§ Mr. MacShaneTo ask the Chancellor of the Exchequer if he will list for the current tax year the income tax and national insurance paid and child benefits received by(a) a single person without dependants, (b) a lone parent with one child aged four years, (c) a lone parent with two children aged four and six years, (d) a single earner married couple with one child aged four years and (e) a single earner married couple with two children aged four and six years, where the gross income is (i) £150, (ii) £200, (iii) £250, (iv) £300 and(v) £400 per week and is wholly from employment; and if in each case he will show the equivalised income before housing costs on the assumption that there are no child care costs, housing costs are £75 per week and all available benefits are claimed, and showing also the tax and national insurance contributions net of benefits as a percentage of the equivalised incomes. [32428]
§ Dawn PrimaroloThe information requested is contained in the tables.
401W
Gross earnings (£) 150 200 250 300 350 Single Person National Insurance 10.04 15.04 20.04 25.04 35.04 Income Tax 14.44 25.74 37.24 48.74 71.74 Child Benefit 0.00 0.00 0.00 0.00 0.00 Family Credit 0.00 0.00 0.00 0.00 0.00 Tax and NICs, less child benefit and family credit, as a percentage of gross earnings 16.3 20.4 22.9 24.6 26.7 Net Income 125.52 159.22 192.72 226.22 293.22 Equivalised Net Income 205.77 261.01 315.93 370.85 480.68 Lone Parent (1 child aged 4 years) National Insurance 10.04 15.04 20.04 25.04 35.04 Income Tax 9.16 20.46 31.96 43.46 66.46 Child Benefit 17.10 17.10 17.10 17.10 17.10 Family Credit 32.70 9.11 0.00 0.00 0.00 Tax and NICs, less child benefit and family credit, as a percentage of gross earnings -20.4 4.6 14.0 17.1 21.1 Net Income 180.59 190.70 215.10 248.60 315.60 Equivalised Net Income 228.60 241.40 272.27 314.68 399.49 Lone Parent (2 children aged 4 years and 6 years) National Insurance 10.04 15.04 20.04 25.04 35.04 Income Tax 9.16 20.46 31.96 43.46 66.46 Child Benefit 26.10 26.10 26.10 26.10 26.10 Family Credit 44.75 21.16 0.00 0.00 0.00 Tax and NICs, less child benefit and family credit, as a percentage of gross earnings -34.4 -5.9 10.4 14.1 18.9 Net Income 201.64 211.75 224.10 257.60 324.60 Equivalised Net Income 201.64 211.75 224.10 257.60 324.60 Single Earner Married Couple (1 child aged 4 years) National Insurance 10.04 15.04 20.04 25.04 35.04 Income Tax 9.16 20.46 31.96 43.46 66.46 Child Benefit 11.05 11.05 11.05 11.05 11.05 Family Credit 32.70 9.11 0.00 0.00 0.00 Tax and NICs, less child benefit and family credit, as a percentage of gross earnings -16.4 7.7 16.4 19.2 22.6 Net Income 174.54 184.65 209.05 242.55 309.55 Equivalised Net Income 147.92 156.49 177.16 205.55 262.33 Single Earner Married Couple (2 children aged 4 and 6) National Insurance 10.04 15.04 20.04 25.04 35.04 Income Tax 9.16 20.46 31.96 43.46 66.46 Child Benefit 20.05 20.05 20.05 20.05 20.05 Family Credit 44.75 21.16 0.00 0.00 0.00 Tax and NICs, less child benefit and family credit, as a percentage of gross earnings -30.4 -2.9 12.8 16.2 20.4 Net Income 195.59 205.70 218.05 251.55 318.55 Equivalised Net Income 140.72 147.99 156.87 180.97 229.17 The figures in the table are weekly amounts for the 1997–98 tax year. They assume that the earner in the household is working over 30 hours a week for family credit purposes.
The standard McClements scales have been used to determine equivalised income. This is the same process that is used in the DSS's Households Below Average Income publication.
Income tax and NICs, less child benefit and family credit, are shown as a percentage of gross earnings, with negative figures where the family is a net gainer overall from direct taxes and benefits.
Some of these families may also be entitled to housing benefit and council tax benefit. However, as this will depend upon the composition of the housing costs (between mortgage payments, council tax, and rent) housing benefit and council tax benefit has been left out of these figures.