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Incomes

Volume 450: debated on Tuesday 24 October 2006

To ask the Chancellor of the Exchequer (1) what percentage of families in receipt of in-work benefits and housed by a local authority or social landlord in which (a) one and (b) two parents moved into work from (i) unemployment and (ii) part-time work increased their income in 2005-06; and if he will make a statement; (95921)

(2) what percentage of people in receipt of in-work benefits who moved from unemployment into work in 2005-06 increased their income; and if he will make a statement;

(3) what percentage of households in receipt of in-work benefits where one parent moved from part-time work, up to 16 hours per week, into full-time work in 2005-06 increased their income; and if he will make a statement;

(4) what percentage of households in receipt of in-work benefits where one parent moved from unemployment into work in 2005-06 increased their income; and if he will make a statement;

(5) what percentage of people in receipt of in-work benefits who increased their working hours from up to 16 hours per week to full-time work increased their income in 2005-06; and if he will make a statement.

Data sources do not exist with which to answer these questions directly.

Any individual moving into work from unemployment or increasing their gross in-work income by increasing hours worked will see an increase in net income after taxes and benefits if their replacement rate and marginal deduction rates are less than 100 per cent.

Estimated replacement rates and marginal deduction rates for a range of individuals in specific family types are published annually by DWP in "Tax Benefit Model Tables". The latest tables show no meaningful cases where marginal deduction rates for those eligible for in-work benefits are 100 per cent. or more. Replacement ratios likewise are less than 100 per cent. in the vast majority of circumstances.