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Family Incomes

Volume 960: debated on Friday 15 December 1978

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asked the Secretary of State for Social Services if he will publish figures similar to those given in

TABLE 1
SINGLE PERSON:
RENT £5·30; RATES £1·95
Former earningsUB£Rent rebate£Rate rebate£Net weekly spending power£
All levels15·755·301·9515·75
TABLE 2
MARRIED COUPLE:
RENT £5·30; RATE; £1·95
Former earningsUB£Rent rebate£Rate rebate£Net weekly spending power£
All levels25·505·301·9525·50
TABLE 3
MARRIED COUPLE WITH ONE CHILD AGED 3:
RENT £6·00; RATES £2·35; CHILD BENEFIT £3·00
Former earningsUB£FIS£Rent rebate£Rate rebate£Free welfare milk£Net weekly spending power£
£30·0027·358·005·511·960·9538·52
£35·0027·355·506·002·160·9536·71
£45·0027·350·506·002·250·9531·80
Above £45·0027·356·002·250·9531·30
TABLE 4
MARRIED COUPLE WITH TWO CHILDREN AGED 4 AND 6:
RENT £6·30; RATES £2·35; CHILD BENEFIT £6·00
Former earningsUB£FIS£Rent rebate£Rate rebate£Free school milk£Free welfare milk£Net weekly spending power£
£30·0029·2010·005·622·001·250·9546·37
£35·0029·207·506·242·201·250·9544·69
£45·0029·202·506·302·351·250·9539·90
£50.00 and above29·206·302·351·250·9537·40

reply to the hon. Member for Norfolk, North—[ Official Report, 30th November, c. 298–306.]—showing the net weekly spending power of each family group during the first six months of unemployment, but assuming that there is no entitlement to earnings related supplement.

The information requested is set out in the tables below. The assumptions made about the ages of the children and housing expenses are shown at the head of each table. Other assumptions are as in my reply to the hon. Member of 30th November 1978.A further assumption is that, for unemployment benefit purposes, class 1 contributions in the relevant tax year have been paid on earnings, or credited, sufficient to give entitlement to flat-rate benefit only but that, for the purpose of calculating entitlement to family income supplement, earnings immediately prior to unemployment have been in the range of £30 to £105. The tables therefore relate only to the particular illustrative situa

TABLE 5
MARRIED COUPLE WITH THREE CHILDREN AGED 3,8 AND 12:
RENT £6·30: RATES £2·35; CHILD BENEFIT £9·00

Former earnings£

UB

SB

FIS

Rent rebate

Rate rebate

Free school meals

Free welfare foods

Net weekly spending power

££££££££
£30·0031·0512·005·541·972·500·9554·36
£35·0031·059·506·172·172·500·9552·69
£45·0031·054·506·302·352·500·9548·00
£55·00 and above31·0510·102·500·9544·95
12·005·541·972·500·9554·36
£35·0031·0519·506·172·172·500·9552·69
£45·0031·054·506·302·352·500·9548·00
£55·00 and above31·0510·102·500·9544·95

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

Former earnings

UB£

SB£

FIS£

Rent rebate£

Rate rebate£

Free school meals£

Free welfare foods£

Net weekly spending power£

£30·0032·9013·506·132·203·750·9561·53
£35·0032·9011·506·632·363·750·9560·19
£45·0032·906·507·202·703·750·9556·10
£55·0032·9014·551·503·750·9555·75
£57·00 and above32·9016·053·750·9555·75
UB=Unemployment Benefit.
SB=Supplementary Benefit.
F1S=Family Income Supplement.

tions quoted, and have no general application and no validity if quoted out of context without stating the assumptions used.

asked the Secretary of State for Social Services if he will publish figures showing the net weekly spending power for families with each of two children aged 16 and 14 years, three children aged 16, 14 and 12 years, and four children aged 16, 14, 12 and 10 years, assuming that the parents are dependent on supplementary benefits plus disregards bringing their total income up to 120 per cent. of their supplementary benefit entitlement levels, and also taking into account the value of free school meals.

120 per cent. of supplementary benefit entitlement, apart from rent, plus the value of free school meals for the families specified is £53·80, £62·91 and £70·52.

asked the Secretary of State for Social Services what increase in net weekly spending power a man with a wife and two children would receive if his gross wage was increased by 5 per cent. if his previous earnings were £50, £60, £70, £80, £90 or £100 per week, making the same assumptions as in the Answer to the Question of the hon. Member for North Norfolk,Official Report,30th November, c. 298; and if also he will state the percentage increase in each case.

As in earlier replies to similar Questions by the hon. Member, the comparisons of net weekly spending power which involve yearly wage increases and changes in tax and benefit levels have been made over a past period of a year. The figures given in the table below therefore compare the net weekly spending power of a man with earnings in November 1977 of the various amounts requested with his position a year later when his earnings had been increased by 5 per cent. The table is based on standard assumptions, for example as to housing and work expenses, and has no general validity.

MARRIED COUPLE WITH TWO CHILDREN AGED 4 AND 6

Earnings

Tax

National insurance contribution

Child benefit

Rent

Rent rebate

Rates

Rate rebate

Work expenses

Free school meals

Free welfare milk

Net weekly spending power

Percentage increase in net weekly spending power

November—
197750·005·092·882·505·602·672·201·082·001·250·8140·5412
197852·505·163·416·006·302·772·351·372·101·250·9545·52
197760·008·493·452·505·600·972·200·482·001·2543·4611
197863·008·644·096·006·300·982·350·452·101·2548·17
197770·0011·894·022·505·602·2046·7911
197873·5012·094·786·006·302·352·1051·88
197780·0015·294·602·505·602·202·0052·8110
197884·0015·575·466·006·302·352·1058·22
197790·0018·695·182·505·602·202·0058·8310
197894·5019·026·146·006·302·352·1064·59
1977100·0022·095·752·505·602·202·0064·869
1978105·0022·506·826·006·302·352·1070·93
NOTES
The assumptions made about the ages of the children, the housing expenses for this size of family and the work expenses are shown in the table. It has also been assumed that:—
(i) the couple have no other personal income;
(ii) national insurance contributions are payable at the non-contracted out rate;
(iii) there are no tax allowances apart from personal tax allowances; and
(iv) means-tested benefits are taken up in full.