To ask the Secretary of State for Social Services (1) if he will publish figures, similar to those in his Department's tax-benefit model tables, comparing net weekly spending power for a lone mother with two children aged four and six years, in each of the following circumstances (a) not working, after one year on benefit, (h) earning £20 a week from part-time work, (c) earning £40 a week from part-time work and (d) working full time and earning (i) £60, (ii) £70, (iii) £80, (iv) £90, (v) £100, (vi) £110 and (vii) £120 per week under the tax and insurance rates announced in the Budget of 15 March, and the benefit system which will be implemented in April;(2) if he will publish tables, similar to those in his Department's tax-benefit model table, showing net weekly spending power for each of a single wage married couple (i) with two children aged four and six years and (ii) with three children aged three, eight and 11 years earning
(a) £60, (b) £70, (c) £80, (d) £90, (e) £100, (f) £110, (g) £120, (h) £130, (i) £140, (j) £150, (k) £160 and (l) £170 under the tax and insurance rates announced in the Budget on 15 March and the benefit system which will be implemented in April.
[holding answer 16 March 1988]: The information requested is set out in the tables. It should be
| New lax and benefit system from April 1988—lone working mother with two children aged 4 and 6 (assuming average local authority rent and rates) | ||||||||||
| Gross earnings | Tax | NI | Family credit | Child benefit | Rent | Rent rebate | Rates | Rate rebate | Fares to work | Net weekly spending power |
| 60·00 | 0·00 | 3·00 | 40·32 | 19·40 | 19·12 | 0·00 | 9·80 | 0·00 | 5·85 | 81·95 |
| 70·00 | 0·00 | 4·90 | 34·65 | 19·40 | 19·12 | 0·00 | 9·80 | 0·00 | 5·85 | 84·38 |
| 80·00 | 0·31 | 5·60 | 28·35 | 19·40 | 19·12 | 0·00 | 9·80 | 0·00 | 5·85 | 87·07 |
| 90·00 | 2·81 | 63·0 | 23·59 | 19·40 | 19·12 | 0·00 | 9·80 | 0·00 | 5·85 | 89·11 |
| 100·00 | 5·31 | 7·00 | 18·83 | 19·40 | 19·12 | 0·00 | 9·80 | 0·00 | 5·85 | 91·15 |
| 110·00 | 7·81 | 9·90 | 15·61 | 19·40 | 19·12 | 0·00 | 9·80 | 0·00 | 5·85 | 92·53 |
| 120·00 | 10·31 | 10·80 | 10·99 | 19·40 | 19·12 | 0·00 | 9·80 | 0·00 | 5·85 | 94·51 |
| New tax and benefit system—single wage married couple with two children aged 4 and 6 | ||||||||||
| Gross earnings | Tax | NI | Family credit | Child benefit | Rent | Rent rebate | Rates | Rate rebate | Fares to work | Net weekly spending power |
| 60·00 | 0·00 | 3·00 | 40·32 | 14·50 | 19·12 | 4·36 | 9·80 | 1·87 | 5·85 | 83·28 |
| 70·00 | 0·00 | 4·90 | 34·65 | 14·50 | 19·12 | 2·78 | 9·80 | 1·39 | 5·85 | 83·65 |
| 80·00 | 0·31 | 5·60 | 28·35 | 14·50 | 19·12 | 1·02 | 9·80 | 0·85 | 5·85 | 84·04 |
| 90·00 | 2·81 | 6·30 | 23·59 | 14·50 | 19·12 | 0·00 | 9·80 | 0·00 | 5·85 | 84·21 |
| 100·00 | 5·31 | 7·00 | 18·83 | 14·50 | 19·12 | 0·00 | 9·80 | 0·00 | 5·85 | 86·25 |
| 110·00 | 7·81 | 9·90 | 15·61 | 14·50 | 19·12 | 0·00 | 9·80 | 0·00 | 5·85 | 87·63 |
| 120·00 | 10·31 | 10·80 | 10·99 | 14·50 | 19·12 | 0·00 | 9·80 | 0·00 | 5·85 | 89·61 |
| 130·00 | 12·81 | 11·70 | 6·37 | 14·50 | 19·12 | 0·00 | 9·80 | 0·00 | 5·85 | 91·59 |
| 140·00 | 15·31 | 12·60 | 1·75 | 14·50 | 19·12 | 0·00 | 9·80 | 0·00 | 5·85 | 93·57 |
noted that the results are hypothetical in two senses. First, the results are based on average local authority housing charges and do not reflect the wide variety of rents and domestic rates that people actually pay. Secondly, the other assumptions used are those set out in "Impact of the Reformed Structure of Income Related Benefits," October 1987.
New tax and benefit system from April 1988—lone mother with two children aged 4 and 6 (assuming average local authority rents and rates)
| |||
Not working—1 year on benefit
| Working part-time—£20 earnings
| Working part-time—£40 earnings
| |
£
| £
| £
| |
| Income support | 45·35 | 40·35 | 20·35 |
| Gross earnings | 0·00 | 20·00 | 40·00 |
| Tax | 0·00 | 0·00 | 0·00 |
| National Insurance | 0·00 | 0·00 | 0·00 |
| Fares to work | 0·00 | 2·92 | 2·92 |
| Rent | 19·12 | 19·12 | 19·12 |
| Rent rebate | 19·12 | 19·12 | 19·12 |
| Rates | 9·80 | 9·80 | 9·80 |
| Rate rebate | 6·42 | 6·42 | 6·42 |
| Child benefit | 19·40 | 19·40 | 19·40 |
| Free school meals | 2·55 | 2·55 | 2·55 |
| Free welfare milk | 1·83 | 1·83 | 1·83 |
| Net weekly spending power | 65·75 | 77·83 | 77·83 |
Gross earnings
| Tax
| NI
| Family credit
| Child benefit
| Rent
| Rent rebate
| Rates
| Rate rebate
| Fares to work
| Net weekly spending power
|
| 150·00 | 17·81 | 13·50 | 0·00 | 14·50 | 19·12 | 0·00 | 9·80 | 0·00 | 5·85 | 98·42 |
| 160·00 | 20·31 | 14·40 | 0·00 | 14·50 | 19·12 | 0·00 | 9·80 | 0·00 | 5·85 | 105·02 |
| 170·00 | 22·81 | 15·30 | 0·00 | 14·50 | 19·12 | 0·00 | 9·80 | 0·00 | 5·85 | 111·62 |
New tax and benefit system—single wage married couple with three children aged 3, 8, and 11
| ||||||||||
Gross earnings
| Tax
| NI
| Family credit
| Child benefit
| Rent
| Rent rebate
| Rates
| Rate rebate
| Fares to work
| Net weekly spending power
|
| 60·00 | 0·00 | 3·00 | 51·72 | 21·75 | 19·12 | 2·70 | 9·80 | 1·36 | 5·85 | 99·76 |
| 70·00 | 0·00 | 4·90 | 46·05 | 21·75 | 19·12 | 1·12 | 9·80 | 0·88 | 5·85 | 100·13 |
| 80·00 | 0·31 | 5·60 | 39·75 | 21·75 | 19·12 | 0·00 | 9·80 | 0·00 | 5·85 | 100·82 |
| 90·00 | 2·81 | 6·30 | 34·99 | 21·75 | 19·12 | 0·00 | 9·80 | 0·00 | 5·85 | 102·86 |
| 100·00 | 5·31 | 7·00 | 30·23 | 21·75 | 19·12 | 0·00 | 9·80 | 0·00 | 5·85 | 104·90 |
| 110·00 | 7·81 | 9·90 | 27·01 | 21·75 | 19·12 | 0·00 | 9·80 | 0·00 | 5·85 | 106·28 |
| 120·00 | 10·31 | 10·80 | 22·39 | 21·75 | 19·12 | 0·00 | 9·80 | 0·00 | 5·85 | 108·26 |
| 130·00 | 12·81 | 11·70 | 17·77 | 21·75 | 19·12 | 0·00 | 9·80 | 0·00 | 5·85 | 110·24 |
| 140·00 | 15·31 | 12·60 | 13·15 | 21·75 | 19·12 | 0·00 | 9·80 | 0·00 | 5·85 | 112·22 |
| 150·00 | 17·81 | 13·50 | 8·53 | 21·75 | 19·12 | 0·00 | 9·80 | 0·00 | 5·85 | 114·20 |
| 160·00 | 20·31 | 14·40 | 3·91 | 21·75 | 19·12 | 0·00 | 9·80 | 0·00 | 5·85 | 116·18 |
| 170·00 | 22·81 | 15·30 | 0·00 | 21·75 | 19·12 | 0·00 | 9·80 | 0·00 | 5·85 | 118·87 |