§ Sir Ian GilmourTo ask the Secretary of State for Social Security if he will publish figures showing disposable income in and out of work, after 16 weeks, for a single-wage family with two children aged four and six years and a mortgage of(a) £50,000 (b) £75,000 and (c) £100,000 assuming offer wages of £200, £250, £300, £350, £400, £450 and £500 a week.
§ Mr. Jack[holding answer 20 May 1991]: The information is set out in the table. The figures are based on the following assumptions.
Mortgage payments are for interest only and contain no repayments of capital. Where an income support claimant's outgoings are unnecessarily high they may be restricted to the amount that they would need to obtain suitable alternative accommodation. In the table, it has been assumed that no such restriction has been applied. They are shown net of tax. The mortgage shown is the capital outstanding. Mortgage interest is calculated at 12–95 per cent.
In calculating the figures the same assumptions have been used as are found in the tax benefit model tables. Net income in work includes child benefit and any community charge benefit as may be payable. 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.