§ Mr. AmessTo ask the Secretary of State for Social Security if she will list the marginal deduction rates that will apply from October 1999 to a married couple receiving(a) the working families tax credit, (b) housing benefit and (c) council tax benefit with gross weekly earnings of (i) up to £49, (ii) £50£299, (iii) £100£149, (iv) £150£199, (v) £200-£249, (vi) £250£299 and (vii) £300 and over; and what are the numbers expected to fall into each category. [45999]
§ Dawn PrimaroloI have been asked to reply.
The Working Families Tax Credit will be withdrawn at a rate of 55p for every £1 of income, net of income tax and National Insurance Contributions (NICs), over £90 a week. Housing benefit is withdrawn at a rate of 65p in every £1 of net income (including Working Families Tax Credit) over an 'applicable amount' (which depends on the composition of the recipient family). Council tax benefit is withdrawn at a rate of 20p in every £1 of net income (including Working Families Tax Credit, but excluding housing benefit) over an 'applicable amount' (which depends on the composition of the family).
The exact marginal deduction rate a given family will face will depend on a range of factors, in addition to the level of their earnings. These include the rate of income tax they face, the rate of NICs they pay, and the combination of benefits they receive—which will in turn depend on the number and age of children in the family and the level of their rent and council tax.
Available estimates of the number of families facing high marginal deduction rates can be found in table 3.3 of the "Financial Statement and Budget Report".