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Family Incomes

Volume 959: debated on Thursday 30 November 1978

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asked the Secretary of State for Social Services if he will now bring up to date the net weekly spending power figures published in reply to the hon. Member for Norfolk, North (Official Report, 22nd November 1977 and 24th July 1978), showing the relative financial position in and out of work for each family grouping, on the assumption that earnings or previous earnings were £30, £35, £45, £55, £65, £75, £85, £95, and £105 per week, using the new rates of benefits and the new benefit levels due to take effect in November, assuming that the taxpayer is in each case contracted into the new State pension scheme, and including examples for a family with three children as well as for families with each of one, two and four children; and if he will also show in each case the maximum number of weeks for which tax refunds could be payable during sickness or unemployment.

pursuant to his reply [Official Report, 9th November 1978; Vol. 957, c. 334–5], gave the following answer:The information requested is set out in the tables below. The assumptions made about the ages of the children and housing and work expenses are shown at the head of each table. Income tax refunds have not been included as part of net weekly spending power of the unemployed man, for the reason given in the reply to the hon. Member on 15th October 1976–[Vol. 917, c.

245–50.] The approximate weekly amounted such refunds, where payable, would, however, now be as follows:

to show in each case the maximum number of weeks for which tax refunds could be payable and could only be obtained at disproportionate cost.

Other assumptions made to compile the tables are as follows:

1. For married couples, the wife has no personal income (apart from child benefit, where appropriate) from earnings or social security benefits.

2. There have been no previous spells of unemployment or sickness which would affect the amount of unemployment benefit and earnings-related supplement payable.

3. Means-tested benefits are taken up in full by working and unemployed families. In the

TABLE 1
SINGLE PERSON: RENT £5·30; RATES £1·95; WORK EXPENSES £2·10

Employed

Normal earnings

Tax

N.I.

Rent rebate

Rate rebate

Net weekly spending power

££££££
302·761·952·711·0119·66
354·152·281·860·7121·79
457·452·930·1025·37
5510·753·5831·32
6514·054·2237·38
7517·354·8743·43
8520·655·5349·47
9523·956·1855·52
10527·256·8261·58

Unemployed (Weeks 3–28)

former earnings

U.B.

Rent rebate

Rate rebate

Net weekly spending power

£

£

£

£

£

3020·224·941·7319·64
3521·544·611·6320·53
4522·874·281·5221·42
5524·193·951·4222·31
6525·513·621·3123·19
7526·833·291·2024·07
8528·153·031·1225·05
9529·472·801·0426·06
10530·792·580·9627·08

TABLE 2
MARRIED COUPLE: RENT £5·30; RATES £1·95; WORK EXPENSES £2·10

Employed

Normal earnings

Tax

N.I.

Rent rebate

Rate rebate

Net weekly spending power

£

£

£

£

£

£

300·121·955·301·9325·81
351·372·284·291·5327·82
453·962·932·240·8431·84
557·263·580·540·2435·59
6510·564·2240·87
7513·864·8746·92
8517·165·5352·96
9520·466·1859·01
10523·766·8265·07

case of family income supplement (FJS), where entitlement existed while at work, payment continues for the first 6 months of unemployment.

4. There are no tax allowances apart from personal allowances.

The tables relate only to the particular illustrative situations quoted, and have no general application and no validity if quoted out of context without stating the assumptions used.

Unemployed (Weeks 3–28)

Former earnings

U.B.

Rent rebate

Rate rebate

Net weekly spending power

£

£

£

£

£

3025·505·301·9525·50
3526·205·301·9526·20
34532·624·891·7231·98
5533·944·561·6132·86
6535·264·231·5133·75
7536·583·901·4034·63
8537·903·571·2935·51
9539·223·241·1936·40
10540·542·991·1037·38

TABLE 3
MARRIED COUPLE WITH ONE CHILD AGED 3 RENT £6·00; RATES £2· 25; WORK EXPENSES £2·10; CHILD BENEFIT £3·00

Employed

Normal earnings

Tax

N.I.

F.I.S.

Rent rebate

Rate rebate

Free Welfare milk

Net weekly spending power

£

£

£

£

£

£

£

£

301·958·004·851·750·9536·25
350·892·285·504·221·550·9536·70
453·392·930·503·181·200·9537·16
556·633·581·560·6339·63
659·934·2243·50
7513·234·8749·55
8516·535·5355·59
9519·836·1861·64
10523·136·8267·70

Unemployed (Weeks 3–28)

Former earnings

U.B.

F.I.S.

Rent rebate

Rate rebate

Free Welfare milk

Net weekly spending power

£

£

£

£

£

£

£

3027·358·005·511·960·9538·52
3527·355·506·002·160·9536·71
4533·690·505·802·050·9537·74
5536·795·401·9337·87
6537·115·071·8238·75
7538·434·741·7239·64
8539·754·411·6140·52
9541·074·081·5041·40
10542·393·751·4042·29

TABLE 4
MARRIED COUPLE WITH TWO CHILDREN AGED 4 AND 6 RENT £6·30; RATES £2·35; WORK EXPENSES £2·10; CHILD BENEFIT £6·00

Employed

Normal earnings

Tax

N.I.

F.I.S.

Rent rebate

Rent rebate

Free school meals

Free Welfare milk

Net weekly spending power

£

£

£

£

£

£

£

£

£

301·9510·005·421·931·250·9542·85
350·412·287·504·791·731·250·9543·78
452·912·932·503·621·351·250·9544·08
556·003·582·340·901·2545·16
659·304·220·640·301·2548·92
7512·604·8752·78
8515·905·5358·82
9519·206·1864·87
10522·506·8270·93

Unemployed (Weeks 3–28)

Former earnings

U.B.

F.I.S.

Rent rebate

Rate rebate

Feer school meals

Free Welfare milk

Net weekly spending power

£

£

£

£

£

£

£

£

£

3029·2010·005·622·001·250·9546·37
3529·207·506·242·201·250·9544·69
4533·692·506·302·241·250·9544·28
5537·646·012·121·2544·37
6538·965·682·021·2545·26
7540·285·351·911·2546·14
8541·605·021·811·2547·03
9542·924·691·701·2547·91
10544·244·361·591·2548·79

TABLE 5
MARRIED COUPLE WITH THREE CHILDREN AGED 3, 8 AND 12 RENT £6·30; RATES £2·35; WORK EXPENSES £2·10; CHILD BENEFIT £·00

Employed

Normal earnings

Tax

N.I.

F.I.S.

Rent rebate

Rate rebate

Free school meals

Free Welfare milk

Net weekly spending power

£

£

£

£

£

£

£

£

£

301·9512·005·812·062·500·9549·62
352·289·505·181·862·500·9550·96
452·262·934·503·931·462·500·9551·40
555·143·582·951·122·500·9552·05
658·444·221·250·522·5054·86
7511·744·8756·64
8515·045·5362·68
9518·346·1868·73
10521·646·8274·79

Unemployed (Weeks 3–28)

Former earnings

U.B.

F.I.S.

Rent rebate

Rate rebate

Free school meals

Free Welfare milk

Net weekly spending power

£

£

£

£

£

£

£

£

3031·0512·005·541·972·500·9554·36
3531·059·506·172·172·500·9552·69
4533·694·506·302·352·500·9550·64
5539·496·302·262·5050·90
6540·816·102·152·5051·91
7542·135·772·052·5052·80
8543·455·441·942·5053·68
9544·775·111·842·5054·57
10546·094·781·732·5055·45

TABLE 6
MARRIED COUPLE WITH FOUR CHILDREN AGED 3, 8, 11 AND 16 RENT £7·20; RATES £2 ·70; WORK EXPENSES £2·10; CHILD BENEFIT £12·00

Employed

Normal earnings

Tax

N.I.

F.I.S.

Rent rebate

Rate rebate

Free school meals

Free Welfare milk

Net weekly spending power

£

£

£

£

£

£

£

£

£

301·9513·506·862·433·750·9555·54
352·2811·506·112·193·750·9557·22
451·472·936·504·861·793·750·9558·45
554·093·581·503·841·453·750·9558·82
657·394·222·390·943·750·9561·42
7510·694·870·690·343·7564·22
8513·995·5365·48
9517·296·1871·53
10520·596·8277·59

Unemployed (Weeks 3–28)

Former earnings

U.B.

F.I.S.

Rent rebate

Rate rebate

Free school meals

Free Welfare milk

Net weekly spending power

£

£

£

£

£

£

£

£

3032·9013·506·132·203·750·9561·53
3532·9011·506·632·363·750·9560·19
4533·696·507·202·703·750·9556·89
5541·181·507·062·503·750·9559·04
6542·667·072·503·750·9559·03
7543·986·742·393·7558·96
8545·306·412·293·7559·85
9546·626·082·183·7560·73
10547·945·752·083·7561·62
N.I. = National Insurance contribution.
U.B. = Unemployment Benefit.
F.l.S. = Family Income Supplement.