§ Mr. WillettsTo ask the Secretary of State for Social Security if he will provide illustrative examples of cases where taxes and benefits interact to produce a replacement ratio of(a) 70 per cent. and above, (b) 80 per cent. and above, (c) 90 per cent. and above, and (d) 100 per cent. and above on the same basis as figure 36 in the departmental report, Cm 4614, p.80. [120383]
§ Mr. RookerReplacement ratios in Figure 36 of the latest departmental report were calculated by micro-simulation modelling, using a sample of households from the 1996–97 Family Resources Survey. The examples are drawn from the sample underpinning the latest estimates, for 1999–2000. They are shown by 10 per cent. bands. As in Figure 36, the examples are for the head of household only where the head of the household works 30 hours or more a week, and are based on income levels after housing costs.
70 per cent. to 79 per cent. ratio: a single person with no children and an in work income after income tax (£5), National Insurance contributions (£5) and housing costs (£41) of £71 per week, and an income out of work from contributory Jobseeker's Allowance of £51 (replacement ratio 73 per cent.).
80 per cent. to 89 per cent. ratio: a single person with no children and an in work income after income tax (£4), National Insurance contributions (£5) and housing costs (£48) of £64 per week, and an income out of work from contributory Jobseeker's Allowance of £51 (replacement ratio 81 per cent.).
90 per cent. to 99 per cent. ratio: the head of household in a benefit unit with two earners and two children and a combined in work income of £389 per week, after income tax (£33), National Insurance contributions (£23) and housing costs (£45), and including Child Benefit (£24) and Family Credit (£4), and an out of work income of £271 per week, including contributory Jobseeker's Allowance (£51), Child Benefit (£24), Family Credit (£78) and the partner's original earnings (£172). (replacement ratio 94 per cent.).
100 per cent. + ratio: the head of household in a couple benefit unit with one earner and one child and a combined in work income of £4 per week, after income tax (£18), 41W National Insurance contributions (£13) and housing costs (£217), and including Child Benefit (£14), and an out of work income of £7 per week, including contributory Jobseeker's Allowance (£51), income-based Jobseeker's Allowance (£159), Child Benefit (££14). (replacement ratio 186 per cent.).