§ Sir Ian GilmourTo ask the Secretary of State for Social Security, further to his replies to the right hon. Member for Chesham and Amersham, 28 June,Official Report, columns 352–53, if he will tabulate figures, as in his Department's tax benefit model tables, setting out for each of the families chosen the components of gross incomes each of the deductions from gross income and the resulting replacement ratios; and what the replacement ratios would be if the non-householder families did not have to pay community charge, and if the couple with two children were paying average local authority rates in 1989–90, uprated, instead of community charge.
§ Mrs. Gillian Shephard[holding answer 17 July 1990]: The available information is set out in the tables.
Pursuant to my replies of 28 June, at columns 352–53, it has been discovered that the information on replacement ratios given earlier was incorrect because no allowance was made for the work expenses specified. Corrected information is incorporated in the tables.
The results in the tables remain arbitrary. They cannot reflect, except by chance, the actual circumstances of particular people and cannot claim to be representative of the population at large. Because of the different nature of community charge compared with the old rating system, it is not possible to apply a simple uprating factor to the latter.
Table 1 Single person aged under 25 Gross earnings per week £ Deductions Replacement ratios Community Charge Tax NI Work expenses £350 Per cent. £450 Per cent. Zero Per cent. 80.00 5.55 3.98 10.00 51.0 51.0 48.0 100.00 10.55 5.78 10.00 41.0 42.0 39.0 120.00 15.55 7.58 10.00 34.0 35.0 33.0
Table 2 Single person with one child aged 3 Gross earnings per week £ Deductions Replacement ratios Community Charge Tax NI Work expenses £350 Per cent. £450 Per cent. Zero Per cent. 60.00 0.00 2.18 50.00 104.0 104.0 96.0 80.00 0.00 3.98 50.00 96.0 96.0 88.0 100.00 2.28 5.78 50.00 91.0 89.0 83.0
498W
By Family Type Real rise per cent. Before housing costs After housing costs Category and Group (median) 1979–85 1979–87 1981–87 1979–85 1979–87 1981–87 Married Pensioner Lowest 13 13 7 13 15 8 2 14 19 11 9 16 12 3 11 22 17 10 23 19 4 14 24 18 17 27 20 Highest 16 26 19 22 32 21
Table 3 Married couple with two children aged under 5 Gross earnings per week £ Deductions Replacement ratios Community Charge Tax NI Work expenses £350 Per cent. £450 Per cent. 120.00 7.28 7.58 10.00 373.0 382.0 140.00 12.28 9.38 10.00 327.0 334.0 160.00 17.28 11.18 10.00 292.0 297.0 180.00 22.28 12.98 10.00 219.0 221.0 200.00 27.28 14.78 10.00 172.0 174.0 220.00 32.28 16.58 10.00 137.0 143.0 240.00 37.28 18.38 10.00 115.0 119.0 260.00 42.28 20.18 10.00 98.0 102.0 280.00 47.28 21.98 10.00 86.0 88.0 300.00 52.28 23.78 10.00 76.0 78.0 Notes:
The methods and assumptions are those used in the published Tax/Benefit Model Tables but in tables 1 and 2 it has been assumed that no rent is payable.
Replacement Ratios are rounded to the nearest per cent.