HC Deb 18 December 1991 vol 201 cc202-3W
Mr. Tony Lloyd

To ask the Secretary of State for Social Security (1) if he will publish figures similar to those in his Department's tax/benefit model table, showing net weekly spending power for a lone mother with two children aged four and six years working four hours a day, five days a week for £2 art hour(a) under the 1991–92 benefit system and (b) under the benefit system as proposed for 1992–93, with Family Credit being paid for work of 16 hours or more a week, at 1991–92 rates;

(2) if he will publish figures similar to those in his Department's tax/benefit model table, showing net weekly spending power for each of a single wage married couple (a) with two children aged four and six years and (b) with three children aged three, eight and eleven years working four hours a day, five days a week for £2 an hour (i) under the 1991–92 benefit system and (ii) under the benefit system as proposed for 1992–93, with Family Credit being paid for work of 16 hours or more a week, at 1991–92 rates;

(3) if he will publish figures similar to those in his Department's tax/benefit model table, showing net weekly spending power for a single wage married couple with no children working four hours a day, five days a week for (a) £2.00, (b) £2.50 and (c) £3.00 an hour (i) under the 1991–92 benefit system and (ii) under the benefit system as proposed for 1992–93, with Family Credit being paid for work of 16 hours or more a week, at 1991–92 rates.

Mr. Jack

Anyone in receipt of income support at the moment of change in the rules at the start of 1992–93, will retain entitlement to income support and, therefore, their income need not change. Families with children can obtain advice from the Benefits Agency as to whether or not it would be better for them to claim family credit. Couples without children are not entitled to family credit.

The following table shows the net weekly spending power for people at 1991–92 rates (a) in 1991–92, and in 1992–93 if they choose to remain on income support and (b) for those newly claiming in 1992–93.

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 figures in column (b) do not include the increased benefit rates coming into effect from April 1992, when child benefit will be increased by 4.1 per cent. and income-related benefits will be increased by 7 per cent.

(a) (b)
Gross pay Net weekly spending power Net weekly spending power
Family type £ per hour £ per week £ per week
Lone parent (as specified) 2.00 99.33 111.55
Married couple with two children (as specified) 2.00 106.54 107.54
Married couple with three children (as specified) 2.00 129.57 128.25
Married couple with no children 2.00 65.37 38.12
2.50 65.37 48.12
3.00 65.37 56.35