§ Mr. WilsonTo ask the Chancellor of the Exchequer what is the average increase in net weekly spending power of a man with two children of seven and 11 years and a non-working wife for each extra £1 he earns if he increases his pay from(a) £100 to £110, (b) £110 to £120, (c) £120 to £130, d) £130 to £140 and (e) £140 to £150, assuming he pays average rent and community charge.
§ Mr. JackI have been asked to reply.
For the purposes of these examples it has been assumed that housing costs remain static irrespective of the level of gross earrnings. The information is set out in the tables, which show changes in net weekly spending power at the various levels of gross pay to which the hon. Member has referred. Total net income is the product of the interaction of income-related benefits and the tax system at any given level of gross earnings. All assumptions used are as those in the published tax benefit model tables. Each family is assumed to live in council property appropriate to its size and to pay estimated average rent and community charge. 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 October increase in child benefit, have also been incorporated. 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.
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Gross earnings Take home pay Family credit Child benefit Rent rebate Community charge benefit Total net income Net income after rent and community charge 108.00 97.22 39.62 16.75 0.00 1.84 155.43 120.21 109.00 97.88 39.16 16.75 0.00 1.81 155.60 120.38 110.00 98.54 38.70 16.75 0.00 1.78 155.77 120.55 Earnings £111—£120 111.00 99.20 38.24 16.75 0.00 1.75 155.94 120.72 112.00 99.86 37.77 16.75 0.00 1.72 155.10 120.88 113.00 100.52 37.31 16.75 0.00 1.69 156.27 121.05 114.00 101.18 36.85 16.75 0.00 1.66 156.44 121.22 115.00 101.84 36.39 16.75 0.00 1.63 156.61 121.39 116.00 102.50 35.93 16.75 0.00 1.60 156.78 121.56 117.00 103.16 35.46 16.75 0.00 1.57 156.94 121.72 118.00 103.82 35.00 16.75 0.00 1.54 157.11 121.89 119.00 104.48 34.54 16.75 0.00 1.51 157.28 122.06 120.00 105.14 34.08 16.75 0.00 1.48 157.45 122.23 Earnings £121—£130 121.00 105.80 33.62 16.75 0.00 1.45 157.62 122.40 122.00 106.46 33.15 16.75 0.00 1.42 157.78 122.56 123.00 107.12 32.69 16.75 0.00 1.39 157.95 122.73 124.00 107.78 32.23 16.75 0.00 1.36 158.12 122.90 125.00 108.44 31.77 16.75 0.00 1.34 158.30 123.08 126.00 109.10 31.31 16.75 0.00 1.31 158.47 123.25 127.00 109.76 30.84 16.75 0.00 1.28 158.63 123.41 128.00 110.42 30.38 16.75 0.00 1.25 158.80 123.58 129.00 111.08 29.92 16.75 0.00 1.22 158.97 123.75 130.00 111.74 29.46 16.75 0.00 1.19 159.14 123.92 Earnings £131—£140 131.00 112.40 29.00 16.75 0.00 1.16 159.31 124.09 132.00 113.06 28.53 16.75 0.00 1.13 159.47 124.25 133.00 113.72 28.07 16.75 0.00 1.10 159.64 124.42 134.00 114.38 27.61 16.75 0.00 1.07 159.81 124.59 135.00 115.04 27.15 16.75 0.00 1.04 159.98 124.76 136.00 115.70 26.69 16.75 0.00 1.01 160.15 124.93 137.00 116.36 26.22 16.75 0.00 0.98 160.31 125.09 138.00 117.02 25.76 16.75 0.00 0.95 160.48 125.26 139.00 117.68 25.30 16.75 0.00 0.92 160.65 125.43 140.00 118.34 24.84 16.75 0.00 0.89 160.82 125.60 Earnings £141—£150 141.00 119.00 24.38 16.75 0.00 0.86 160.99 125.77 142.00 119.66 23.91 16.75 0.00 0.83 161.15 125.93 143.00 120.32 23.45 16.75 0.00 0.80 161.32 126.10 144.00 120.98 22.99 16.75 0.00 0.77 161.49 126.27 145.00 121.64 22.53 16.75 0.00 0.74 161.66 126.44 146.00 122.30 22.07 16.75 0.00 0.71 161.83 126.61 147.00 122.96 21.60 16.75 0.00 0.68 161.99 126.77 148.00 123.62 21.14 16.75 0.00 0.65 162.16 126.94 149.00 124.28 20.68 16.75 0.00 0.62 162.33 127.11 150.00 124.94 20.22 16.75 0.00 0.59 162.50 127.28