§ Sir David KnoxTo ask the Secretary of State for Social Security if he will publish tables similar to those in his Department's 1993 tax benefit model tables, but with rents, council tax, benefits and direct taxes updated to 1994, showing the net weekly spending power of a lone mother with two children aged four and six years, now and after introduction of the childcare disregard for family credit, on the assumptions she is(a) not in paid work, (b) working part time earning the maximum income support earnings disregard, (c) working part time for 16 hours earning £40 per week, (d) working part time for 24 hours earning £60 a week and (e) working full time and earning weekly sums from £100 to £300 in increments of £10 and assuming childcare costs of £25 when working 16 hours a week, of £40 when working 24 hours a week, and of £70 when working full time.
§ Mr. BurtThe information is in the tables. The childcare disregard will be introduced in October and will apply to the calculation of housing benefit, council tax benefit and disability working allowance as well as family credit. Up to £40 of childcare costs for children under 11 will be disregarded against earnings, provided that care is arranged with a registered childminder or nursery.
The level of earnings in some of the questions is particularly low and not representative of the average working lone parent. In addition, some of the childcare costs specified are significantly higher than those typically encountered at the level of earning specified. Recent research1 shows that the average weekly childcare costs of working lone parents are £24.60 per week.
228W
"Families, Work, and Benefit" (Policy Studies Institute, June 1993). Lone mother with 2 children aged 4 and 6. Position at April 1994 and October 1994 £ (a) Not in paid work Gross earnings 0.00 Tax 0.00 National insurance 0.00 Take home pay 0.00 Income support 67.55 Family credit 0.00 Child benefit 24 60 Rent 36.42 Rent rebate 36.42 Council tax 8.30 Council tax benefit 8.30 FSM/FWF 6.80 Child care costs 0.00 Total net income 143.67 Net income after Rent, Council tax, child care costs 98.65
Position at April 1994 and October 1994 £ (b) Working part-time earning the maximum income support disregard Gross earnings 15.00 Tax 0.00 National insurance 0.00 Take home pay 15.00 Income support 67.55 Family credit 0.00 Child benefit 24.60 Rent 36.42 Rent rebate 36.42 Council tax 8.30 Council tax benefit 8.30 FSM/FWF 6.80 Child care costs 0.00 Total net income 158.67 Net income after Rent, Council tax, child care costs 113.95
Position at April 1994 £ (c) Working part-time for 16 hours earning £40.00 per week with child care Gross earnings 40.00 Tax 0.00 National insurance 0.00 Take home pay 40.00 Income support 0.00 Family credit 66.70 Child benefit 24.60 Rent 36.42 Rent rebate 31.22 Council tax 8.30 Council tax benefit 6.70 FSM/FWF 0.00 Child care costs 25.00 Total net income 169.22 Net income after Rent, Council tax, child care costs 99.50
Position at October 1994 £ Child care allowance=£25.00 Gross earnings 40.00 Tax 0.00 National insurance 0.00 Take home pay 40.00 Income support 0.00 Family credit 66.70 Child benefit 24.60 Rent 36.42 Rent rebate 36.32 Council tax 8.30 Council tax benefit 8.30 FSM/FWF 0.00 Child care costs 25.00 Total net income 176.02 Net income after Rent, Council tax, child care costs 106.30
229W
Position at April 1994 £ (d) Working part-time for 24 hours earning £60.00 per week with child care Gross earnings 60.00 Tax 0.00 NI 1.44 Take home pay 58.56 Income support 0.00 Family credit 66.70 Child benefit 24.60
£ Rent 36.42 Rent rebate 19.16 Council tax 8.30 Council tax benefit 2.99 FSM/FWF 0.00 Child care costs 40.00 Total net income 172.01 Net income after Rent, Council tax, child care costs 87.29
Position at October 1994 £ Child care allowance=£40. Gross earnings 60.00 Tax 0.00
e: Working full-time with child care costs of £70.00 Position at April 1994 Gross earnings Tax (£) NI (£) Take home pay (£) Income support (£) Family credit (£) Child benefit (£) Rent (£) Rent rebate (£) Council tax (£) Council tax benefit (£) FSM/FWF (£) Child care costs (£) Total net income (£) Net income after rent, council tax child care costs (£) 100.00 0.14 5.44 94.42 0.00 50.79 24.60 36.42 6.19 8.30 0.00 0.00 70.00 176.00 61.28 110.00 2.14 6.44 101.42 0.00 45.89 24.60 36.42 4.82 8.30 0.00 0.00 70.00 176.73 62.01 120.00 4.14 7.44 108.42 0.00 40.99 24.60 36.42 3.46 8.30 0.00 0.00 70.00 177.47 62.75 130.00 6.44 8.44 115.12 0.00 36.31 24.60 36.42 2.15 8.30 0.00 0.00 70.00 178.18 63.46 140.00 8.94 9.44 121.62 0.00 31.76 24.60 36.42 0.88 8.30 0.00 0.00 70.00 178.86 64.14 150.00 11.44 10.44 128.12 0.00 27.21 24.60 36.42 0.00 8.30 0.00 0.00 70.00 179.93 65.21 160.00 13.94 11.44 134.62 0.00 22.66 24.60 36.42 0.00 8.30 0.00 0.00 70.00 181.88 67.16 170.00 16.44 12.44 141.12 0.00 18.11 24.60 36.42 0.00 8.30 0.00 0.00 70.00 183.83 69.11 180.00 18.94 13.44 147.62 0.00 13.56 24.60 36.42 0.00 8.30 0.00 0.00 70.00 185.78 71.06 190.00 21.44 14.44 154.12 0.00 9.01 24.60 36.42 0.00 8.30 0.00 0.00 70.00 187.73 73.01 200.00 23.94 15.44 160.62 0.00 4.46 24.60 36.42 0.00 8.30 0.00 0.00 70.00 189.68 74.96 210.00 26.44 16.44 167.12 0.00 0.00 24.60 36.42 0.00 8.30 0.00 0.00 70.00 191.72 77.00 220.00 28.94 17.44 173.62 0.00 0.00 24.60 36.42 0.00 8.30 0.00 0.00 70.00 198.22 83.50 230.00 31.44 18.44 180.12 0.00 0.00 24.60 36.42 0.00 8.30 0.00 0.00 70.00 204.72 90.00 240.00 33.94 19.44 186.62 0.00 0.00 24.60 36.42 0.00 8.30 0.00 0.00 70.00 211.22 96.50 250.00 36.44 20.44 193.12 0.00 0.00 24.60 36.42 0.00 8.30 0.00 0.00 70.00 217.22 103.00 260.00 38.94 21.44 199.62 0.00 0.00 24.60 36.42 0.00 8.30 0.00 0.00 70.00 224.22 109.50 270.00 41.44 22.44 206.12 0.00 0.00 24.60 36.42 0.00 8.30 0.00 0.00 70.00 230.72 116.00 280.00 43.94 23.44 212.62 0.00 0.00 24.60 36.42 0.00 8.30 0.00 0.00 70.00 237.22 122.50 290.00 46.44 24.44 219.12 0.00 0.00 24.60 36.42 0.00 8.30 0.00 0.00 70.00 243.72 129.00 300.00 48.94 25.44 225.62 0.00 0.00 24.60 36.42 0.00 8.30 0.00 0.00 70.00 250.22 135.50
230W
Position at October 1994 Child care allowance=£40.00 Gross earnings Tax (£) NI (£) Take home pay (£) Income support (£) Family credit (£) Child benefit (£) Rent (£) Rent rebate (£) Council tax (£) Council tax benefit (£) FSM/FWF (£) Child care costs (£) Total net income (£) Net income after rent, council tax child care costs (£) 100.00 0.14 5.44 94.42 0.00 66.70 24.60 36.42 21.84 8.30 3.82 0.00 70.00 211.38 96.66 110.00 2.14 6.44 101.42 0.00 66.70 24.60 36.42 17.29 8.30 2.42 0.00 70.00 212.43 97.71 120.00 4.14 7.44 108.42 0.00 66.70 24.60 36.42 12.74 8.30 1.02 0.00 70.00 213.48 98.76 130.00 6.44 8.44 115.12 0.00 64.31 24.60 36.42 9.95 8.30 0.15 0.00 70.00 214.13 99.41 140£00 8.94 9.44 121.62 0.00 59.76 24.60 36.42 8.68 8.30 0.00 0.00 70.00 214.66 99.94 150.00 11.44 10.44 128.12 0.00 55.21 24.60 36.42 7.41 8.30 0.00 0.00 70.00 215.34 100.62 160.00 13.94 11.44 134.62 0.00 50.66 24.60 36.42 6.14 8.30 0.00 0.00 70.00 216.02 101.30 170.00 16.44 12.44 141.12 0.00 46.11 24.60 36.42 4.88 8.30 0.00 0.00 70.00 216.71 101.99 180.00 18.94 13.44 147.62 0.00 41.56 24.60 36.42 3.61 8.30 0.00 0.00 70.00 217.39 102.67 190.00 21.44 14.44 154.12 0.00 37.01 24.60 36.42 2.34 8.30 0.00 0.00 70.00 218.07 103.35 200.00 23.94 15.44 160.62 0.00 32.46 24.60 36.42 1.07 8.30 0.00 0.00 70.00 218.75 104.03 210.00 26.44 16.44 167.12 0.00 27.91 24.60 36.42 0.00 8.30 0.00 0.00 70.00 219.63 104.91 220.00 28.94 17.44 173.62 0.00 23.36 24.60 36.42 0.00 8.30 0.00 0.00 70.00 221.58 106.86 230.00 31.44 18.44 180.12 0.00 18.81 24.60 36.42 0.00 8.30 0.00 0.00 70.00 223.53 108.81 240.00 33.94 19.44 186.62 0.00 14.26 24.60 36.42 0.00 8.30 0.00 0.00 70.00 225.48 110.76 250.00 36.44 20.44 193.12 0.00 9.71 24.60 36.42 0.00 8.30 0.00 0.00 70.00 227.43 112.71 260.00 38.94 21.44 199.62 0.00 5.16 24.60 36.42 0.00 8.30 0.00 0.00 70.00 229.38 114.66 270.00 41.44 22.44 206.12 0.00 0.61 24.60 36.42 0.00 8.30 0.00 0.00 70.00 231.33 116.61 280.00 43.94 23.44 212.62 0.00 0.00 24.60 36.42 0.00 8.30 0.00 0.00 70.00 237.22 122.50
231W
£ NI 1.44 Take home pay 58.56 Income support 0.00 Family credit 66.70 Child benefit 24.60 Rent 36.42 Rent rebate 36.42 Council tax 8.30 Council tax benefit 8.30 FSM/FWF 0.00 Child care costs 40.00 Total net income 194.58 Net income after Rent, Council tax, child care costs 109.86
Gross earnings Tax (£) NI (£) Take home pay (£) Income support (£) Family credit (£) Child benefit (£) Rent (£) Rent rebate (£) Council tax (£) Council tax benefit (£) FSM/FWF (£) Child care costs (£) Total net income (£) Net income after rent, council tax child care costs (£) 290.00 46.44 24.44 219.12 0.00 0.00 24.60 36.42 0.00 8.30 0.00 0.00 70.00 243.72 129.00 300.00 48.94 25.44 225.62 0.00 0.00 24.60 36.42 0.00 8.30 0.00 0.00 70.00 250.22 135.50 Notes:
1. The family is assumed to live in council property appropriate to their size and pay estimated average rent and council tax.
2. The family is assumed to have no capital and take up entitlement to One Parent Benefit and all income-related benefits.
3. The cash value of free school meals and welfare foods available to the family receiving Income Support is shown in the column headed FSM/FWF.