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Personal Incomes

Volume 921: debated on Thursday 2 December 1976

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asked the Secretary of State for Social Services if he will bring up to date the reply given to the hon. Member for Norfolk, North on 28th January 1976, Official Report, columns 252–4, comparing net weekly spending power at different earnings levels and from each of supplementary benefit, invalidity benefit and non-contributory invalidity pensions, assuming earnings levels today of £45, £55 and £65 and quoting for families with each of four and eight children.

The following table brings up to date the information supplied in answer to the hon. Member on 28th January 1976. I have assumed that in asking for the reply to his Question to be brought up to date the hon. Member's reference to a family with eight children was intended to be a reference to a family with 10 children for which figures were previously provided. The definition of net weekly spending power and the basic assumptions are as in the previous answer, except that working expenses are assumed to be £1·75; rent and rates are assumed to be £5·38 and £2·18 respectively, and, where invalidity pension is in payment, it has been assumed that an invalidity allowance of £2 is also payable. By providing these figures at the instance of the hon. Gentleman I must not be taken to imply that the cases selected and the assumptions made are in any way representative. In particular, apart from the question of take-up in regard to means-tested benefits, only a very small proportion of beneficiaries have four, let alone ten, dependent children in their families.

MARRIED COUPLE WITH FOUR CHILDREN AGED 3,8,11 AND 16

Earnings/Benefit

Fam

Tax

NI contributions

FIS

Rent

Rent rebate

Rates

Rate rebate

Work expenses

Free School meals

Free welfare milk

Net weekly spending power

£££££££££££££
(a) Earnings—
£4545·004·502·322·591·505·384·022·181·561·752·250·6745·28
£5555·004·505·823·165·382·322·180·991·751·500·6746·69
£6565·004·509·323·745·380·622·180·391·750·6748·81
(b) Receiving supplementary allowance 44·814·505·382·182·250·6744·67
(c) Receiving invalidity benefit51·804·505·382·862·181·1852·78
(d) Receiving non-contributory invalidity pension40·104·505·385·382·182·072·250·6747·41

MARRIED COUPLE WITH 10 CHILDREN AGED 1,3,5,7,8,9,11,13,15,16

Earnings/Benefit

Fam

Tax

NI contributions

FIS

Rent

Rent rebate

Rates

Rate rebate

Work expenses

Free School meals

Free welfare milk

Net weekly spending power

£££££££££££££
(a) Earnings—
£4545·0013·502·5910·505·385·382·182·181·756·001·3472·00
£5555·0013·503·165·505·385·382·182·181·756·001·3476·43
£6565·0013·501·983·740·505·385·042·181·891·756·001·3478·24
(b) Receiving supplementary allowance 65·4613·505·382·186·001·3478·74
(c) Receiving invalidity benefit87·5013·505·380·722·180·4394·59
(d) Receiving non-contributory invalidity pension75·8013·505·382·712·181·1385·58