HC Deb 17 April 1991 vol 189 cc190-1W
Mr. Ralph Howell

To ask the Secretary of State for Social Security what will be the net income after the Budget proposals have come into effect (i) after housing costs of a married man with children aged 13 to 16 years earning(a) £104 and (b) £105 per week, (ii) of a married man with children aged three, eight and 11 years paying average rent and rates as used in the tax benefit model tables earning (a) £65 per week and (b) £80 per week, (iii) after benefits of a married man with children aged four and six years earning (a) £60 per week gross and (b) £140 per week gross (iv) under current tax and benefit structure of a married man with children aged three, eight and 11 years with gross earnings of (a) £65 per week and (b) £105 per week and (v) under the current tax and benefit structure of a married man with children aged four and six years earning (a) £80 per week and (b) £90 per week.

Mr. Jack

The information is set out in the tables. All assumptions are as set out in the published tax-benefit model tables. For the purposes of these examples, it has been assumed that housing costs remain static irrespective of the level of gross earnings. Each family is assumed to live in council property appropriate to its size and to pay estimated average rent and community charge. Total net income is the product of the interaction of income-related benefits and the tax system at any given level of gross earnings. In the tables relating to the situation after the Budget proposals have come into effect, average rents are provisional 1991–92 figures and community charge has been assessed at £250 per annum. Any relevant changes announced in the Budget, including the increase in child benefit which will take effect in October, have also been incorporated. Those relating to the situation before the Budget use benefit rates in force before the April uprating.

It should be noted that 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. The tables use hypothetical rents so they do not reflect the full range of housing costs which people can pay.

The information is as follows:

Tables (i) to (iii)—post Budget Married couple with two children aged 13 and 16
Gross earnings (£pw) Net income after rent and community charge (£pw)
104 130.59
105 130.63
Married couple with three children aged three, eight and 11
Gross earnings (£pw) Net income after rent and community charge (£pw)
65 132.67
80 133.48
Married couple with two children aged four and six
Gross earnings (£pw) Net income after rent and community charge (£pw)
60 111.5
140 119.0
Tables (iv) to (v)—pre-Budget Married couple with three children aged three, eight and 11
Gross earnings (£pw) Net income after rent and community charge (£pw)
65 121.23
105 125.60
Married couple with two children aged four and six
Gross earnings (£pw) Net income after rent and community charge (£pw)
80 103.17
90 103.72