Unemployment Benefit

Mr. Ralph Howell
asked the Secretary of State for Social Services what percentage increase in pay would be necessary for a person whose net weekly spending power in work is the same as that when he is unemployed, in order to maintain that parity when welfare benefits are increased by 7 per cent.

Mr. Newton
The information requested would vary on the composition of the household. The information in the table gives three examples of hypothetical family types, whose net weekly spending power is the same as when unemployed. Assumptions are as per the November 1984 DHSS tax-benefit model tables updated to show also the November 1985 situation.--------------------------------------------
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|Single non-householder over 21            |
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|Single householder                        |
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|Married couple with 2 children (4 & 6)|
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Note:

In October 1985 a lower percentage national insurance contribution of 5 per cent. for those earning between £35·50 and £55 was introduced.

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|250 Elm Grove, Brighton|
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|Alvaston               |
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|Fazakerly              |
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|Glasgow                |
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|Leeds                  |
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|Leicester              |
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|Newbury                |
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|Plawsworth             |
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|Sittingbourne          |
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