§ Mr. KirkwoodTo ask the Secretary of State for Social Security if she will list for (i) a lone mother with two children aged under 11 years and (ii) a married couple with two children aged under 11 years, gross weekly earnings and net week incomes taking into account child benefit and family credit/working families tax credit, income tax and NICs in January 1998, at (1) 50 per cent., (2) 75 per cent. and (3) 100 per cent. of average (A) female and (B) male manual earnings, assuming(a) the existing tax and benefit systems, (b) that working families tax credit was in place and (c) that the lone mothers had child care costs of £78 a week in each case. [52333]
§ Mr. DenhamThe information is set out in the tables.
189W
Lone parent with two children aged under 11 and child care costs of £78 per week £ Net Income Gross earnings per week Income Tax NICs Take home pay Family Credit Housing Benefit Council Tax Benefit Before housing costs After housing costs (b) Working Families Tax Credit 210.00 21.78 15.88 172 34 98 62 0 0 291.71 159.30 157.50 9.88 10.63 136.99 118.06 2.11 0 277.91 145.50 105.00 0 5.38 99.62 138.61 13.04 0 272.02 139.61
Married couple with two children aged under 11 and no child care costs £ Net income Gross earnings per week Income Tax NICs Take home pay Family Credit Housing Benefit Council Tax Benefit Before housing costs After housing costs (a) Family Credit 330.00 49.38 27.88 252.74 0 0 0 273.49 215.88 247.50 30.41 19.63 197.46 1.38 0 0 219.59 161.98 165.00 11.43 11.38 142.19 40.07 7.6 1.09 211.70 154.09 (b) Working Families Tax Credit 330.00 49.38 27.88 252.74 0 0 0 273.49 215.88 247.50 30.41 19.63 197.46 30.20 0 0 248.41 190.80 165.00 11.43 11.38 142.19 60.60 0 0 223.54 165.93 Notes:
1. All figures are at 1998–99 prices. (This is consistent with published documents and previous replies to questions on Working Families Tax Credit (WFTC))
2. To reflect the current system as far as possible figures relate to July 1998, so both family types are assumed to receive standard rates of Child Benefit and the family premium in Housing Benefit and Council Tax Benefit. Net income therefore includes Child Benefit of £20.75 per week for both family types
3. Gross earnings are based on average full-time manual earnings taken from the April 1997 New Earnings Survey, uprated to July 1998 levels
4. The non-contracted-out rate of National Insurance Contributions is assumed
5. Housing Benefit and Council Tax Benefit amounts are based on average local authority rent of £45.01 per week and council tax of £9.40 for the lone parent and £12.60 for the married couple
6. 'After housing costs' includes rent, council tax and child care costs, where applicable
7. It is assumed that the earner is working at least 30 hours per week and is therefore entitled to the 30 hour premium in Family Credit/WFTC worth £10.80 per week
8. A number of other changes to the tax and benefit system, as announced in the Budget, will be in place by the time the WFTC is introduced. This means that the amounts above are not the actual amounts that will be received (in 1998 prices) by these family types in October 1999