§ 31. Mr. Ralph Howellasked the Chancellor of the Exchequer what progress has been made in his review of the tax structure, especially in relation to the anomaly that married men may be better off out of work than when working.
§ Mr. Maurice MacmillanI have nothing to tell my hon. Friend, beyond the information my hon. Friend the Financial Secretary to the Treasury gave him on 6th July.
§ Mr. Ralph Howellasked the Chancellor of the Exchequer if he will tabulate a comparison of the take-home pay when at work, and the take-home pay when out of work, of a married man earning £15, £20, £25, £30, £35 or £40 per week with none to four children under 11 years of age.
§ Mr. Maurice MacmillanThe figures are:
Gross per week Married Man No Children A B £ £ £15 12.77 15.40 £20 16.03 17.10 £25 19.27 18.80 £30 22.60 20.15 £35 25.68 20.15 £40 28.96 20.15
Gross Pay per week Married Man One Child A B £ £ £15 13.82 13.53 F.I.S 1.50 1.50 15.32 15.03 £20 17.03 20.10 £25 20.37 21.80 £30 23.60 23.15 £35 26.93 23.15 £40 30.16 23.15 56W
Gross Pay per week Married Man Two Children A B £ £ £15 14.72 14.43 F.I.S 2.10 2.10 16.82 16.53 £20 18.53 22.50 £25 21.87 24.20 £30 25.10 25.55 £35 28.43 25.55 £40 31.66 25.55
Gross Pay per week Married Man Three Children A B £ £ £15 15.72 15.43 F.I.S 2.60 2.60 18.32 18.03 £20 20.13 19.20 £25 23.47 26.60 £30 26.70 27.95 £35 30.03 27.95 £40 33.26 27.95
Gross Pay per week Married Man Four Children A B £ £ £15 16.72 17.10 F.I.S. 3.10 3.10 19.82 20.20 £20 21.48 20.75 F.I.S. 0.60 0.60 22.08 21.35 £25 24.92 29.00 £30 28.20 30.35 £35 31.48 30.35 £40 34.71 30.35 NOTES:
1. Column A shows the man's take-home pay when at work for week 40 of the current tax year (1971–72).2. Column B shows his total income from unemployment benefit (including Earnings Related Supplement) and (where appropriate) tax refunds for week 42 on the assumption that that is his third consecutive week of unemployment.3. Earnings Related Supplement is not paid for the first two weeks of unemployment and therefore the figures in Column B would be lower for those two weeks.4. Where appropriate family allowances. National Insurance (including graduated pension) contributions have been taken into account in the figures, but not the possibility that some supplementary benefit might be paid during unemployment. Family Income Supplement payments (F.I.S.) are shown separately. They appear under Column B as well as Column A because a man who becomes entitled to F.I.S will receive it for the period of the award regardless of whether he becomes unemployed during that period.