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Community Charge

Volume 175: debated on Thursday 28 June 1990

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To ask the Secretary of State for Social Security what will be the effect of a community charge levied at (a) £350 and (b) £450 on the replacement ratios, expressed as out-of-work spending power divided by in-work spending power, of unemployed people under 25 years, living with their parents, and offered jobs at (a) £80 a week, (b) £100 a week and (c) £120 a week, assuming work expenses averaging £10 a week.

[holding answer 5 June 1990]: The information is listed in the table. It should be noted that the results in the table remain arbitrary. They cannot reflect, except by chance, the actual circumstances of particular people and cannot claim to be representative of the population at large.

Replacement ratios
Gross earnings per week £Community charge £350 per cent.Community charge £450 per cent.
804343
1003636
1203031

Notes:—

1. The methods and assumptions are those used in the published Tax/Benefit Model Tables but in this example it has been assumed that no rent is payable.

2. Rounded to the nearest per cent.

To ask the Secretary of State for Social Security what will be the effect of a community charge levied at (a) £350 and (b) £450 on the replacement ratios expressed as out-of-work spending power divided by in-work spending power, of a teenage, single mother with one child under five years, living with her parents, and offered a job at (a) £60 a week, (b) £80 a week, and (c) £100 a week, assuming fares to work and child-care costs totalling £50 a week.

[holding answer 5 June 1990]: The information is listed in the table. It should be noted that the results in the table remain arbitrary. They cannot reflect, except by chance, the actual circumstances of particular people and cannot claim to be representative of the population at large.

Replacement ratios
Gross earnings per week £Community charge £350 per cent.Community charge £450 per cent.
605656
805454
1005152

Notes:

1. The methods and assumptions are those used in the published Tax/Benefit Model Tables but in this example it has been assumed that no rent is payable.

2. Rounded to the nearest per cent.

To ask the Secretary of State for Social Security what will be the effect of a community charge levied at (a) £350 and (b) £450 on the replacement ratios, expressed as out-of-work spending power divided by in-work spending power, of an unemployed man with non-earning wife and two children under five years, a mortgage of £40,000 and work expenses averaging £10 a week, assuming offer wages of £120, £140, £160, £180, £200, £220, £240, £260, £280 and £300 a week.

[holding answer 5 June 1990]: The information is listed in the table. It should be noted that the results in the table remain arbitrary. They cannot reflect, except by chance, the actual circumstances of particular people and cannot claim to be representative of the population at large.

Replacement ratios
Gross earnings per week £Community charge £350 per cent.Community charge £450 per cent.
120264268
140240243
160221223
180177178
200144145
220119123
240102105
2608991
2807880
3007072

Notes:

1. The methods and assumptions are those used in the published Tax/Benefit Model Tables but in this example mortgage interest payments were calculated assuming payment over 25 years and an interest rate of 15·4 per cent.

2. Rounded to the nearest per cent.