APPENDIX 2
EUROPEAN COMMISSION
ACTION PLANS
The Lisbon European Council held in March 2000
called for action on the eradication of poverty throughout the
Union by 2010. Member States are required to submit a National
Action Plan this summer. One difficulty in making European comparisons
is that HBAI results are adjusted using the McClements scale whereas
analysis carried out by Eurostat for the European Union uses the
Modified OECD scale. The Modified OECD scale gives more weight
to the first adult and less to the second and subsequent adults
and has less age differentiation for children. This has the effect
of giving single adult households a lower equivalised income relative
to couples than under the McClements scales: similarly families
with younger children have lower equivalised incomes. The table
below shows the position that would result if the Modified OECD
scale was used for families selected for analysis in the DWP Tax
Benefit Model Tables for June 2003. It should be noted that this
table is on a before housing cost basis—there is no separate
OECD scale for after housing costs.
DWP TAX MODEL FAMILIES 2003-04; EQUIVALISED
INCOME ABOVE OR BELOW ESTIMATED 60% MEDIAN (BHC)
|
| Gross earnings | |
| 90 | 100
| 150 | 200
| 250 | 300
|
|
| Lone parent one child aged 1 | (LA tenant)
| (Table 1.2a) | 31
| 35 | 56
| 73 | 90
| 107 |
| Lone parent one child aged 1 | (private tenant)
| (Table 1.2.e) | 85
| 87 | 95
| 191 | 107
| 113 |
| Lone parent two children aged 2 and 4 | (LA tenant)
| (Table 1.3.a) | 28
| 38 | 43
| 57 | 71
| 85 |
| Lone parent two children aged 2 and 4 | (private tenant)
| (Table 1.3e) | 102
| 104 | 110
| 115 | 120
| 125 |
| Married couple one child aged 1 | (LA tenant)
| (Table 1.5a and b) | -21
| -20 | -6
| -6 | 19
| 31 |
| Married couple one child aged 1 | (private tenant)
| (Table 1.5c and d) | 18
| 19 | 32
| 35 | 40
| 44 |
| Married couple 2 children aged 2 and 4 |
(LA tenant) | (Table 1.6a and b)
| -14 | -14
| -3 | 4
| 14 | 25
|
| Married couple 2 children aged 2 and 4 |
(private tenant) | (Table 1.6c and d)
| 42 | 43
| 54 | 55
| 59 | 63
|
| Married couple 3 children aged 8,10 and 12 |
(LA tenant) | (Table 1.7a and b)
| -14 | -13
| 36 | 41
| 51 | 60
|
| Married couple 3 children aged 8,10 and 12 |
(private tenant) | (Table 1.7c and d)
| 36 | 36
| 45 | 47
| 50 | 54
|
|
Notes:
i. HBAI figure for 60% median in 2001-02 is £187
per week. It is estimated that the 2003-04 figure will be £205
per week
ii. The higher figures for the private tenant families
appears to be due to the inclusion of higher housing benefit in
the measure of income.
| 
