HC Deb 28 July 1989 vol 157 cc1010-6W
Ms. Mowlam

To ask the Secretary of State for Social Security if he will publish tables on spending power using the assumption in the answer to the hon. Member for Bradford, West (Mr. Madden) on 22 June 1988,Official Report, columns 571–575, but using expenditure and benefit figures appropriate for families in Langbaurgh. together with a column showing the extent of the differences resulting from the April changes.

Mrs. Gillian Shephard

[pursuant to the holding answer 13 April 1989]: The information requested is set out in the tables. They compare the post-reform position in April 1988 not with an actual pre-reform cash situation but with a hypothetical position which might have occurred, had the previous structure continued and been uprated on the assumptions in "Impact of the Reformed Structure of Income Related Benefits" (October 1987).

In addition, it should be noted that although the comparisons are based on average local authority housing

Old benefit system at hypothetical rates April 1988
Langbaurgh L.A.
Married couple with 2 children aged 4 and 6
£ per week
Earnings Head Tax NI FIS Child benefit Rent Rent rebate Rates Rate rebate Fares to work Free school meals Free welfare milk Net inc. after housing costs
60.00 0.00 3.00 28.70 14.50 19.70 17.23 9.92 7.68 5.85 2.55 1.83 94.02
70.00 0.00 4.90 23.70 14.50 19.70 15.88 9.92 7.28 5.85 2.55 1.83 95.47
80.00 1.22 5.60 18.70 14.50 19.70 14.73 9.92 6.88 5.85 2.55 1.83 96.90
90.00 3.92 6.30 13.70 14.50 19.70 13.48 9.92 6.48 5.85 2.55 1.83 96.85
100.00 6.62 7.00 8.70 14.50 19.70 12.23 9.92 6.08 5.85 2.55 1.83 96.80
110.00 9.32 9.90 3.70 14.50 19.70 10.71 9.92 5.52 5.85 2.55 1.83 94.12
120.00 12.02 10.80 0.00 14.50 19.70 8.64 9.92 4.70 5.85 2.55 0.00 92.10
130.00 14.72 11.70 0.00 14.50 19.70 5.34 9.92 3.40 5.85 2.55 0.00 93.90
140.00 17.42 12.60 0.00 14.50 19.70 2.04 9.92 2.10 5.85 2.55 0.00 95.70
150.00 20.12 13.50 0.00 14.50 19.70 0.00 9.92 0.80 5.85 0.00 0.00 96.21
160.00 22.82 14.40 0.00 14.50 19.70 0.00 9.92 0.00 5.85 0.00 0.00 101.81
170.00 25.52 15.30 0.00 14.50 19.70 0.00 9.92 0.00 5.85 0.00 0.00 108.21

New benefit system from April 1988
Langbaurgh L.A.
Married couple with two children aged 4 and 6
£ per week
Earnings head Tax NI Family credit Child benefit Rent Rent rebate Rates Rate rebate Fares to work Net income after housing costs Difference between systems
60.00 0.00 3.00 40.32 14.50 19.70 4.94 9.92 3.39 5.85 84.68 -9.34
70.00 0.00 4.90 34.65 14.50 19.70 3.36 9.92 2.91 5.85 85.05 -10.42
80.00 1.22 5.60 28.99 14.50 19.70 1.76 9.92 2.42 5.85 85.40 -11.50
90.00 3.92 6.30 24.37 14.50 19.70 0.00 9.92 2.03 5.85 85.21 -11.64
100.00 6.62 7.00 19.75 14.50 19.70 0.00 9.92 1.63 5.85 86.79 -10.01
110.00 9.32 9.90 16.67 14.50 19.70 0.00 9.92 1.37 5.85 87.85 -6.27
120.00 12.02 10.80 12.19 14.50 19.70 0.00 9.92 0.98 5.85 89.38 -2.72
130.00 14.72 11.70 7.71 14.50 19.70 0.00 9.92 0.60 5.85 90.92 -2.98
140.00 17.42 12.60 3.23 14.50 19.70 0.00 9.92 0.00 5.85 92.24 -3.46
150.00 20.12 13.50 0.00 14.50 19.70 0.00 9.92 0.00 5.85 95.41 -0.80
160.00 22.82 14.40 0.00 14.50 19.70 0.00 9.92 0.00 5.85 101.81 0.00
170.00 25.52 15.30 0.00 14.50 19.70 0.00 9.92 0.00 5.85 108.21 0.00

Old Benefit System at Hypothetical Rates April 1988
Langbaurgh
Married couple with three children aged 3, 8 and 11
£ per week
Earnings head Tax NI FIS Child benefit Rent Rent rebate Rates Rate rebate Fares to work Free school meals Free welfare milk Net income after housing costs
60.00 0.00 3.00 32.90 21.75 19.70 18.27 9.92 8.02 5.85 5.10 1.83 109.40
70.00 0.00 4.90 30.50 21.75 19.70 16.37 9.92 7.41 5.85 5.10 1.83 112.59
80.00 1.22 5.60 25.50 21.75 19.70 15.12 9.92 7.01 5.85 5.10 1.83 114.02
90.00 3.92 6.30 20.50 21.75 19.70 13.87 9.92 6.61 5.85 5.10 1.83 113.97
100.00 6.62 7.00 15.50 21.75 19.70 12.62 9.92 6.21 5.85 5.10 1.83 113.92
110.00 9.32 9.90 10.50 21.75 19.70 11.23 9.92 5.72 5.85 5.10 1.83 111.44
120.00 12.02 10.80 5.50 21.75 19.70 9.58 9.92 5.07 5.85 5.10 1.83 110.54
130.00 14.72 11.70 0.50 21.75 19.70 7.93 9.92 4.42 5.85 5.10 1.83 109.64
140.00 17.42 12.60 0.00 21.75 19.70 4.79 9.92 3.18 5.85 5.10 0.00 109.33
150.00 20.12 13.50 0.00 21.75 19.70 1.49 9.92 1.88 5.85 5.10 0.00 111.13
160.00 22.82 14.40 0.00 21.75 19.70 0.00 9.92 0.58 5.85 2.55 0.00 112.19
170.00 25.52 15.30 0.00 21.75 19.70 0.00 9.92 0.00 5.85 0.00 0.00 115.46

charges in Langbaurgh, they do not necessarily reflect either the wide variety of rents and domestic rates that people in the borough actually pay or real families' circumstances and their housing arrangements. Finally, the comparisons take no account of the housing benefit transitional cash protection announced on 27 April.

New Benefit System from April 1988
Langbaurgh
Married couple with three children aged 3, 8 and 11.
£ per week
Earnings head Tax NI Family credit Child benefit Rent Rent rebate Rates Rate rebate Fares to work Net income after housing costs Difference between systems
60.00 0.00 3.00 51.72 21.75 19.70 3.28 9.92 2.88 5.85 101.16 -8.24
70.00 0.00 4.90 46.05 21.75 19.70 1.70 9.92 2.40 5.85 101.53 -11.06
80.00 1.22 5.60 40.39 21.75 19.70 0.00 9.92 1.91 5.85 101.76 -12.26
90.00 3.92 6.30 35.77 21.75 19.70 0.00 9.92 1.52 5.85 103.35 -10.62
100.00 6.62 7.00 31.15 21.75 19.70 0.00 9.92 1.12 5.85 104.93 -8.99
110.00 9.32 9.90 28.07 21.75 19.70 0.00 9.92 0.86 5.85 105.99 -5.45
120.00 12.02 10.80 23.59 21.75 19.70 0.00 9.92 0.00 5.85 107.05 -3.49
130.00 14.72 11.70 19.11 21.75 19.70 0.00 9.92 0.00 5.85 108.97 -0.67
140.00 17.42 12.60 14.63 21.75 19.70 0.00 9.92 0.00 5.85 110.89 +1.56
150.00 20.12 13.50 10.15 21.75 19.70 0.00 9.92 0.00 5.85 112.81 +1.68
160.00 22.82 14.40 5.67 21.75 19.70 0.00 9.92 0.00 5.85 114.73 +2.54
170.00 25.52 15.30 1.19 21.75 19.70 0.00 9.92 0.00 5.85 116.65 +1.19

Old benefit system at hypothetical rates April 1988
Langbaurgh
Single person with 2 children aged 4 and 6
£ per week
Earnings head Tax NI FIS Child benefit Rent Rent rebate Rates Rate rebate Fares to work Free school meals Free welfare milk Net income after housing costs
60.00 0.00 3.00 28.70 19.40 19.70 16.01 9.92 7.29 5.85 2.55 1.83 97.31
70.00 0.00 4.93 23.70 19.40 19.70 14.76 9.92 6.89 5.85 2.55 1.83 98.76
80.00 1.22 5.60 18.70 19.40 19.70 13.51 9.92 6.49 5.85 2.55 1.83 100.19
90.00 3.92 6.30 13.70 19.40 19.70 12.26 9.92 6.09 5.85 2.55 1.83 100.14
100.00 6.62 7.00 8.70 19.40 19.70 10.75 9.92 5.53 5.85 2.55 1.83 99.67
110.00 9.32 9.90 3.70 19.40 19.70 9.10 9.92 4.88 5.85 2.55 1.83 96.77
120.00 12.02 10.80 0.00 19.40 19.70 7.02 9.92 4.06 5.85 2.55 0.00 94.74
130.00 14.72 11.70 0.00 19.40 19.70 3.72 9.92 2.76 5.85 2.55 0.00 96.54
140.00 17.42 12.60 0.00 19.40 19.70 0.00 9.92 1.46 5.85 2.55 0.00 97.92
150.00 20.12 13.50 0.00 19.40 19.70 0.00 9.92 0.00 5.85 2.55 0.00 102.86
160.00 22.82 14.40 0.00 19.40 19.70 0.00 9.92 0.00 5.85 0.00 0.00 106.71
170.00 25.52 15.30 0.00 19.40 19.70 0.00 9.92 0.00 5.85 0.00 0.00 113.11

New benefit system from April 1988
Langbaurgh
Single person with 2 children aged 4 and 6
£ per week
Earnings head Tax NI Family credit Child benefit Rent Rent rebate Rates Rate rebate Fares to work Net income after housing costs Difference between systems
60.00 0.00 3.00 40.32 19.40 19.70 0.00 9.92 1.52 5.85 82.77 -14.54
70.00 0.00 4.90 34.65 19.40 19.70 0.00 9.92 1.04 5.85 84.72 -14.04
80.00 1.22 5.60 28.99 19.40 19.70 0.00 9.92 0.55 5.85 86.65 -13.54
90.00 3.92 6.30 24.37 19.40 19.70 0.00 9.92 0.00 5.85 88.08 -12.06
100.00 6.62 7.00 19.75 19.40 19.70 0.00 9.92 0.00 5.85 90.06 -9.61
110.00 9.32 9.90 16.67 19.40 19.70 0.00 9.92 0.00 5.85 91.38 -5.39
120.00 12.02 10.80 12.19 19.40 19.70 0.00 9.92 0.00 5.85 93.30 -1.44
130.00 14.72 11.70 7.71 19.40 19.70 0.00 9.92 0.00 5.85 95.22 -1.32
140.00 17.42 12.60 3.23 19.40 19.70 0.00 9.92 0.00 5.85 97.14 -0.78
150.00 20.12 13.50 0.00 19.40 19.70 0.00 9.92 0.00 5.85 100.31 -2.55
160.00 22.82 14.40 0.00 19.40 19.70 0.00 9.92 0.00 5.85 106.71 0.00
170.00 25.52 15.30 0.00 19.40 19.70 0.00 9.92 0.00 5.85 113.11 0.00

Old tax and benefit system—assuming average local authority rent and rates for Langbaurgh and a simple rescaling of April 1987 benefits to April 1988
Lone mother with two children aged 4 and 6
£pw
(a) (b) (c)
Not working after one year on benefit Working part-time earning £20 Working part-time earning £40
Supplementary benefit 45.93 30.89 14.35
Earnings 20.00 40.00
Tax 0.00 0.00
National insurance 0.00 2.00
Fares to work 2.92 2.92
Rent 19.70 19.70 19.70
Rates 9.92 9.92 9.92
Housing benefit 28.06 28.06 28.06
CHB 19.40 19.40 19.40
FSM 2.55 2.55 2.55
FWM 1.83 1.83 1.83
Net weekly spending power 68.15 70.19 71.65

Benefit system from April 1988
Assumptions as in "Impact of reformed structure of income related benefits" October 1987
Average local authority rent and rates for Langbaurgh Lone Mother with two children aged 4 and 6
£ per week
(a)
Not working after one year on benefit
Income support 45.35
Rent 19.70
Rates 9.92
Housing benefit 26.39
CHB 19.40
FSM 2.55
FWM 1.83
Net weekly spending power 65.90
Difference between systems -2.25

Old benefit system at hypothetical rates April 1988
Stockton L.A.
Married couple with two children aged 4 and 6
£ per week
Earnings head Tax NI FIS Child benefit Rent Rent rebate Rates Rate rebate Fares to work Free school meals Free welfare milk Net income after housing costs
60.00 0.00 3.00 28.70 14.50 19.52 17.12 9.81 7.62 5.85 2.55 1.83 94.14
70.00 0.00 4.90 23.70 14.50 19.52 15.87 9.81 7.22 5.85 2.55 1.83 95.59
80.00 1.22 5.60 18.70 14.50 19.52 14.62 9.81 6.82 5.85 2.55 1.83 97.02
90.00 3.92 6.30 13.70 14.50 19.52 13.37 9.81 6.42 5.85 2.55 1.83 96.97
100.00 6.62 7.00 8.70 14.50 19.52 12.12 9.81 6.02 5.85 2.55 1.83 96.92
110.00 9.32 9.90 3.70 14.50 19.52 10.61 9.81 5.45 5.85 2.55 1.83 94.24
120.00 12.02 10.80 0.00 14.50 19.52 8.53 9.81 4.63 5.85 2.55 0.00 92.21
130.00 14.72 11.70 0.00 14.50 19.52 5.23 9.81 3.33 5.85 2.55 0.00 94.01
140.00 17.42 12.60 0.00 14.50 19.52 1.93 9.81 2.03 5.85 2.55 0.00 95.81
150.00 20.12 13.50 0.00 14.50 19.52 0.00 9.81 0.73 5.85 0.00 0.00 96.43
160.00 22.82 14.40 0.00 14.50 19.52 0.00 9.81 0.00 9.85 0.00 0.00 102.10
170.00 25.52 15.30 0.00 14.50 19.52 0.00 9.81 0.00 5.85 0.00 0.00 108.50

£ per week
(b) (c)
Working part time earning £20 Working part time earning £40
Income support 40.35 20.35
Earnings 20.00 40.00
Tax 0.00 0.00
NI 0.00 0.00
Fares to work 2.92 2.92
Rent 19.70 19.70
Rates 9.92 9.92
Housing benefit 26.39 26.39
CHB 19.40 19.40
FSM 2.55 2.55
FWM 1.83 1.83
Net weekly spending power 77.98 77.98
Difference between systems +7.79 +6.33