asked the Secretary of State for Social Services what would have been the net spending power of a family on one-half and two-thirds average national earnings, with three children aged under 11 years, in 1973–74 and 1977–78 expressed at current price levels, taking account of family allowances and child benefit, family income supplement, rent and rate rebates and allowances and free school milk.
pursuant to his reply [Official Report, 23rd May 1978; Vol. 950, c. 549], gave the following information:I regret that, because of the disproportionate expense involved, I cannot supply information in the exact form requested by the hon. Member. However, comparable information for a family on one-half and two-thirds national average earnings, with two children under 11 years, is given in the following tables for corresponding dates in 1973–74 and 1977–78. This information is based on
| ONE-HALF NATIONAL AVERAGE EARNINGS (£p) | ||||||
| Date | Weekly earnings | Net weekly spending power | Net weekly spending power at February 1978 prices | |||
| February 1974 | … | … | … | 22·50 | 20·39 | 38·13 |
| February 1978 | … | … | … | 38·50 | 40·16 | 40·16 |
| TWO-THIRDS NATIONAL AVERAGE EARNINGS (£p) | ||||||
| Date | Weekly earnings | Net weekly spending power | Net weekly spending power at February 1978 prices | |||
| February 1974 | … | … | … | 30·00 | 22·18 | 41·48 |
| February 1978 | … | … | … | 51·33 | 41·04 | 41·04 |
Notes on the tables
1. The figures relate to a married couple with two children aged four and six.
2. National average earnings have been taken as £45 a week in February 1974 and as £77 a week in February 1978, the latest date for which a figure is available.
3. Net spending power is defined as gross earnings plus child benefit (family allowance for 1973–74), family income supplement, rent and rate rebates and the value of free school meals and free welfare milk; less tax, employee's national insurance contribution, gross rent and rates and work expenses.
4. The following assumptions have been made:—
Rent
| Rates
| Work expenses
| Value of free school meals
| Value of free welfare milk
| ||
| £ | £ | £ | £ | £ | ||
| February 1974 | … | 3·56 | 1·19 | 0·65 | 0·60 | 0·39 |
| February 1978 | … | 5·60 | 2·20 | 2·00 | 1·25 | 0·81 |