§ Mr. WebbTo ask the Secretary of State for Social Security what would be the effect on the number of people facing combined marginal withdrawal rates of tax on benefits of(a) 100 per cent. or above, (b) 90 per cent. or above, (c) 80 per cent. or above, (d) 70 per cent. or above, (e) 60 per cent. or above and (f) 50 per cent. or above of cutting the taper on family credit and on housing benefit by 10 per cent., if no other changes were made to the tax and benefit system. [19257]
Mr. BradleyThe information is set out in the table.
Marginal tax rate Difference in numbers facing highmarginal tax rates, following a reductionof 10 per cent. in the family credit andhousing benefit tapers 100+ 1— 90+ -60,000 80+ -195,000 70+ +45,000 60+ +200,000 50+ +210,000 1 Denotes less than 2,500. 1. Figures are rounded to the nearest 5,000.
2. Figures are calculated for benefit units where at least one partner works 16 hours or more.
3. Figures are based on the 1994–95 Family Resources Survey, uprated to 1996–97 levels of prices and benefit rates.