Lone Parents (Hansard, 20 January 1994)

§ Mr. Tony Lloyd

To ask the Secretary of State for Social Security if he will publish figures similar to those in his Department's tax-benefit model table, including the various component figures, showing net weekly spending power of a lone parent with children aged one and three years where(a) the parent is on income support, (b) the parent takes employment for 15 hours a week at £4 per hour, with £7.50 per week travel costs and £30 per week child care costs, (c) the parent takes employment for 20 hours a week at £3 an hour, with £10 per week travel costs and £40 per week child care costs and (d) the parent takes employment for 30 hours a week at £3 an hour, with £10 per week travel costs and £40 per week child care costs, assuming that the new child care allowance for lone parents is in operation.

§ Mr. Hague

The information requested is in the table. The level of child care and travel costs specified in the question are significantly higher than those typically encountered for lone parents at the level of earnings specified. Recent research¹ shows that the average weekly child care costs of working lone parents are £24.60 a week.

Changes in the level of Unemployment Benefit since 1979
	Personal Benefit	Increase for Dependent
	Standard Rate	Adult	Child
2 April 1979	100	100	100
15 November 1979	117	117	200
27 November 1980	131	131	147
26 November 1981	143	143	94
25 November 1982	159	158	35
24 November 1983	172	171	18
26 November 1984	181	180	¹—
28 November 1985	193	193	¹—
31 July 1986	196	195	¹—
9 April 1987	200	199	¹—
14 April 1988	208	207	¹—
10 April 1989	220	219	¹—
9 April 1990	237	236	¹—
11 April 1991	263	262	¹—
9 April 1992	274	273	¹—
15 April 1993	283	283	¹—

798W

¹"Families, Work, and Benefits" (Policy Studies Institute, June 1993).

Lone parent with two children aged 1 and 3
Earnings and benefit as at October 1994 (£)
	(a)	(b)	(c)	(d)
Gross earnings	0.00	60.00	60.00	90.00
Tax	0.00	0.00	0.00	0.00
National Insurance contributions	0.00	1.44	1.44	4.44
Take home pay	0.00	58.56	58.56	85.56
Income support	67.55	23.99	0.00	0.00
Free welfare foods	5.18	5.18	0.00	0.00
Family credit	0.00	0.00	66.70	66.70
Child benefit	24.60	24.60	24.60	24.60
Rent	32.54	32.54	32.54	32.54
Rent rebate	32.54	32.54	32.54	23.73
Council tax	7.65	7.65	7.65	7.65
Council tax benefit	7.65	7.65	7.65	4.94
Total net income	137.52	152.52	190.05	208.24
Income net of rent and council tax	97.33	112.33	149.86	168.05
Childcare and travel costs	0.00	37.50	50.00	50.00
Income net of housing, childcare and travel costs	97.33	74.83	99.86	118.05
(a) Parent on income support.
(b) Parent takes employment for 15 hours a week at £4 per hour, child care costs of £30 per week and travel to work costs of £7.50 per week.
(c) Parent takes employment for 20 hours a week at £3 per hour, child care costs of £40 per week and travel to work costs of £10 per week.
(d) Parent takes employment for 30 hours a week at £3 per hour, child care costs of £40 per week and travel to work costs of £10 per week.

NotesThe tables include the following information:

1. April 1994 benefit rates.

2. April 1993 rates for rent, council tax and welfare foods.