HC Deb 08 April 1998 vol 310 cc388-91W
Mr. Rendel

To ask the Secretary of State for Social Security if she will list, from October 1999, the marginal tax rates which will apply to lone parents receiving(a) working families tax credit, (b) housing benefit and (c) council tax benefit for those with gross weekly earnings of (i) up to £49, (ii) £50 to £99, (iii) £100 to £149, (iv) £150 to £199, (v) £200 to £249, (vi) £250 to £299 and (vii) £300 and above. [38400]

Mr. Keith Bradley

The information is set out in the table:

percentage
Weekly gross earnings (£s) Working families tax credit (WFTC)only WFTC and housing benefit (HB) WFTC, HB and council tax benefit
25 0.00 65.0 85.0
75 10.0 68.5 86.5
125 68.5 89.0 95.3
175 69.9 89.4 95.5

percentage
Weekly gross earnings (£s) Working families tax credit (WFTC) only WFTC and housing benefit (HB) WFTC, HB and council tax benefit
225 69.9 89.4 95.5
275 69.9 89.4 95.5
300 69.9 89.4 95.5

1. All benefits have been uprated to 1998–99 prices.

2. The following assumptions have been made:

(a) The benefit unit is defined as being a lone parent with 2 children under the age of 11 working full-time.

(b) Given that Marginal Deduction Rates can vary within the specified income bands a mid-point for a measure of gross weekly earnings has been used.

(c) In order that the benefit unit is still entitled to Housing Benefit and Council Tax Benefit at gross weekly earnings in excess of £300, housing costs at £90 per week and council tax liability at £28 per week have been used in the calculations.

Mr. Rendel

To ask the Secretary of State for Social Security (1) how many lone parents with children(a) under 11, and (b) aged 11 years and above, working more than 16 hours per week after 1 June 1998 will be better off as a result of the changes announced in the Budget and due to take effect in November 1998 by (i) up to £2.50, (ii) £2.51 to £5, (iii) £5.01 to £7.50, (iv) £7.51 to £10 and (v) £10.01 and above; and how many will remain unaffected; [38398]

(2) how many lone parents with children (a) under 11 and (b) aged 11 years and above, working more than 16 hours per week after 1 June 1998 will be better off as a result of the changes announced in the Budget and due to take effect in April 1999 by (i) up to £2.50,(ii) £2.51 to £5, (iii) £5.01 to £7.50, (iv) £7.51 to £10 and (v) £10.01 and above; and how many will remain unaffected. [38399]

Mr. Keith Bradley

The information is set out in tables:

Number of lone parents with children under 11, and aged 11 years and above, working more than 16 hours per week after 1 June 1998 who will be better off as a result of the changes announced in the Budget and due to take effect in November 1998
Gain Numbers lone parents with children under 11 Number of lone parents with no children under 11
Unaffected 110,000 260,000
(i) up to £2.50 190,000 0
(ii) £2.51 to £5 60,000 0
(iii) £5.01 to £7.50 10,000 0
(iv) £7.50 to £10 5,000 0
(v) over £10 negligible 0

Source:

1995–96 Family Resources Survey uprated to 1998–99 earnings, prices and benefit levels. Caseload information reflects the position at the end of 1998–99, and their gains at that date.

Notes:

Numbers rounded to the nearest 5,000.

Number of lone parents with children under 11 and aged 11 years and above, Working more than 16 hours per week after 1 June 1998 who will be better off as a result of the changes announced in the Budget and due to take effect in April 1999
Gain Numbers of lone parents with children under 11 Numbers of lone parents with no under 11
Unaffected 265,000 180,000
(i)up to £2.50 110,000 75,000
(ii)£2.51 to £5 0 0
(ii)£5.01 to £7.50 0 0
(iv)£7.50 to £10 0 0
(v)over £10 0 0

Source:

1995–96 Family Resources Survey uprated to 1998–99 earnings, prices and benefit levels. Caseload information reflects the position at the end of 1998–99, and their gains at that date.

Notes:

1.Numbers rounded to the nearest 5,000.

2. Other Budget changes being implemented in April 1999, in particular changes to National Insurance and Married Couples Allowance, have not been included in the analysis.

Mr. Rendel

To ask the Secretary of State for Social Security (1) how many lone parents with children(a) under 11 and (b) aged 11 years and above, claiming income support after 5 April 1998 will be better off as a result of the changes announced in the Budget and due to take effect in November 1998 by (i) up to £2.50,(ii) £2.51 to £5, (iii) £5.01 to £7.50, (iv) £7.51 to £10 and (v) £10.01 and above; and how many will remain unaffected; [38401]

(2) how many lone parents with children (a) under 11 and (b) aged 11 years and above, claiming income support after 5 April 1998 will be better off as a result of the changes announced in the Budget and due to take effect in April 1999 by (i) up to £2.50, (ii) £2.51 to £5,(iii) £5.01 to £7.50, (iv) £7.51 to £10 and (v) £10.01 and above; and how many will remain unaffected. [38402]

Mr. Keith Bradley

The information is set out in the tables.

Number of lone parents with children under 11 and aged 11 years and above, Claiming income support after 5 April 1998 who will be better off as a result of the changes announced in the Budget and due to take effect in November 1998
Gain Numbers of lone parents with children under 11 Numbers of lone parents with no under 11
Unaffected 0 35,000
up to £2.50 135,000 0
£2.51 to £5 65,000 0
£5.01 to £7.50 20,000 0
£7.50 to £10 5,000 0
over £10 1,000 0

Source:

Longitudinal modelling based on successive Income Support QSEs.

Notes:

1. Information based on the stock of Lone Parent to Income Support after 5 April 1998at the end of 1998–99.

2. Figures rounded to the nearest thousand.

Number of lone parents with children under 11 and aged 11 years and above, claiming income support after 5 April 1998 who will be better off as a result of the changes announced in the Budget and due to take effect in April 1999
Gain Numbers of lone parents with children under 11 Numbers of lone parents with no under 11
Unaffected 0 0
up to £2.50 225,000 35,000
£2.51 to £5 0 0
£5.01 to £7.50 0 0
£7.50 to £10 0 0
over £10 0 0

Source:

Longitudinal modelling based on Successive Income Support QSEs.

Notes:

1. Information based on the stock of new claimants at the end of 1998–99 and the value of their gains at the date.

2. Figures rounded to the nearest thousand.