§ Miss WiddecombeTo ask the Secretary of State for Social Services what proportions of those working families who are eligible for family credit are(a) tenants paying rent, (b) mortgagors, (c) outright owner-occupiers and (d) non-householders; and if he will illustrate the effect on net weekly spending power of introducing the reformed structure of income-related benefits for the following categories (i) a married couple with one earner and two children aged 13 and 16 years and (ii) a married couple with one earner and three children aged three, eight and 11 years, assuming, where appropriate, that the families (A) pay average local authority rent and rates, (B) have a £13,000 outstanding mortgage and pay appropriate weekly mortgage interest, (C) own their own home outright and pay average local authority rates and (D) are non-householders and pay no rent, mortgage interest, or rates, in each example showing both current and post-reform net weekly spending power, and any change between the two, for earnings ranging from £70 to £200 in £10 steps.
§ Mr. PortilloThe tenure composition of the family credit eligible population is as shown:
Family credit eligible population tenure Per cent. Rent paying tenants 50 Mortgagors 38 Outright owners 8 Non-Householders 4 Total 100 The information on net weekly spending power is provided in the tables. Overall two thirds of family credit recipients are expected to gain or be unaffected.
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Table 1 Married couple, one earner—2 children aged 13 and 16 Average local authority rent and rates 1988–89 Net weekly spending power £ Gross earnings Pre-reform Post-reform Increase (+)/Decrease (-) 70 96.55 97.65 +1.10 80 97.98 98.00 +0.02 90 97.93 98.39 +0.46 100 97.88 99.86 +1.98 110 94.98 101.18 +6.20 120 94.08 103.10 +9.02 130 95.66 105.02 +9.36 140 94.91 106.94 +12.03 150 96.11 108.86 +12.75 160 102.51 110.78 +8.27
Gross earnings Pre-reform Post-reform Increase (+)/Decrease (-) 170 108.91 112.70 +3.79 180 115.31 115.31 — 190 121.71 121.71 — 200 128.11 128.11 —
Table 2 Married couple, one earner—2 children aged 13 and 16 £13,000 mortgage, average local authority rates Net weekly spending power £ Gross Earnings Pre-reform Post-reform Increase ( + )/Decrease ( - ) 70 — — — 80 — — — 90 — — — 100 86.67 100.11 +13.44 110 85.42 101.43 +16.01 120 86.17 103.35 +17.18 130 90.92 105.27 +14.35 140 96.02 107.19 +11.17 150 96.36 109.11 +12.75 160 102.76 111.03 +8.27 170 109.16 112.95 +3.79 180 115.56 115.56 — 190 121.96 121.96 — 200 128.36 128.36 — Note:
Below £100 gross weekly earnings a borrower would be unlikely to get a £13,000 mortgage.
Table 3 Married couple, one earner—2 children aged 13 and 16 outright owner, average local authority rates Net weekly spending power £ Gross Earnings Pre-reform Post-reform Increase ( + )/Decrease ( - ) 70 100.46 113.99 +13.53 80 103.14 115.92 +12.78 90 104.34 117.51 +13.17 100 105.54 118.98 +13.44 110 104.29 120.30 +16.01 120 105.04 122.22 +17.18 130 104.69 124.14 +19.45 140 109.79 126.06 +16.27 150 115.23 127.98 +12.75 160 121.63 129.90 +8.27 170 128.03 131.82 +3.79 180 134.43 134.43 — 190 140.83 140.83 — 200 147.23 147.23 —
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Table 4 Married couple, one earner—2 children aged 13 and 16 Non-householder: No rent, mortgage or rates Net weekly spending power £ Gross Earnings Pre-Reform Post-Reform Increase ( + )-Decrease (- ) 70 104.25 122.40 +18.15 80 107.33 124.82 +17.49 90 108.93 126.80 +17.87 100 110.53 128.78 +18.25 110 109.93 130.10 +20.17 120 111.33 132.02 +20.69 130 112.23 133.94 +21.71 140 118.63 135.86 +17.23 150 125.03 137.78 +12.75 160 131.43 139.70 +8.27 170 137.83 141.62 +3.79 180 144.23 144.23 — 190 150.63 150.63 — 200 157.03 157.03 —
Table 5 Married couple,.one earner—3 children aged 3, 8 and 11 Average local authority rent and rates Net weekly spending power £ Gross Earnings Pre-Reform Post-Reform Increase( + )-Decrease ( -) 70 111.80 100.13 -11.67 80 113.23 100.55 -12.68 90 113.18 102.53 -10.65 100 113.13 104.51 -8.62 110 110.65 105.83 -4.82 120 109.75 107.75 -2.00 130 108.85 109.67 +0.82 140 108.54 111.59 +3.05 150 110.34 113.51 +3.17 160 112.31 115.43 +3.12 170 116.16 117.35 +1.19 180 122.56 122.56 — 190 128.96 128.96 — 200 135.36 135.36 —
Table 6 Married couple, one earner—3 children aged 3, 8 and 11 £13,000 mortgage, average local authority rates Net weekly spending power £ Gross Earnings Pre-Reform Post-Reform Increase ( + )/Decrease ( - ) 70 — — — 80 — — — 90 — — — 100 101.11 104.76 +3.65 110 100.02 106.08 +6.06 120 100.77 108.00 +7.23 130 101.52 109.92 +8 40 140 104.35 111.84 +7.49 150 109.45 113.76 +4.31 160 112.56 115.68 +312 170 116.41 117.60 +1.19 180 122.81 122.81 — 190 129.21 129.21 — 200 135.61 135.61 — Note: Below £100 gross weekly earnings a borrower would be unlikely to get a £13,000 mortgage.
Table 7 Married couple, one earner—3 children aged 3, 8 and 11 Outright owner, average local authority rates Net weekly spending power £ Gross earnings Pre-reform Post-reform Increase ( + )/Decrease ( - ) 70 114.90 118.13 -3.23 80 117.58 119.67 +2.09 90 118.78 121.65 +2.87 100 119.98 123.63 +3.65 110 118.89 124.95 +6.06 120 119.64 126.87 +7.23 130 120.39 128.79 +8.40 140 118.12 130.71 +12.59 150 123.22 132.63 +9.41 160 128.88 134.55 +5.67 170 135.28 136.47 +1.19 180 141.68 141.68 — 190 148.08 148.08 — 200 154.48 154.48 —
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Table 8 Married couple, one earner—3 children aged 3, 8 and 11 Non-householder: No rent, mortgage or rates Net weekly spending power £ Gross Earnings Pre-Reform Post-Reform Increase ( + )/Decrease ( - ) 70 118.43 127.05 +8.62 80 121.51 129.47 +7.96 90 123.11 131.45 +8.34
Net weekly spending power £ Gross Earnings Pre-Reform Post-Reform Increase ( + )/Decrease ( - ) 100 124.71 133.43 +8.72 110 124.11 134.75 +10.64 120 125.51 136.67 +11.16 130 126.91 138.59 +11.68 140 125.88 140.51 +14.63 150 132.28 142.43 +10.15 160 138.68 144.35 +5.67 170 145.08 146.27 +1.19 180 151.48 151.48 — 190 157.88 157.88 — 200 164.28 164.28 — Notes to tables:
1. All main assumptions as in "Impact of the Reformed Structure of Income Related Benefits", October 1987, copies of which are held in the Library.
2. Net weekly spending power is defined after payment of income tax and national insurance, receipt of benefits, payment of net housing costs and work-related expenses (travel costs).
3. Average weekly local authority rents for these family types are assumed to be £19.12, local authority rates £8.02, water rates £1.78. A £13,000 mortgage is assumed to imply a net (after tax) mortgage interest payment of £18.87 per week.