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WRITTEN QUESTION TO THE CHIEF MINISTER
BY DEPUTY G.P. SOUTHERN OF ST. HELIER ANSWER TO BE TABLED ON TUESDAY 9th MARCH 2010
Question
Will the Chief Minister inform members of the estimated costs to States revenues over a 6-month period in lost Income Tax and indirect taxes, Social Security contributions, and Income Support payments of the redundancy of an employee on the average wage, in the absence of any redundancy payments, if that employee is –
- si n gle;
- m a rriedwith 2 children,wifenotworking, and either
- in appropriate States social rental accommodation, or
- O wner/occupation with a mortgageof £200,000?
Answer
I can confirm that the estimated costs to States revenues over a six month period of the redundancy of an employee on the average wage*, in the absence of any redundancy payments is as follows:
| Household type | Income Tax | States Contribution to Supplementation | Income Support payments |
(a) | Single | £2,644 | Gain of £719.50 (supplementation being paid) not | If occupying a 1 bed flat at fair rent then IS = £291.76 per week x 26 weeks = £7,585.76 |
(b) | married with 2 children, wife not working, and either |
|
|
|
(i ) | in appropriate States social rental accommodation, or | £804 | Gain of £719.50 (supplementation being paid) not | If occupying a 3 bed House at fair rent then additional IS = £607.25 x 26 weeks = £13,218.40. |
(i i) | Owner/occupation with a mortgage of £200,000. | £0 | Gain of £719.50 (supplementation being paid) not | £363.37 per week x 26 weeks = £9,447.62 |
Average wage based on average weekly earnings per full-time equivalent employee was £620 (June 2009, Statistics Unit).
It is not possible to determine a meaningful estimate of the effect of redundancy on indirect taxes because the influence of any potential behavioural change resulting from redundancy on the distribution (not the level) of expenditure by an affected household is unquantifiable.