Annex A.1
Example 1: One child aged seven. Father earns £315
net (equivalent to £400 pw gross in 1998); Housing costs
£50 pw. Mother earns net as below, with £50 pw housing
costs.
|
| Mother net | 0 |
50 | 100 | 150
| 200 | 300 |
400 | 800 |
|
| 6th April 1998 | 79.27 | 79.27
| 79.27 | 74.02 | 66.85
| 58.00 | 47.93 | 26.43
|
| Green Paper | 47.25 | 47.25
| 47.25 | 47.25 | 47.25
| 47.25 | 47.25 | 47.25
|
| Reduction | 32.02 | 32.02
| 32.02 | 26.77 | 19.60
| 10.75 | .68 | (20.82)
|
| Per cent reduction | 40.4 |
40.4 | 40.4 | 36.2
| 29.3 | 18.5 | 1.4
| -78.8 |
|
| Example 2: Two children aged seven and 12: Father earns £315 net (equivalent to £400 pw gross in 1998); Housing costs £50 pw. Mother earns net as below, with £50 pw housing costs.
|
|
| Mother net | 0 |
50 | 100 | 150
| 200 | 300 |
400 | 800 |
|
| 6th April 1998 | 92.91 | 92.91
| 92.91 | 92.54 | 83.22
| 72.22 | 65.94 | 44.71
|
| Green Paper | 63.00 | 63.00
| 63.00 | 63.00 | 63.00
| 63.00 | 63.00 | 63.00
|
| Reduction | 29.91 | 29.91
| 29.91 | 29.54 | 20.22
| 9.22 | 2.94 | (18.29)
|
| Per cent reduction | 32.2 |
32.2 | 32.2 | 31.9
| 24.3 | 12.8 | 4.5
| -40.9 |
|
| Example 3: Three children aged seven, 12 and 15: Father earns £315 net (equivalent to £400 pw gross in 1998); Housing costs £50 pw, mother earns net as below, with £50 pw housing costs.
|
| Mother net | 0 |
50 | 100 | 150
| 200 | 300 |
400 | 800 |
|
| 6th April 1998 | 94.50 | 94.50
| 94.50 | 94.50 | 94.50
| 86.98 | 79.34 | 67.05
|
| Green Paper | 78.75 | 78.75
| 78.75 | 78.75 | 78.75
| 78.75 | 78.75 | 78.75
|
| Reduction | 15.75 | 15.75
| 15.75 | 15.75 | 15.75
| 8.23 | .59 | (11.70)
|
| Per cent reduction | 16.7 |
16.7 | 16.7 | 16.7
| 16.7 | 9.5 | 0.7
| -17.4 |
|
| The gross income figure taken for the father is £20,800, being mid-way between the average male manual and non-manual earnings figures given by the Department of Employment's New Earnings Survey 1997. The figure given for housing costs is arbitrary but, it is suggested, unlikely to be unrealistic. No other factors capable of allowance in the formula have been included.
|
|
