.45	5.89	5.85	0.00	0.00	56.23

(vii) £130, (viii) £140, (ix) £150, (x) £160 and (xi) £170 under (a) the existing tax and benefit system and (b) the new system to be implemented in April.

Mr. Scott

The information requested is set out in the tables. It should he noted that the results are hypothetical in two senses. First, the results are based on average local authority rents and rates and do not present a balanced picture reflecting peoples actual family circumstances and housing arrangements. For example, larger families composed of older children are not included. Similarly, mortgagors, outright owners and non-householders are excluded. A half of the family credit recipient population are unlikely to be rent payers. Second, the other assumptions used are those set out in "Impact of the Reformed Structure of Income-Related Benefits", October 1987.

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
80.00	1.22	5.60	0.000	0.00	15.94	12.98	20.14	8.45	20.14	5.09	5.85	61.01
90.00	3.92	6.30	0.00	0.00	15.94	10.48	8.45	4.29	5.85	0.00	0.00	64.31
110.00	9.32	9.90	0.00	0.00	15.94	4.17	8.45	1.88	5.85	0.00	0.00	66.59
120.00	12.02	10.80	0.00	0.00	15.94	0.87	8.45	0.58	5.85	0.00	0.00	68.39
130.00	14.72	11.70	0.00	0.00	15.94	0.00	8.45	0.00	5.85	0.00	0.00	73.34
140.00	17.42	12.60	0.00	0.00	15.94	0.00	8.45	0.00	5.85	0.00	0.00	79.74
150.00	20.12	13.50	0.00	0.00	15.94	0.00	8.45	0.00	5.85	0.00	0.00	86.14
160.00	22.82	14.40	0.00	0.00	15.94	0.00	8.45	0.00	5.85	0.00	0.00	92.54
170.00	25.52	15.30	0.00	0.00	15.94	0.00	8.45	0.00	5.85	0.00	0.00	98.94

New system from April 1988 Married couple Income and means tested benefits family head in full-time work
Tax threshold: £75.48
Earnings head	Tax	NI	Family credit	Child benefit	Rent	Rent rebate	Rates	Rate rebate	Fares to work	Net weekly spending power
60.00	0.00	3.00	0.00	0.00	15.94	15.94	8.45	5.34	5.85	48.04
70.00	0.00	4.90	0.00	0.00	15.94	13.57	8.45	4.61	5.85	53.04
80.00	1.22	5.60	0.00	0.00	15.94	8.32	8.45	2.99	5.85	54.25
90.00	3.92	6.30	0.00	0.00	15.94	4.03	8.45	1.67	5.85	55.24
110.00	9.32	9.90	0.00	0.00	15.94	0.00	8.45	0.00	5.85	60.54
120.00	12.02	10.80	0.00	0.00	15.94	0.00	8.45	0.00	5.85	66.94
130.00	14.72	11.70	0.00	0.00	15.94	0.00	8.45	0.00	5.85	73.34
140.00	17.42	12.60	0.00	0.00	15.94	0.00	8.45	0.00	5.85	79.74
150.00	20.12	13.50	0.00	0.00	15.94	0.00	8.45	0.00	5.85	86.14
160.00	22.82	14.40	0.00	0.00	15.94	0.00	8.45	0.00	5.85	92.54
170.00	25.52	15.30	0.00	0.00	15.94	0.00	8.45	0.00	5.85	98.94

Existing tax and benefit system: Married couple with one child aged 11 Income and means tested benefits Family head in full-time work
Tax threshold: £75.48
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	29.30	7.25	17.82	13.87	9.28	5.52	5.85	2.55	0.00	82.54
70.00	0.00	4.90	24.30	7.25	17.82	12.62	9.28	5.12	5.85	2.55	0.00	83.99
80.00	1.22	5.60	19.30	7.25	17.82	11.37	9.28	4.72	5.85	2.55	0.00	85.42
90.00	3.92	6.30	14.30	7.25	17.82	9.93	9.28	4.20	5.85	2.55	0.00	85.06
110.00	9.32	9.90	4.30	7.25	17.82	6.63	9.28	2.90	5.85	2.55	0.00	81.46
Mandatory provision of free school meals ceases
120.00	12.02	10.80	0.00	7.25	17.82	4.75	9.28	2.16	5.85	0.00	0.00	78.39
130.00	14.72	11.70	0.00	7.25	17.82	1.45	9.28	0.86	5.85	0.00	0.00	80.19
140.00	17.42	12.60	0.00	7.25	17.82	0.00	9.28	0.00	5.85	0.00	0.00	84.28
150.00	20.12	13.50	0.00	7.25	17.82	0.00	9.28	0.00	5.85	0.00	0.00	90.68
160.00	22.82	14.40	0.00	7.25	17.82	0.00	9.28	0.00	5.85	0.00	0.00	97.08
170.00	25.52	15.30	0.00	7.25	17.82	0.00	9.28	0.00	5.85	0.00	0.00	103.48

New System from April 1988 Married couple with one child aged 11 Income and means tested benefits Family head in full-time work
Tax threshold: £75.48
Earnings head	Tax	NI	Family credit	Child benefit	Rent	Rent rebate	Rates	Rate rebate	Fares to work	Net weekly spending power
60.00	0.00	3.00	39.62	7.25	17.82	4.71	9.28	1.97	5.85	77.60
70.00	0.00	4.90	33.95	7.25	17.82	3.13	9.28	1.48	5.85	77.96
80.00	1.22	5.60	28.29	7.25	17.82	1.56	9.28	1.00	5.85	78.33
90.00	3.92	6.30	23.67	7.25	17.82	0.00	9.28	0.60	5.85	78.35
110.00	9.32	9.90	15.97	7.25	17.82	0.00	9.28	0.00	5.85	81.05
120.00	12.02	10.80	11.49	7.25	17.82	0.00	9.28	0.00	5.85	82.97

Earnings head	Tax	NI	Family Child	Child benefit	Rent	Rent rebate	Rates	Rate rebate	Fares to work	Net weekly spending power
130.00	14.72	11.70	7.01	7.25	17.82	0.00	9.28	0.00	5.85	84.89
140.00	17.42	12.60	2.53	7.25	17.82	0.00	9.28	0.00	5.85	86.81
150.00	20.12	13.50	0.00	7.25	17.82	0.00	9.28	0.00	5.85	90.68
160.00	22.82	14.40	0.00	7.25	17.82	0.00	9.28	0.00	5.85	97.08
170.00	25.52	15.30	0.00	7.25	17.82	0.00	9.28	0.00	5.85	103.48

Existing tax and benefit system: Married couple with two children aged 8 and 11 Income and means tested benefits Family head in full-time work
Tax threshold: .75.48
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	35.50	14.50	19.12	15.18	9.80	6.00	5.85	5.10	0.00	98.51
70.00	0.00	4.90	30.50	14.50	19.12	13.93	9.80	5.60	5.85	5.10	0.00	99.96
80.00	1.22	5.60	25.50	14.50	19.12	12.68	9.80	5.20	5.85	5.10	0.00	101.39
90.00	3.92	6.30	20.50	14.50	19.12	11.42	9.80	4.79	5.85	5.10	0.00	101.32
110.00	9.32	9.90	10.50	14.50	19.12	8.12	9.80	3.49	5.85	5.10	0.00	97.72
120.00	12.02	10.80	5.50	14.50	19.12	6.47	9.80	2.84	5.85	5.10	0.00	96.82
130.00	14.72	11.70	0.50	14.50	19.12	4.82	9.80	2.19	5.85	5.10	0.00	95.92
Mandatory provision of free school meals ceases
140.00	17.42	12.60	0.00	14.50	19.12	1.69	9.80	0.96	5.85	2.55	0.00	94.91
150.00	20.12	13.50	0.00	14.50	19.12	0.00	9.80	0.00	5.85	0.00	0.00	96.11
160.00	22.82	14.40	0.00	14.50	19.12	0.00	9.80	0.00	5.85	0.00	0.00	102.51
170.00	25.52	15.30	0.00	14.50	19.12	0.00	9.80	0.00	5.85	0.00	0.00	108.91

New system from April 1988: Married couple with two children aged 8 and 11 Income and means tested benefits Family head in full-time work
Tax threshold: £75.48
Earnings head	Tax	NI	Family credit	Child benefit	Rent	Rent rebate	Rates	Rate rebate	Fares to work	Net weekly spending power
60.00	0.00	3.00	45.67	14.50	19.12	4.36	9.80	1.87	5.85	88.63
70.00	0.00	4.90	40.00	14.50	19.12	2.78	9.80	1.39	5.85	89.00
80.00	1.22	5.60	34.34	14.50	19.12	1.20	9.80	0.90	5.85	89.35
90.00	3.92	6.30	29.72	14.50	19.12	0.00	9.80	0.51	5.85	89.74
110.00	9.32	9.90	22.02	14.50	19.12	0.00	9.80	0.00	5.85	92.53
120.00	12.02	10.80	17.54	14.50	19.12	0.00	9.80	0.00	5.85	94.45
130.00	14.72	11.70	13.06	14.50	19.12	0.00	9.80	0.00	5.85	96.37
140.00	17.42	12.60	8.58	14.50	19.12	0.00	9.80	0.00	5.85	98.29
150.00	20.12	13.50	4.10	14.50	19.12	0.00	9.80	0.00	5.85	100.21
160.00	22.82	14.40	0.00	14.50	19.12	0.00	9.80	0.00	5.85	102.51
170.00	25.52	15.30	0.00	14.50	19.12	0.00	9.80	0.00	5.85	108.91

Existing tax and benefit system: Married couple with three children aged 8, 11 and 15 Income and means tested benefits Family head in full-time work
Tax threshold: £75.48
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	48.40	21.75	19.12	14.05	9.80	5.64	5.85	7.65	0.00	119.72
70.00	0.00	4.90	43.40	21.75	19.12	12.80	9.80	5.24	5.85	7.65	0.00	121.17
80.00	1.22	5.60	38.40	21.75	19.12	11.55	9.80	4.84	5.85	7.65	0.00	122.60
90.00	3.92	6.30	33.40	21.75	19.12	9.92	9.80	4.20	5.85	7.65	0.00	121.93
110.00	9.32	9.90	23.40	21.75	19.12	6.62	9.80	2.90	5.85	7.65	0.00	118.33
120.00	12.02	10.80	18.40	21.75	19.12	4.97	9.80	2.25	5.85	7.65	0.00	117.43
130.00	14.72	11.70	13.40	21.75	19.12	3.32	9.80	1.60	5.85	7.65	0.00	116.53
140.00	17.42	12.60	8.40	21.75	19.12	1.67	9.80	0.95	5.85	7.65	0.00	115.63

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
150.00	20.12	13.50	3.40	21.75	19.12	0.00	9.80	0.00	5.85	7.65	0.00	114.41
Mandatory provision of free school meals ceases
160.00	22.82	14.40	0.00	21.75	19.12	0.00	9.80	0.00	5.85	2.55	0.00	112.31
170.00	25.52	15.30	0.00	21.75	19.12	0.00	9.80	0.00	5.85	0.00	0.00	116.16

New system from April 1988: Married couple with three children aged 8, 11 and 15 Income and means tested benefits Family head in full-time work
Tax threshold: £75.48
Earnings head	Tax	NI	Family credit	Child benefit	Rent	Rent rebate	Rates	Rate rebate	Fares to work	Net weekly spending power
60.00	0.00	3.00	57.07	21.75	19.12	2.70	9.80	1.36	5.85	105.11
70.00	0.00	4.90	51.40	21.75	19.12	1.12	9.80	0.88	5.85	105.48
80.00	1.22	5.60	45.74	21.75	19.12	0.00	9.80	0.00	5.85	105.90
90.00	3.92	6.30	41.12	21.75	19.12	0.00	9.80	0.00	5.85	107.88
110.00	9.32	9.90	33.42	21.75	19.12	0.00	9.80	0.00	5.85	111.18
120.00	12.02	10.80	28.94	21.75	19.12	0.00	9.80	0.00	5.85	113.10
130.00	14.72	11.70	24.46	21.75	19.12	0.00	9.80	0.00	5.85	115.02
140.00	17.42	12.60	19.98	21.75	19.12	0.00	9.80	0.00	5.85	116.94
150.00	20.12	13.50	15.50	21.75	19.12	0.00	9.80	0.00	5.85	118.86
160.00	22.82	14.40	11.02	21.75	19.12	0.00	9.80	0.00	5.85	120.78
170.00	25.52	15.30	6.54	21.75	19.12	0.00	9.80	0.00	5.85	122.70

Existing tax and benefit system: Married couple with four children aged 3, 8, 11 and 15 Income and means tested benefits Family head in full.time work
Tax threshold: £75.48
Earnings head	Tax	NI	FIS	Child benefit	Rent	Rent rebate	Rates	Rale rebate	Fares to work	Free school meals	Free Welfare milk	Net weekly spending power
60.00	0.00	3.00	54.60	29.00	19.12	14.58	9.80	5.81	5.85	7.65	1.83	135.70
70.00	0.00	4.90	49.60	29.00	19.12	13.33	9.80	5.41	5.85	7.65	1.83	137.15
80.00	1.22	5.60	44.60	29.00	19.12	12.08	9.80	5.01	5.85	7.65	1.83	138.58
90.00	3.92	6.30	39.60	29.00	19.12	10.63	9.80	4.48	5.85	7.65	1.83	138.20
110.00	9.32	9.90	29.60	29.00	19.12	7.33	9.80	3.18	5.85	7.65	1.83	134.60
120.00	12.02	10.80	24.60	29.00	19.12	5.68	9.80	2.53	5.85	7.65	1.83	133.70
130.00	14.72	11.70	29.60	29.00	19.12	4.03	9.80	1.88	5.85	7.65	1.83	132.80
140.00	17.42	12.60	14.60	19.00	19.12	2.38	9.80	1.23	5.85	7.65	1.83	131.90
150.00	20.12	13.50	9.60	29.00	19.12	0.73	9.80	0.58	5.85	7.65	1.83	131.00
160.00	22.82	14.40	4.60	29.00	19.12	0.00	9.80	0.00	5.85	7.65	1.83	131.09
Mandatory provision of free school meals ceases
170.00	25.52	15.30	0.00	29.00	19.12	0.00	9.80	0.00	5.85	5.10	0.00	128.51

New system from April 1988: Married couple with four children aged 3,8, 11 and 15. Income and means tested benefits Family head in full-time work
Tax threshold: £75.48
Earnings head	Tax	NI	Family credit	Child benefit	Rent	Rent rebate	Rates	Rate rebate	Fares to work	Net weekly spending power
60.00	0.00	3.00	6312	29.00	19.12	1.04	9.80	0.85	5.85	116.24
70.00	0.00	4.90	57.45	29.00	19.12	0.00	9.80	0.00	5.85	116.78
80.00	1.22	5.60	51.79	29.00	19.12	0.00	9.80	0.00	5.85	119.20
90.00	3.92	6.30	47.17	29.00	19.12	0.00	9.80	0.00	5.85	121.18
110.00	9.32	9.90	39.47	29.00	19.12	0.00	9.80	0.00	5.85	124.48
120.00	12.02	10.80	34.99	29.00	19.12	0.00	9.80	0.00	5.85	126.40
130.00	14.72	11.70	30.51	29.00	19.12	0.00	9.80	0.00	5.85	128.32
140.00	17.42	12.60	26.03	29.00	19.12	0.00	9.80	0.00	5.85	130.24

Earnings head	Tax	NI	Family credit	Child benefit	Rent	Rent rebate	Rates	Rate rebate	Fares to work	Net weekly spending power
150.00	20.12	13.50	21.55	29.00	19.12	0.00	9.80	0.00	5.85	132.16
160.00	22.82	14.40	17.07	29.00	19.12	0.00	9.80	0.00	5.85	134.08
170.00	25.52	15.30	12.59	29.00	19.12	0.00	9.80	0.00	5.85	136.00