HC Deb 15 December 1989 vol 163 cc855-6W
Ms. Harman

To ask the Secretary of State for Social Security if he will publish a table showing child benefit expenditure broken down into(a) gross income bands, (b) gross equivalent income bands and (c) net equivalent income bands, showing the number of children falling into each band.

Mr. Scott

[holding answer 24 November 1989]: Information about the income of families receiving child benefit is not routinely collected. The following figures relating to the distribution of gross and net income are made on the basis of sample survey data which are subject to normal sampling and response variations. The equivalised income bands shown in the tables do not necessarily reflect the actual incomes of couples with children; they represent their incomes equivalised to the incomes of couples without children. Tables (b) and (c) do not therefore show the number of children falling within actual income bands for couples with children since their actual incomes will generally be higher than the equivalised amounts shown. Thus, for a married couple with two children aged nine and 11, the actual income is likely to be 150 per cent. of the equivalised amount and for a married couple with three children aged nine, 11 and 13, 175 per cent. of the equivalised amount.

(a) Gross Income
Income bands £ Number of children (000s) Child benefit expenditure (£ million)
Under 5,000 490 185
5–10,000 3,340 1,260
10–15,000 2,625 990
15–20,000 2,520 950
20,000 and above 3,035 1,145
Total 12,005 4,525

(b) Equivalised gross income
Income bands £ Number of children (000s) Child benefit expenditure (£ million)
Under 5,000 1,845 695
5–10,000 4,325 1,630
10–15,000 3,195 1,205
15–20,000 1,505 565
20,000 and above 1,130 425
Total 12,005 4,525

(c) Equivalised net income
Income bands £ Number of children (000s) Child benefit expenditure (£ million)
Under 5,000 2,145 810
5–10,000 5,950 2,245
10–15,000 2,600 980
15–20,000 860 325
20,000 and above 450 165
Total 12,005 4,525

Notes:

1. Estimates do not sum due to rounding.

2. Estimates are based on the 1985 and 1986 FES uprated to 1989–90 earnings and benefit levels.

3. Gross income is the family's total income from all sources including benefits.

4. Equivalence scales are calculated giving a married couple a value of 1.00.