HC Deb 26 July 1989 vol 157 cc762-5W
Mr. Lester

To ask the Secretary of State for Social Security if he will update his reply to the hon. Member for Pembroke (Mr. Bennett) of 30 March,Official Report columns 545–8, showing (a) net spending power for a lone mother with two children aged four and eight years when (i) not working, (ii) earning £20 a week for part-time work, (iii) earning £40 a week for part-time work and (iv) working full-time and earning £60 through to £200 a week in steps of £10, (b) net spending power for a single-wage married couple with two children aged four and six years, (i) not working, (ii) earning £20 a week part-time, (iii) earning £40 a week part-time and (iv) working full time and earning £60 through to £200 a week in steps of £10.

Mrs. Gillian Shephard

The information requested is set out in the tables. It shoud be noted that the results are hypothetical because the results are based on average local authority housing charges and do not reflect the wide variety of rents and domestic rates that people actually pay.

Lone mother with two children aged 4 and 8
October 1989
(assuming average local authority rent and rates)
Gross earnings Tax National insurance Take home pay Family credit Child benefit Rent Rent rebate Rates Rates rebate Total net income Net income after housing costs
60.00 0.00 2.39 57.61 46.23 19.70 21.50 0.00 9.00 0.00 123.54 93.04
70.00 0.00 3.29 66.71 39.86 19.70 21.50 0.00 9.00 0.00 126.27 95.77
80.00 0.00 4.19 75.81 33.49 19.70 21.50 0.00 9.00 0.00 129.00 98.50
90.00 1.47 5.09 83.44 28.15 19.70 21.50 0.00 9.00 0.00 131.29 100.79
100.00 3.97 5.99 90.04 23.53 19.70 21.50 0.00 9.00 0.00 133.27 102.77
110.00 6.47 6.89 96.64 18.91 19.70 21.50 0.00 9.00 0.00 135.25 104.75
120.00 8.97 7.79 103.24 14.29 19.70 21.50 0.00 9.00 0.00 137.23 106.73
130.00 11.47 8.69 109.84 9.67 19.70 21.50 0.00 9.00 0.00 139.21 108.71
140.00 13.97 9.59 116.44 5.05 19.70 21.50 0.00 9.00 0.00 141.19 110.69
150.00 16.47 10.49 123.04 0.00 19.70 21.50 0.00 9.00 0.00 142.74 112.24
160.00 18.97 11.39 129.64 0.00 19.70 21.50 0.00 9.00 0.00 149.34 118.84
170.00 21.47 12.29 136.24 0.00 19.70 21.50 0.00 9.00 0.00 155.94 125.44
180.00 23.97 13.19 142.84 0.00 19.70 21.50 0.00 9.00 0.00 162.54 132.04
190.00 26.47 14.09 149.44 0.00 19.70 21.50 0.00 9.00 0.00 169.14 138.64
200.00 28.97 14.99 156.04 0.00 19.70 21.50 0.00 9.00 0.00 175.74 145.24

Tax and benefit system from April 1989—single wage married couple with two children aged 4 and 6 (assuming average local authority rent and rates)
Not working 1 year on benefit Working part-time £20 earnings Working part-time £40 earnings
Income Support 70.30 55.30 35.30
Gross Earnings 0.00 20.00 40.00
Tax 0.00 0.00 0.00
National Insurance 0.00 0.00 0.00
Rent 21.50 21.50 21.50

Single-wage married couple with 2 children aged 4 and 8, October 1989
(assuming average local authority rent and rates)
Gross earnings Tax NI Take home pay Family credit Child benefit Rent Rent rebate Rales Rate rebate Total net income Net income after housing costs
60.00 0.00 2.39 57.61 46.23 14.50 21.50 6.20 9.00 2.49 127.03 96.53
70.00 0.00 3.29 66.71 39.86 14.50 21.50 4.42 9.00 1.95 127.44 96.94
80.00 0.00 4.19 75.81 33.49 14.50 21.50 2.65 9.00 1.40 127.85 97.35
90.00 1.47 5.09 83.44 28.15 14.50 21.50 1.16 9.00 0.94 128.19 97.69
100.00 3.97 5.99 90.04 23.53 14.50 21.50 0.00 9.00 0.55 128.62 98.12
110.00 6.47 6.89 96.64 18.91 14.50 21.50 0.00 9.00 0.00 130.05 99.55
120.00 8.97 7.79 103.24 14.29 14.50 21.50 0.00 9.00 0.00 132.03 101.56
130.00 11.47 8.69 109.84 9.67 14.50 21.50 0.00 9.00 0.00 134.01 103.51
140.00 13.97 9.59 116.44 5.05 14.50 21.50 0.00 9.00 0.00 135.99 105.49
150.00 16.47 10.49 123.04 0.00 14.50 21.50 0.00 9.00 0.00 137.54 107.04
160.00 18.97 11.39 129.84 0.00 14.50 21.50 0.00 9.00 0.00 144.14 113.64
170.00 21.47 12.29 136.24 0.00 14.50 21.50 0.00 9.00 0.00 150.74 120.24

Tax and benefit system from April 1989—lone mother with two children aged 4 and 8
(assuming average local authority rent and rates)
Not working 1 year on benefit Working part-time £20 earnings Working part-time £40 earnings
Income Support 49.10 44.10 24.10
Gross Earnings 0.00 20.00 40.00
Tax 0.00 0.00 0.00
National Insurance 0.00 0.00 0.00
Rent 21.50 21.50 21.50
Rent Rebate 21.50 21.50 21.50
Rates 9.00 9.00 9.00
Rates Rebate 7.20 7.20 7.20
Child Benefit 19.70 19.70 19.70
Free School Meals 2.70 2.70 2.70
Free Welfare Milk 1.83 1.83 1.83
Net Income 71.53 86.53 86.53
After Housing Costs

Not working 1 year on benefit Working part-time £20 earnings Working part-time £40 earnings
Rent Rebate 21.50 21.50 21.50
Rates 9.00 9.00 9.00
Rates Rebate 7.20 7.20 7.20
Child Benefit 14.50 14.50 14.50
Free School Meals 2.70 2.70 2.70
Free Welfare Milk 1.83 1.83 1.83
Net Income 87.53 92.53 92.53
After Housing Costs

Gross earnings Tax NI Take home pay Family credit Child benefit Rent Rent rebate Rates Rate rebate Total net income Net income after housing costs
180.00 23.97 13.19 142.84 0.00 14.50 21.50 0.00 9.00 0.00 157.34 126.84
190.00 26.47 14.09 149.44 0.00 14.50 21.50 0.00 9.00 0.00 163.94 133.44
200.00 28.97 14.99 156.04 0.00 14.50 21.50 0.00 9.00 0.00 170.54 140.04