To ask the Secretary of State for Social Security, further to his reply to the hon. Member for Derby, South (Mrs. Beckett) Official Report, 13 May, columns 31–34, if he will repeat the figures including (a) columns for the two-parent families showing their net incomes after rent and community charge when on income support, (b) earnings levels for all three families of £180, £190 and £200 a week, (c) child care costs for the lone mother of £70 a week for the four-year-old child, and £20 a week for the six-year-old child and (d) comparable figures for all three families assuming they are owner-occupiers with mortgages of £40,000.
[holding answer 22 July 1991]: Income-related benefits such as family credit and housing benefit provide valuable help for many working families and make it worth while taking up and retaining employment. The social security reforms, and subsequent changes in tax and national insurance have virtually eliminated the worst effects of the poverty trap, so that it is now almost impossible for someone to be worse off as a result of an increase in gross pay.
| Lone parent with 2 children aged 4 and 6 with mortgage and child care costs | |||||||||||
| Earnings per week | Tax | NI | Net mortgage interest | CC | Child care costs | Net earnings | FC | CHB | HB | CCB | Disposable income |
| 60·00 | 0·00 | 1·76 | 75·00 | 9·40 | 90·00 | -116·16 | 57·70 | 21·10 | 0·00 | 0·00 | -37·36 |
| 70·00 | 0·00 | 2·66 | 75·00 | 9·40 | 90·00 | -107·06 | 54·14 | 21·10 | 0·00 | 0·00 | 31·82 |
| 80·00 | 0·00 | 3·56 | 75·00 | 9·40 | 90·00 | -97·96 | 47·77 | 21·10 | 0·00 | 0·00 | -29·09 |
| 90·00 | 0·00 | 4·46 | 75·00 | 9·40 | 9000 | -88·86 | 41·40 | 21·10 | 0·00 | 0·00 | -26·36 |
| 100·00 | ·89 | 5·36 | 75·00 | 9·40 | 90·00 | -80·65 | 35·65 | 21·10 | 0·00 | 0·00 | -23·90 |
| 110·00 | 3·39 | 6·26 | 75·00 | 9·40 | 90·00 | -74·05 | 31·03 | 21·10 | 0·00 | 0·00 | 21·92 |
| 120·00 | 5·89 | 7·16 | 75·00 | 9·40 | 90·00 | -67·45 | 26·41 | 21·10 | 0·00 | 0·00 | -19·94 |
| 130·00 | 8·39 | 8·06 | 75·00 | 9·40 | 90·00 | -60·85 | 21·79 | 21·10 | 0·00 | 0·00 | -17·96 |
| 140·00 | 10·89 | 8·96 | 75·00 | 9·40 | 90·00 | -54·25 | 17·17 | 21·10 | 0·00 | 0·00 | -15·98 |
| 150·00 | 13·39 | 9·86 | 75·00 | 9·40 | 90·00 | -47·65 | 12·55 | 21·10 | 0·00 | 0·00 | -14·00 |
| 160·00 | 15·89 | 10·76 | 75·00 | 9·40 | 90·00 | 41·05 | 7·93 | 21·10 | 0·00 | 0·00 | -12·02 |
| 170·00 | 18·39 | 11·66 | 75·00 | 9·40 | 90·00 | -34·45 | 3·31 | 21·10 | 0·00 | 0·00 | -10·04 |
| 180·00 | 20·89 | 12·56 | 75·00 | 9·40 | 90·00 | -27·85 | 0·00 | 21·10 | 0·00 | 0·00 | -6·75 |
| 190·00 | 23·39 | 13·46 | 75·00 | 9·40 | 90·00 | -21·25 | 0·00 | 21·10 | 0·00 | 0·00 | -0·15 |
| 200·00 | 25·89 | 14·36 | 75·00 | 9·40 | 90·00 | -14·65 | 0·00 | 21·10 | 0·00 | 0·00 | 6·45 |
| Lone parent with 2 children aged 4 and 6 with mortgage | ||||||||||
| Earnings per week | Tax | NI | Net mortgage interest | CC | Net earnings | FC | CHB | HB | CCB | Disposable income |
| 60·00 | 0·00 | 1·76 | 75·00 | 9·40 | -26·16 | 57·70 | 21·10 | 0·00 | 0·00 | 52·64 |
| 70·00 | 0·00 | 2·66 | 75·00 | 9·40 | -17·06 | 54·14 | 21·10 | 0·00 | 0·00 | 58·18 |
| 80·00 | 0·00 | 3·56 | 75·00 | 9·40 | -7·96 | 47·77 | 21·10 | 0·00 | 0·00 | 60·91 |
| 90·00 | 0·00 | 4·46 | 75·00 | 9·40 | 1·14 | 41·40 | 21·10 | 0·00 | 0·00 | 63·64 |
| 100·00 | ·89 | 5·36 | 75·00 | 9·40 | 9·35 | 35·65 | 21·10 | 0·00 | 0·00 | 66·10 |
| 110·00 | 3·39 | 6·26 | 75·00 | 9·40 | 15·95 | 31·03 | 21·10 | 0·00 | 0·00 | 68·08 |
| 120·00 | 5·89 | 7·16 | 75·00 | 9·40 | 22·55 | 26·41 | 21·10 | 0·00 | 0·00 | 70·06 |
| 130·00 | 8·39 | 8·06 | 75·00 | 9·40 | 29·15 | 21·79 | 21·10 | 0·00 | 0·00 | 72·04 |
| 140·00 | 10·89 | 8·96 | 75·00 | 9·40 | 35·75 | 17·17 | 21·10 | 0·00 | 0·00 | 74·02 |
| 150·00 | 13·39 | 9·86 | 75·00 | 9·40 | 42·35 | 12·55 | 21·10 | 0·00 | 0·00 | 76·00 |
| 160·00 | 15·89 | 10·76 | 75·00 | 9·40 | 48·95 | 7·93 | 21·10 | 0·00 | 0·00 | 77·98 |
| 170·00 | 18·39 | 11·66 | 75·00 | 9·40 | 55·55 | 3·31 | 21·10 | 0·00 | 0·00 | 79·96 |
| 180·00 | 20·89 | 12·56 | 75·00 | 9·40 | 62·15 | 0·00 | 21·10 | 0·00 | 0·00 | 83·25 |
The information requested is set out in the tables. It should be noted that the results in the tables 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. The tables use hypothetical rents so they do not reflect the full range of housing costs which people can pay. All other assumptions are as detailed in the published tax benefit model tables.
This reply also updates and replaces figures previously supplied, applying the assumptions in the tax benefit model tables recently published, and corrects typographical errors in the Official Report,13 May, columns 31–34.
Lone parent with two children aged 4 and 6
| £ |
(a) not working, after one year on benefit
| |
| Income Support | 57·65 |
| Child Benefit | 21·10 |
| Rent Rebate | 26·03 |
| Community Charge Benefit | 3·76 |
| Total Net Income | 113·81 |
| Net Income After Rent and Community Charge | 83·03 |
(b) earning £20 per week from part-time earnings
| |
| Earnings | 20·00 |
| Income Support | 52·65 |
| Child Benefit | 21·10 |
| Rent Rebate | 26·03 |
| Community Charge Benefit | 3·76 |
| Total Net Income | 128·81 |
| Net Income After Rent and Community Charge | 98·03 |
Notes:
1. Child Benefit includes One Parent Benefit.
Net Income after Rent and Community Charge includes the notional value of free school meals and welfare foods.
Earnings per week
| Tax
| NI
| Net mortgage interest
| CC
| Net earnings
| FC
| CHB
| HB
| CCB
| Disposable income
|
| 190·00 | 23·39 | 13·46 | 75·00 | 9·40 | 68·75 | 0·00 | 21·10 | 0·00 | 0·00 | 89·85 |
| 200·00 | 25·89 | 14·36 | 75·00 | 9·40 | 75·35 | 0·00 | 21·10 | 0·00 | 0·00 | 96·45 |
Lone parent with 2 children aged 4 and 6 and child care costs Net income after rent and community charge on income supplement 83·08
| |||||||||||
Earnings per week
| Tax
| NI
| Rent
| CC
| Child care
| Net earnings
| EC
| CHB
| HB
| CCB
| Disposable income
|
| 60·00 | 0·00 | 1·76 | 26·03 | 4·70 | 90·00 | -62·49 | 57·70 | 21·10 | 8·03 | 0·00 | 24·34 |
| 70·00 | 0·00 | 2·66 | 26·03 | 4·70 | 90·00 | -53·39 | 54·14 | 21·10 | 4·43 | 0·00 | 26·28 |
| 80·00 | 0·00 | 3·56 | 26·03 | 4·70 | 90·00 | -44·29 | 47·77 | 21·10 | 2·66 | 0·00 | 27·24 |
| 90·00 | 0·00 | 4·46 | 26·03 | 4·70 | 90·00 | -35·19 | 41·40 | 21·10 | 0·88 | 0·00 | 28·19 |
| 100·00 | 0·89 | 5·36 | 26·03 | 4·70 | 90·00 | -26·98 | 35·65 | 21·10 | 0·00 | 0·00 | 29·77 |
| 110·00 | 3·39 | 6·26 | 26·03 | 4·70 | 90·00 | -20·38 | 31·03 | 21·10 | 0·00 | 0·00 | 31·75 |
| 120·00 | 5·89 | 7·16 | 26·03 | 4·70 | 90·00 | -13·78 | 26·41 | 21·10 | 0·00 | 0·00 | 33·73 |
| 130·00 | 8·39 | 8·06 | 26·03 | 4·70 | 90·00 | -7·18 | 21·79 | 21·10 | 0·00 | 0·00 | 35·71 |
| 140·00 | 10·89 | 8·96 | 26·03 | 4·70 | 90·00 | -0·58 | 17·17 | 21·10 | 0·00 | 0·00 | 37·69 |
| 150·00 | 13·39 | 9·86 | 26·03 | 4·70 | 90·00 | 6·02 | 12·55 | 21·10 | 0·00 | 0·00 | 39·67 |
| 160·00 | 15·89 | 10·76 | 26·03 | 4·70 | 90·00 | 12·62 | 7·93 | 21·10 | 0·00 | 0·00 | 41·65 |
| 170·00 | 18·39 | 11·66 | 26·03 | 4·70 | 90·00 | 19·22 | 3·31 | 21·10 | 0·00 | 0·00 | 43·63 |
| 180·00 | 20·89 | 12·56 | 26·03 | 4·70 | 90·00 | 25·82 | 0·00 | 21·10 | 0·00 | 0·00 | 46·92 |
| 190·00 | 23·39 | 13·46 | 26·03 | 4·70 | 90·00 | 32·42 | 0·00 | 21·10 | 0·00 | 0·00 | 53·52 |
| 200·00 | 25·89 | 14·36 | 26·03 | 4·70 | 90·00 | 39·02 | 0·00 | 21·10 | 0·00 | 0·00 | 60·12 |
Lone parent with 2 children aged 4 and 6 Net income after rent and community charge on income support: 83·08
| ||||||||||
Earnings per week
| Tax
| NI
| Rent
| CC
| Net earnings
| EC
| CHB
| HB
| CCB
| Disposable income
|
| 60·00 | 0·00 | 1·76 | 26·03 | 4·70 | 27·51 | 57·70 | 21·10 | 8·03 | 0·00 | 114·34 |
| 70·00 | 0·00 | 2·66 | 26·03 | 4·70 | 36·61 | 54·14 | 21·10 | 4·43 | 0·00 | 116·28 |
| 80·00 | 0·00 | 3·56 | 26·03 | 4·70 | 45·71 | 47·77 | 21·10 | 2·66 | 0·00 | 117·24 |
| 90·00 | 0·00 | 4·46 | 26·03 | 4·70 | 54·81 | 41·40 | 21·10 | 0·88 | 0·00 | 118·19 |
| 100·00 | 0·89 | 5·36 | 26·03 | 4·70 | 63·02 | 35·65 | 21·10 | 0·00 | 0·00 | 119·77 |
| 110·00 | 3·39 | 6·26 | 26·03 | 4·70 | 69·62 | 31·03 | 21·10 | 0·00 | 0·00 | 121·75 |
| 120·00 | 5·89 | 7·16 | 26·03 | 4·70 | 75·76 | 26·41 | 21·10 | 0·00 | 0·00 | 123·73 |
| 130·00 | 8·39 | 8·06 | 26·03 | 4·70 | 82·82 | 21·79 | 21·10 | 0·00 | 0·00 | 125·71 |
| 140·00 | 10·89 | 8·96 | 26·03 | 4·70 | 89·42 | 17·17 | 21·10 | 0·00 | 0·00 | 127·69 |
| 150·00 | 13·39 | 9·86 | 26·03 | 4·70 | 96·02 | 12·55 | 21·10 | 0·00 | 0·00 | 129·67 |
| 160·00 | 15·89 | 10·76 | 26·03 | 4·70 | 102·62 | 7·93 | 21·10 | 0·00 | 0·00 | 131·65 |
| 170·00 | 18·39 | 11·66 | 26·03 | 4·70 | 109·22 | 3·31 | 21·10 | 0·00 | 0·00 | 133·63 |
| 180·00 | 20·89 | 12·56 | 26·03 | 4·70 | 115·82 | 0·00 | 21·10 | 0·00 | 0·00 | 136·92 |
| 190·00 | 23·39 | 13·46 | 26·03 | 4·70 | 122·42 | 0·00 | 21·10 | 0·00 | 0·00 | 143·52 |
| 200·00 | 25·89 | 14·36 | 26·03 | 4·70 | 129·02 | 0·00 | 21·10 | 0·00 | 0·00 | 150·12 |
Married couple with 2 children aged 4 and 6 Net income after rent and community charge on income support: 100·29
| ||||||||||
Earnings per week
| Tax
| NI
| Rent
| CC
| Net earnings
| FC
| CHB
| HB
| CCB
| Disposable income
|
| 60·00 | 0·00 | 1·76 | 26·03 | 9·40 | 22·81 | 57·70 | 15·50 | 10·08 | 3·84 | 109·93 |
| 70·00 | 0·00 | 2·66 | 26·03 | 9·40 | 31·91 | 54·14 | 15·50 | 6·48 | 3·01 | 111·04 |
| 80·00 | 0·00 | 3·56 | 26·03 | 9·40 | 41·01 | 47·77 | 15·50 | 4·71 | 2·60 | 111·59 |
| 90·00 | 0·00 | 4·46 | 26·03 | 9·40 | 50·11 | 41·40 | 15·50 | 2·93 | 2·19 | 112·13 |
| 100·00 | ·89 | 5·36 | 26·03 | 9·40 | 58·32 | 35·65 | 15·50 | 1·33 | 1·82 | 112·62 |
| 110·00 | 3·39 | 6·26 | 26·03 | 9·40 | 64·92 | 31·03 | 15·50 | 0·00 | 1·52 | 112·97 |
| 120·00 | 5·89 | 7·16 | 26·03 | 9·40 | 71·52 | 26·41 | 15·50 | 0·00 | 1·23 | 114·66 |
| 130·00 | 8·39 | 8·06 | 26·03 | 9·40 | 78·12 | 21·79 | 15·50 | 0·00 | 0·93 | 116·34 |
| 140·00 | 10·89 | 8·96 | 26·03 | 9·40 | 84·72 | 17·17 | 15·50 | 0·00 | 0·63 | 118·02 |
| 150·00 | 13·39 | 9·86 | 26·03 | 9·40 | 91·32 | 12·55 | 15·50 | 0·00 | 0·33 | 119·70 |
| 160·00 | 15·89 | 10·76 | 26·03 | 9·40 | 97·92 | 7·93 | 15·50 | 0·00 | 0·04 | 121·39 |
| 170·00 | 18·39 | 11·66 | 26·03 | 9·40 | 104·52 | 3·31 | 15·50 | 0·00 | 0·00 | 123·33 |
| 180·00 | 20·89 | 12·56 | 26·03 | 9·40 | 111·12 | 0·00 | 15·50 | 0·00 | 0·00 | 126·62 |
| 190·00 | 23·39 | 13·46 | 26·03 | 9·40 | 117·72 | 0·00 | 15·50 | 0·00 | 0·00 | 133·22 |
| 200·00 | 25·89 | 14·36 | 26·03 | 9·40 | 124·32 | 0·00 | 15·50 | 0·00 | 0·00 | 139·82 |
Married couple with 2 children aged 4 and 6 with mortgage Net income after mortgage and community charge on income support: 100·29
| ||||||||||
Earnings per week
| Tax
| NI
| Net mortgage interest
| CC
| Net earnings
| FC
| CHB
| HB
| CCB
| Disposable income
|
| 60·00 | 0·00 | 1·76 | 75·00 | 9·40 | -26·16 | 57·70 | 15·50 | 0·00 | 3·84 | 50·88 |
| 70·00 | 0·00 | 2·66 | 75·00 | 9·40 | -17·06 | 54·14 | 15·50 | 0·00 | 3·01 | 55·59 |
| 80·00 | 0·00 | 3·56 | 75·00 | 9·40 | -7·96 | 47·77 | 15·50 | 0·00 | 2·60 | 57·91 |
| 90·00 | 0·00 | 4·46 | 75·00 | 9·40 | 1·14 | 41·40 | 15·50 | 0·00 | 2·19 | 60·23 |
| 100·00 | 0·89 | 5·36 | 75·00 | 9·40 | 9·35 | 35·65 | 15·50 | 0·00 | 1·82 | 62·32 |
| 110·00 | 3·39 | 6·26 | 75·00 | 9·40 | 15·95 | 31·03 | 15·50 | 0·00 | 1·52 | 64·00 |
| 120·00 | 5·89 | 7·16 | 75·00 | 9·40 | 22·55 | 26·41 | 15·50 | 0·00 | 1·23 | 65·69 |
| 130·00 | 8·39 | 8·06 | 75·00 | 9·40 | 29·15 | 21·79 | 15·50 | 0·00 | 0·93 | 67·37 |
| 140·00 | 10·89 | 8·96 | 75·00 | 9·40 | 35·75 | 17·17 | 15·50 | 0·00 | 0·63 | 69·05 |
| 150·00 | 13·39 | 9·86 | 75·00 | 9·40 | 42·35 | 12·55 | 15·50 | 0·00 | 0·33 | 70·73 |
| 160·00 | 15·89 | 10·76 | 75·00 | 9·40 | 48·95 | 7·93 | 15·50 | 0·00 | 0·04 | 72·42 |
| 170·00 | 18·39 | 11·66 | 75·00 | 9·40 | 55·55 | 3·31 | 15·50 | 0·00 | 0·00 | 74·36 |
| 180·00 | 20·89 | 12·56 | 75·00 | 9·40 | 62·15 | 0·00 | 15·50 | 0·00 | 0·00 | 77·65 |
| 190·00 | 23·39 | 13·46 | 75·00 | 9·40 | 68·75 | 0·00 | 15·50 | 0·00 | 0·00 | 84·25 |
| 200·00 | 25·89 | 14·36 | 75·00 | 9·40 | 75·35 | 0·00 | 15·50 | 0·00 | 0·00 | 90·85 |
Married couple with 3 children aged 3, 8 and 11 Net income after rent and community charge on income support: 123·07
| ||||||||||
Earnings per week
| Tax
| NI
| Net mortgage interest
| CC
| Net earnings
| FC
| CHB
| HB
| CCB
| Disposable income
|
| 60·00 | 0·00 | 1·76 | 26·03 | 9·40 | 22·81 | 73·80 | 22·75 | 7·74 | 3·30 | 130·40 |
| 70·00 | 0·00 | 2·66 | 26·03 | 9·40 | 31·91 | 70·24 | 22·75 | 4·14 | 2·47 | 131·51 |
| 80·00 | 0·00 | 3·56 | 26·03 | 9·40 | 41·01 | 63·87 | 22·75 | 2·37 | 2·06 | 132·06 |
| 90·00 | 0·00 | 4·46 | 26·03 | 9·40 | 50·11 | 57·50 | 22·75 | 0·59 | 1·65 | 132·60 |
| 100·00 | ·89 | 5·36 | 26·03 | 9·40 | 58·32 | 51·75 | 22·75 | 0·00 | 1·28 | 134·10 |
| 110·00 | 3·39 | 6·26 | 26·03 | 9·40 | 64·92 | 47·13 | 22·75 | 0·00 | 0·98 | 135·78 |
| 120·00 | 5·89 | 7·16 | 26·03 | 9·40 | 71·52 | 42·51 | 22·75 | 0·00 | 0·69 | 137·47 |
| 130·00 | 8·39 | 8·06 | 26·03 | 9·40 | 78·12 | 37·89 | 22·75 | 0·00 | 0·39 | 139·15 |
| 140·00 | 10·89 | 8·96 | 26·03 | 9·40 | 84·72 | 33·27 | 22·75 | 0·00 | 0·09 | 140·83 |
| 150·00 | 13·39 | 9·86 | 26·03 | 9·40 | 91·32 | 28·65 | 22·75 | 0·00 | 0·00 | 142·72 |
| 160·00 | 15·89 | 10·76 | 26·03 | 9·40 | 97·92 | 24·03 | 22·75 | 0·00 | 0·00 | 144·70 |
| 170·00 | 18·39 | 11·66 | 26·03 | 9·40 | 104·52 | 19·41 | 22·75 | 0·00 | 0·00 | 146·68 |
| 180·00 | 20·89 | 12·56 | 26·03 | 9·40 | 111·12 | 14·79 | 22·75 | 0·00 | 0·00 | 148·66 |
| 190·00 | 23·39 | 13·46 | 26·03 | 9·40 | 117·72 | 10·17 | 22·75 | 0·00 | 0·00 | 150·64 |
| 200·00 | 25·89 | 14·36 | 26·03 | 9·40 | 124·32 | 5·55 | 22·75 | 0·00 | 0·00 | 152·62 |
Married couple with 3 children aged 3, 8 and 11 with mortgage Net income after mortgage and community charge on income support: 123·07
| ||||||||||
Earnings per week
| Tax
| NI
| Net mortgage interest
| CC
| Net earnings
| FC
| CHB
| HB
| CCB
| Disposable income
|
| 60·00 | 0·00 | 1·76 | 75·00 | 9·40 | -26·16 | 73·80 | 22·75 | 0·00 | 3·30 | 73·69 |
| 70·00 | 0·00 | 2·66 | 75·00 | 9·40 | -17·06 | 70·24 | 22·75 | 0·00 | 2·47 | 78·40 |
| 80·00 | 0·00 | 3·56 | 75·00 | 9·40 | -7·96 | 63·87 | 22·75 | 0·00 | 2·06 | 80·72 |
| 90·00 | 0·00 | 4·46 | 75·00 | 9·40 | 1·14 | 57·50 | 22·75 | 0·00 | 1·65 | 83·04 |
| 100·00 | 0·89 | 5·36 | 75·00 | 9·40 | 9·35 | 51·75 | 22·75 | 0·00 | 1·28 | 85·13 |
| 110·00 | 3·39 | 6·26 | 75·00 | 9·40 | 15·95 | 47·13 | 22·75 | 0·00 | 0·98 | 86·81 |
| 120·00 | 5·89 | 7·16 | 75·00 | 9·40 | 22·55 | 42·51 | 22·75 | 0·00 | 0·69 | 88·50 |
| 130·00 | 8·39 | 8·06 | 75·00 | 9·40 | 29·15 | 37·89 | 22·75 | 0·00 | 0·39 | 90·18 |
| 140·00 | 10·89 | 8·96 | 75·00 | 9·40 | 35·75 | 33·27 | 22·75 | 0·00 | 0·09 | 91·86 |
| 150·00 | 13·39 | 9·86 | 75·00 | 9·40 | 42·35 | 28·65 | 22·75 | 0·00 | 0·00 | 93·75 |
| 160·00 | 15·89 | 10·76 | 75·00 | 9·40 | 48·95 | 24·03 | 22·75 | 0·00 | 0·00 | 95·73 |
| 170·00 | 18·39 | 11·66 | 75·00 | 9·40 | 55·55 | 19·41 | 22·75 | 0·00 | 0·00 | 97·71 |
| 180·00 | 20·89 | 12·56 | 75·00 | 9·40 | 62·15 | 14·79 | 22·75 | 0·00 | 0·00 | 99·69 |
| 190·00 | 23·39 | 13·46 | 75·00 | 9·40 | 68·75 | 10·17 | 22·75 | 0·00 | 0·00 | 101·67 |
| 200·00 | 25·89 | 14·36 | 75·00 | 9·40 | 75·35 | 5·55 | 22·75 | 0·00 | 0·00 | 103·65 |