HC Deb 26 July 1993 vol 229 c729W
Mr. Raynsford

To ask the Secretary of State for Social Security how much income net of tax, national insurance and benefit reductions, is retained out of each £.1 per week increase in gross earnings by(a) a single adult aged 26 years earning £132 per week, (b) a lone parent with one child aged nine years earning £136 per week and (c) two adults with two children aged 12 and 14 years earning £196 per week, on the assumption that each is paying rent of £48 per week and council tax of £10 per week.

Mr. Burt

The information is in the table. Marginal deduction rates in excess of 90 pence in the pound are estimated to affect less than half of 1 per cent. of the working population.

Single adult age 26 Lone parent with 9-year-old child Two adults with children aged 12 and 14
£ £ £
Gross earnings 132.00 136.00 196.00
Tax 14.03 7.33 21.76
National insurance 7.96 8.32 13.72
Take-home pay 110.01 120.35 160.52
Child benefit 0.00 16.05 18.10
Family credit 0.00 17.31 14.14
Rent 48.00 48.00 48.00
Rent rebate 8.35 16.12 9.13
Council tax 10.00 10.00 10.00
Council tax benefit 0.00 0.19 0.00
Total net income 118.35 170.01 201.88
Net income after R and CT 60.35 112.01 143.88
Marginal increase rate 0.23 0.03 0.07