HC Deb 23 November 1972 vol 846 cc490-1W
Mr. Meacher

asked the Chancellor of the Exchequer (1) by how much the take-home pay would be reduced, compared with the existing position and under the unified tax system, respectively, of married men with, respectively, one, two, three and four children with annual incomes, respectively, of £750, £1,000, £1,500, £2,000, £2,500 and £5,000, if the married persons' tax credit were paid to the father and all the child tax credits were paid to the mother;

(2) by how much the take-home pay would be reduced, compared with the existing position and under the unified tax system, respectively, of married men with, respectively, one, two, three and four children with annual incomes, respectively, of £750, £1,000, £1,500, £2,000, £2,500 and £5,000, if half the married persons' tax credit were paid to the father and half to the married credit plus all tax credits to the mother.

£p per week
Married with one child Married with two children Married with three children Married with four children
Change in take home pay of father compared with (— reduction) Change in take home pay of father compared with (— reduction) Change in take home pay of father compared with (— reduction) Change in take home pay of father compared with (— reduction)
(a) (b) (a) (b) (a) (b) (a) (b)
Earnings (£ per annum) Present tax system Unified tax system Present tax system Unified tax system Present tax system Unified tax system Present tax system Unified tax system
(1972–73) (1973–74) (1972–73) (1973–74) (1972–73) (1973–74) (1972–73) (1973–74)
A. If only married tax credit paid to the father
750 … +1.68 +1.68 +1.68 +1.68 +1.68 +1.68 +1.68 +1.68
1,000 … +0.40 +0.37 +0.23 +0.23 +0.23 +0.23 +0.23 +0.23
1,500 … +0.40 +0.37 —0.17 —0.17 —0.71 —0.67 —1.25 —1.18
2,000 … +0.40 +0.37 —0.17 —0.17 —0.71 —0.67 —1.25 —1.18
2,500 … +0.40 +0.37 —0.17 —0.17 —0.71 —0.67 —1.25 —1.18
5,000 … +1.05 +0.37 +0.50 —0.17 —0.01 —0.67 —0.53 —1.18
B. If only half the married tax credit paid to the father
750 … —1.32 —1.32 —1.32 —1.32 —1.32 —1.32 —1.32 —1.32
1,000 … —2.60 —2.63 —2.77 —2.77 —2.77 —2.77 —2.77 —2.77
1,500 … —2.60 —2.63 —3.17 —3.17 —3.71 —3.67 —4.25 —4.18
2,000 … —2.60 —2.63 —3.17 —3.17 —3.71 —3.67 —4.25 —4.18
2,500 … —2.60 —2.63 —3.17 —3.17 —3.71 —3.67 —4.25 —4.18
5,000 … —1.95 —2.63 —2.50 —3.17 —3.01 —3.67 —3.53 —4.18

Notes:

  1. 1. The allowances and rates used for 1973–74 are provisional as set out in sections 65 and 66 of the Finance Act 1972.
  2. 2. The tax credits used in the calculations are the illustrative rates in the Green Paper, "Proposals for a Tax Credit System", (Cmnd. 5116).
  3. 3. All children are assumed to be under 11: the reductions in take-home pay would be greater if any of the children were over 11.
  4. 4. The income levels relate to earnings and do not include family allowances which at present are paid to the mother, though the tax on these allowances and the "clawback" is paid by the father.