HC Deb 02 February 1989 vol 146 cc358-61W
Mr. Summerson

To ask the Secretary of State for the Environment what a typical ward sister would pay(a) in rates, (b) in community charge and (c) in a system of capital value rates plus local income tax paid in the proportions of 80:20, respectively, if she lived in a typical one-bedroom flat in Walthamstow.

Mr. Gummer

A ward sister earning £15,000, living in a flat in Walthamstow worth £55,000 with a rateable value of £300, would pay a rates bill of £634, a community charge of £269, disregarding the transitional safety net, and £665 under a system of capital value rates plus local income tax.

Mr. Blunkett

To ask the Secretary of State for the Environment if, pursuant to his answer to the hon.

Member for Leeds, West (Mr. Battle), Official Report, 12 January 1989, column 742, updating table F5 of the Green Paper, "Paying for Local Government" (Cmnd. 9714), he will publish a table (a) showing for each band of equivalent net income what percentage of all households fall into that band, and what percentage of adults live in households falling in that band, (b) on the same basis as Table F5 in the Green Paper, but with the bands of equivalent net income adjusted so that 10 percentage of households fall into each band, and showing what

Distribution of household income and community charges in 1988–89
£ per week
Under 75 75–100 100–150 150–200 200–250 250–300 300–350 350–400 400–500 500+
Table A Net Income Range
Pecentage of households in each range 17 11 18 16 13 9 6 4 4 3
Percentage of adults in each range 10 9 16 16 15 11 8 5 6 4
Percentage of households with higher net community charge than net rates falling into each range 10 10 18 19 15 10 7 4 4 2
Table B Equivalent Net Income Range
Percentage of households in each range 7 19 29 18 12 7 4 2 2 1
Percentage of adults in each range 6 17 29 20 13 7 4 2 2 1
Percentage of households with higher net community charge than net rates falling into each range 8 17 32 21 12 5 3 1 1 0

Mr. Battle

To ask the Secretary of State for the Environment (1) if he will publish a table showing the number of gainers and losers and the amount of gain or loss, broken down by family type and net equivalent income hands, from the introduction of the community charge;

(2) if he will publish a table showing the number of (a) couples with children and (b) one-parent families who gain or lose from the introduction of the community charge and how much they gain or lose, broken down into net equivalent income bands.

Impact of the full community charge with no safety nets (England: 1988–89 prices) Thousands of gainers and losers and average gain-loss by household type and range of actual net income
Actual net income range (£pw)
Household types Under 75 75–100 150–250 250+ All
Single pensioner
Number of gainers (000's) 1,740 590 110 1 2,485
Average gain (£pw) 1.01 3.87 6.88 1 2.10
Number of losers (000's) 385 100 1 1 490
Average loss (£pw) 0.42 1.37 1 1 0.63
Other single adult
Number of gainers (000's) 585 1,020 570 170 2,350
Average gain (£pw) 0.95 2.71 4.55 6.09 2.96
Number of losers (000's) 275 365 130 1 795
Average loss (£pw) 0.87 1.86 2.03 1 1.58
Two adults
Number of gainers (000's) 70 1,565 1,885 2,180 5,700

proportion of those households whose net community charge is projected to be higher than their net rates, fall into each income band.

Mr. Gummer

[pursuant to his reply, 30 January 1989]: Table A shows the percentage of households, the percentage of adults, and the percentage of households whose illustrative net community charge for 1988–89 would have been higher than net rates, in each band of net household income. Table B shows the same information in bands of equivalent net household income. Figures on a decile basis are not available.

Mr. Gummer

[pursuant to his reply, 23 January 1989]: The information requested for household and tax unit types is given in the tables below in ranges of equivalent net income and actual net income. The figures have been calculated in the same manner as those I placed in the Library on 15 December exemplifying the distributional impact of the community charge.

The figures show that 83 per cent. of single pensioner households and 75 per cent. of other single adult households would gain from the introduction of the community charge. Similarly 79 per cent. of lone parent families and 57 per cent. of couples with children would gain.

Actual net income range (£pw)
Household types Under 75 75–100 150–250 250+ All
Average gain (£pw) 1.19 1.62 2.67 5.00 3.26
Number of losers (000's) 165 1,730 2,090 865 4,855
Average loss (£pw) 1.03 1.65 2.85 3.02 2.39
Three or more adults
Number of gainers (000's) 100 150 365 615
Average gain (£pw) 2.11 1.97 4.43 3.45
Number of losers (000's) 55 540 1,235 1,825
Average loss (£pw) 1.94 3.89 6.39 5.52

Impact of the full community charge with no safety nets (England: 1988–89 prices) Thousands of gainers and losers and average gain/loss by household type and range of equivalent net income
Household types Equivalent net income range (£pw) All
Under 75 75–150 150–250 250+
Single pensioner
Number of gainers (000's) 205 1,880 265 140 2,485
Average gain (£pw) 0.85 1.41 5.01 7.70 2.10
Number of losers (000's) 80 360 1 1 490
Average loss (£pw) 0.29 0.56 1 1 0.63
Other single adult
Number of gainers (000's) 185 970 620 575 2,350
Average gain (£pw) 0.83 1.70 3.83 4.82 2.96
Number of losers (000's) 85 305 265 135 795
Average loss (£pw) 0.61 1.03 2.22 2.18 1.58
Two adults
Number of gainers (000's) 225 2,220 1,930 1,320 5,700
Average gain (£pw) 1.49 1.89 3.47 5.54 3.26
Number of losers (000's) 415 2,440 1,505 495 4,855
Average loss (£pw) 0.84 2.10 3.04 3.16 2.39
Three or more adults
Number of gainers (000's) 65 220 205 125 615
Average gain (£pw) 2.18 2.13 3.55 6.31 3.45
Number of losers (000's) 1 775 845 165 1,825
Average loss (£pw) 1 4.68 6.28 6.43 5.52

Impact of the full community charge with no safety nets (England: 1988–89 prices) Thousands of gainers and losers and average gain/loss for families with children in ranges of actual net income
Actual net income range (£pw)
Tax unit type Under 75 75–150 150–250 250+ All
(a) Couples with children
Number of gainers (000's) 1 430 1,115 1,310 2,855
Average gain (£pw) 1 1.62 2.63 5.22 3.67
Number of losers (000's) 1 620 1,160 380 2,175
Average loss (£pw) 1 1.58 2.83 2.86 2.47
(b) One parent families
Number of gainers (000's) 85 435 105 1 655
Average gain (£pw) 1.97 1.81 4.97 1 2.61
Number of losers (000's) 80 75 1 1 170
Average loss (£pw) 0.78 1.57 1 1 1.35

Impact of the full community charge with no safety nets (England: 1988–89 prices)
Thousands of gainers and losers and average gain-loss for families with children in ranges of equivalent net income.
Equivalent net income range (£pw)
Tax unit type Under 75 75–150 150–250 250+ All
(a) Couples with children
Number of gainers (000's) 110 1,070 1,190 490 2,855
Average gain (£pw) 1.44 2.24 3.90 6.70 3.67
Numbers of losers (000's) 255 1,235 600 85 2,175
Average loss (£pw) 0.76 2.57 2.91 3.12 2.47
(b) One parent families
Number of gainers (000's) 85 460 85 1 655
Average gain (£pw) 1.59 2.04 5.16 1 2.61
Number of losers (000's) 60 90 1 1 170
Average loss (£pw) 0.56 1.28 1 1 1.35
1 No reliable estimates available.

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