§ Mr. Tony LloydTo ask the Secretary of State for Social Security if he will publish figures similar to those in his Department's tax model table, including the various component figures, (1) showing net weekly spending power of a lone parent with a child aged three years where(a) the parent is on income support, (b) the parent takes employment for 15 hours a week at £4 an hour and (c) the parent works from 16 hours a week with gross earnings of (i) £40, (ii) £50, (iii) £60, (iv) £70, (v) £80, (vi) £90, (vii) £100, (viii) £110 and (ix) £120 where travel-to-work costs are £10 a week and child care costs are (1) £25 per week, (2) £40 per week and (3) £60 per week, assuming that the new child care allowance for lone parents is in operation;
1025W(2) showing net weekly spending power of a lone parent with children aged one and three years where the parent works more than 16 hours a week and has gross earnings of (a) £40, (b) £50, (c) £60, (d) £70, (e) £80, (f) £90, (g) £100, (h) £110 and (i) £120, where travel-to-work costs are £10 per week, and where child care costs are (i) £25, (ii) £40 and (iii) £60 per week, assuming the new child care allowance for lone parents is in operation.
§ Mr. Burt[holding answer 30 March 1994]: The information requested is in the tables. The level of child care costs specified in some of the questions is significantly higher than those typically encountered at the level of earnings specified. Recent research1 shows that the average weekly child care costs of working lone parents are £24.60 per week.
1"Families, work, and Benefit" (Policy Studies Institute, June 1993).
Notes:
1. Assumptions are those used for the 1994 Tax-benefit Model.
2. Tax allowances and National Insurance contributions are those in force from 1 April 1994.
3. Childcare Allowance introduced from October 1994.
4. Average rent and council Tax values are those used for the 1993 Tax-benefit Model.
Lone parent with one child aged three (a) on income support £ per week £ Income support 60.15 Welfare foods 2.76 Child benefit 16.35
(c) Working over 16 hours per week with childcare costs of £25 per week £ per week Gross earnings £40.00 £50.00 £60.00 £70.00 £80.00 £90.00 £100.00 £110.00 £120.00 Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.13 2.13 4.13 National insurance contributions 0.00 0.00 1.44 2.44 3.44 4.44 5.44 6.44 7.44 Take home pay 40.00 50.00 58.56 67.56 76.56 85.56 94.43 101.43 108.43 Family Credit 55.50 55.50 55.50 55.50 55.50 55.50 55.50 52.19 47.29 Child Benefit 16.35 16.35 16.35 16.35 16.35 16.35 16.35 16.35 16.35 Rent 30.24 30.24 30.24 30.24 30.24 30.24 30.24 30.24 30.24 Rent rebate 30.24 30.24 30.24 25.85 20.00 14.15 8.38 5.98 4.62 Council Tax 6.85 6.85 6.85 6.85 6.85 6.85 6.85 6.85 6.85 Council Tax benefit 6.85 6.85 6.85 5.50 3.70 1.90 0.12 0.00 0.00 Net income 148.94 158.94 167.50 170.76 172.11 173.46 174.78 175.95 176.69 Child care costs 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 Travel to Work costs 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 Net income after Rent, Council Tax, Child care and Travel to Work costs 76.85 88.85 95.41 98.67 100.02 101.37 102.69 103.86 104.60
1026W
(c) Working over 16 hours per week with childcare costs of £40 per week Gross earnings £40.00 £50.00 £60.00 £70.00 £80.00 £90.00 £100.00 £110.00 £120.00 Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.13 2.13 4.13 National insurance contributions 0.00 0.00 1.44 2.44 3.44 4.44 5.44 6.44 7.44 Take home pay 40.00 50.00 58.56 67.56 76.56 85.56 94.43 101.43 108.43 Family Credit 55.50 55.50 55.50 55.50 55.50 55.50 55.50 55.50 55.50 Child Benefit 16.35 16.35 16.35 16.35 16.35 16.35 16.35 16.35 16.35 Rent 30.24 30.24 30.24 30.24 30.24 30.24 30.24 30.24 30.24 Rent rebate 30.24 30.24 30.24 30.34 29.75 23.90 18.13 13.58 9.03 Council Tax 6.85 6.85 6.85 6.85 6.85 6.85 6.85 6.85 6.85 Council Tax benefit 6.85 6.85 6.85 6.85 6.70 4.90 3.12 1.72 0.32 Total net income 148.94 158.94 167.50 176.50 184.86 186.21 187.53 188.58 189.63 Childcare costs 40.00 40.00 40.00 40.00 40.00 40.00 40.00 40.00 40.00 Travel costs 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 Income net of housing, childcare and travel costs 61.85 71.85 80.41 89.41 97.77 99.12 100.44 101.49 102.54
£ Rent 30.24 Rent, rebate 30.24 Council tax 6.85 Council tax benefit 6.85 Net income 116.35 Net income after housing costs 79.26 1027W
(b) On income support with part time earnings £ per week £ £ £ Part-time earnings 60.00 60.00 60.00 Tax 0.00 0.00 0.00 National insurance 1.44 1.44 1.44 Take home pay 58.56 58.56 58.56 Income support 16.59 16.59 16.59 Welfare foods 2.76 2.76 2.76 Child benefit 16.35 16.35 16.35 Rent 30.24 30.24 30.24 Rent rebate 30.24 30.24 30.24 Council tax 6.85 6.85 6.85 Council tax benefit 6.85 6.85 6.85 Net income 131.35 131.35 131.35 Childcare costs 25.00 40.00 60.00 Travel costs 10.00 10.00 10.00 Net income after housing, childcare and travel costs 59.26 44.26 24.26
(c) Working over 16 hours per week with child care costs of £60 per week Gross earnings £40.00 £50.00 £60.00 £70.00 £80.00 £90.00 £100.00 £110.00 £120.00 Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.13 2.13 4.13 National insurance contributions 0.00 0.00 1.44 2.44 3.44 4.44 5.44 6.44 7.44 Take home pay 40.00 50.00 58.56 67.56 76.56 85.56 94.43 101.43 108.43 Family Credit 55.50 55.50 55.50 55.50 55.50 55.50 55.50 55.50 55.50 Child Benefit 16.35 16.35 16.35 16.35 16.35 16.35 15.35 16.35 16.35 Rent 30.24 30.24 30.24 30.24 30.24 30.24 30.24 30.24 30.24 Rent rebate 30.24 30.24 30.24 30.24 29.75 23.90 18.13 13.58 9.03 Council Tax 6.85 6.85 6.85 6.85 6.85 6.85 6.85 6.85 6.85 Council Tax benefit 6.85 6.85 6.85 6.85 6.70 4.90 3.12 1.72 0.32 Total net income 148.94 158.94 167.50 176.50 184.86 186.21 187.53 188.58 189.63 Child care costs 60.00 60.00 60.00 60.00 60.00 60.00 60.00 60.00 60.00 Travel costs 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 Income net of housing, child care and travel costs 41.85 51.85 60.41 69.41 77.77 79.12 80.44 81.49 82.54
Lone parent with two children aged 1 and 3 Earnings and benefit as at October 1994 (i) Working over 16 hours per week with child care costs of £25 per week £ per week Gross earnings £40.00 £50.00 £60.00 £70.00 £80.00 £90.00 £100.00 £110.00 £120.00 Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.13 2.13 4.13 National insurance contributions 0.00 0.00 1.44 2.44 3.44 4.44 5.44 6.44 7.44 Take home pay 40.00 50.00 58.56 67.56 76.56 85.56 94.43 101.43 108.43 Family Credit 66.70 66.70 66.70 66.70 66.70 66.70 66.70 63.39 58.49 Child Benefit 24.60 24.60 24.60 24.60 24.60 24.60 24.60 24.60 24.60 Rent 32.54 32.54 32.54 32.54 32.54 32.54 32.54 32.54 32.54 Rent rebate 32.54 32.54 31.53 25.68 19.83 13.98 8.21 5.81 4.45 Council Tax 7.65 7.65 7.65 7.65 7.65 7.65 7.65 7.65 7.65 Council Tax benefit 7.65 7.65 7.34 5.54 3.74 1.94 0.16 0.00 0.00 Total net income 171.49 181.49 188.73 190.08 191.43 192.78 194.10 195.23 195.97 Child care costs 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 Travel costs 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 Income net of housing, child care and travel costs 96.30 106.30 113.54 114.89 116.24 117.59 118.91 120.04 120.78
(ii) Working over 16 hours per week with child care costs of £40 per week Gross earnings £40.00 £50.00 £60.00 £70.00 £80.00 £90.00 £100.00 £110.00 £120.00 Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.13 2.13 4.13 National insurance contributions 0.00 0.00 1.44 2.44 3.44 4.44 5.44 6.44 7.44 Take home pay 40.00 50.00 58.56 67.56 76.56 85.56 94.43 101.43 108.43 Family Credit 66.70 66.70 66.70 66.70 66.70 66.70 66.70 66.70 66.70 Child Benefit 24.60 24.60 24.60 24.60 24.60 24.60 24.60 24.60 24.60 Rent 32.54 32.54 32.54 32.54 32.54 32.54 32.54 32.54 32.54 Rent rebate 32.54 32.54 32.54 32.54 29.58 23.73 17.96 13.41 8.86 Council Tax 7.65 7.65 7.65 7.65 7.65 7.65 7.65 7.65 7.65 Council Tax benefit 7.65 7.65 7.65 7.65 6.74 4.94 3.16 1.76 0.36 Total net income 171.49 181.49 190.05 199.05 204.18 205.53 206.85 207.90 208.95 Child care costs 40.00 40.00 40.00 40.00 40.00 40.00 40.00 40.00 40.00 Travel costs 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 Income net of housing, child care and travel costs 81.30 91.30 99.86 108.86 113.99 115.34 116.66 117.71 118.76 1028W 1029W
(iii) Working over 16 hours per week with childcare costs of £60 per week £ per week Gross earnings £40.00 £50.00 £60.00 £70.00 £80.00 £90.00 £100.00 £110.00 £120.00 Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.13 2.13 4.13 National insurance contributions 0.00 0.00 1.44 2.44 3.44 4.44 5.44 6.44 7.44 Take home pay 40.00 50.00 58.56 67.56 76.56 85.56 94.43 101.43 108.43 Family Credit 66.70 66.70 66.70 66.70 66.70 66.70 66.70 66.70 66.70 Child Benefit 24.60 24.60 24.60 24.60 24.60 24.60 24.60 24.60 24.60 Rent 32.54 32.54 32.54 32.54 32.54 32.54 32.54 32.54 32.54 Rent rebate 32.54 32.54 32.54 32.54 29.58 23.73 17.96 13.41 8.86 Council Tax 7.65 7.65 7.65 7.65 7.65 7.65 7.65 7.65 7.65 Council Tax benefit 7.65 7.65 7.65 7.65 6.74 4.94 3.16 1.76 0.36
Gross earnings £40.00 £50.00 £60.00 £70.00 £80.00 £90.00 £100.00 £110.00 £120.00 Total net income 171.49 181.49 190.05 199.05 204.18 205.53 206.85 207.90 208.95 Childcare costs 60.00 60.00 60.00 60.00 60.00 60.00 60.00 60.00 60.00 Travel costs 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 Income net of housing, childcare and travel costs 61.30 71.30 79.86 88.86 93.99 95.34 96.66 97.71 98.76