§ Ms. RichardsonTo ask the Secretary of State for Social Security if he will publish a table showing the numbers of (i) working heads, (ii) dependants and (iii) families with children facing marginal tax and benefit withdrawal rates in the manner of his answer to the hon. Member for Hornchurch (Mr. Squire) of 23 January 1991,Official Report, column 249; and if he will identify how many more families with children will face higher marginal tax rates as a result of the change in the hours rule from 24 to 16 per week for family credit.
§ Mr. BurtThe information requested is in the table. This is not directly comparable with previous answers, in that these related to the population of benefit recipients working 24 hours per week or more, whereas the current table adds in all those working 16 to 24 hours.
187WIt is unlikely that any families with children will face higher deduction rates as a result of the change of hours rule. This is because those affected would have continued to receive income support if the rule had remained at 24 hours, and so would have faced marginal deduction rates of 100 per cent. (after taking into account the earnings disregard).
Combined marginal tax and benefit withdrawal rates, 1992–93 for benefit units in receipt of in-work income-related benefits where at least one partner works more than 15 hours a week. Great Britain (thousands) Numbers facing combined rates of over 50 per cent.—in bands1 Per cent. Families with children Couples and single people Total 100 0 0 0 90 to 99 75 0 75 80 to 89 130 40 170 70 to 79 180 60 245 60 to 69 5 5 10 50 to 59 0 0 0 Notes:
1 Figures are based on pooled Family Expenditure Survey Data, uprated 1992–93 prices, taxes and benefit levels.
- Figures are rounded to the nearest 5,000.
- Totals may not add due to rounding.
- Analysis does not take into account Transitional Protection.
- Figures do not take into account Disability Living Allowance and Disability Working Allowance.