HC Deb 07 April 1975 vol 889 cc364-6W
Mr. Knox

asked the Chancellor of the Exchequer what would be the estimated increase in take-home pay, after deduction of income tax and national insurance contributions, over the next 12 months of a married man with two schoolchildren, currently earning gross wages of £25, £30, £40, £50, £60 and £70 per week, and of the man on average earnings who gains a 20 per cent. pay award during the period, assuming increases in the retail price index of five per cent., 10 per cent., 20

£per week
Take-home pay after20 per cent. Change in real value of take-home pay after gross increase of 20 per cent. And an increase in prices of
Current gross weekly earnings take home pay † increase in gross pay 5 per cent. 10 per cent. 20 per cent. 30 per cent. 40 per cent.
(1) (2) (3) (4) (5) (6) (7) (8)
25 … … 23.00 26.15 +1.90 +0.77 -1.21 -2.89 -4.33
30 … … 26.08 29.84 +2.34 +1.05 -1.22 -3.13 -4.77
40 … … 32.23 37.22 +3.22 +1.60 -1.22 -3.60 -5.65
50 … … 38.38 44.60 +4.09 +2.16 -1.22 -4.08 -6.53
52.86* … … 40.18 46.73 +4.32 +2.30 -1.24 -4.24 -6.81
60 … … 44.53 52.16 +5.14 +2.88 -1.07 -4.41 -7.28
70 … … 51.15 60.20 +6.18 +3.57 -0.99 -4.85 -8.17

NOTES:

*Estimated average earnings of full-time adult male manual workers in manufacturing and certain other industries at December 1974.

†Take-home pay is after tax and national insurance contributions. National insurance contributions have been taken at pre-6th April 1975 rates for column (2) and post-6th April rates for column (3).

Mr. Knox

asked the Chancellor of the Exchequer taking the first quarter of 1964 as 100, what would be the index number for real personal disposable income per head in each of the quarters from 1964 to the latest available date.

Mr. Robert Sheldon

The following table shows the latest estimates available:

PERSONAL DISPOSABLE INCOME—BEFORE PROVIDING FOR ADDITIONS TO TAX RESERVES AT 1970 PRICES, PER HEAD OF TOTAL POPULATION, SEASONALLY ADJUSTED
First quarter1964=100
1964—
First quarter … … … 100.0
Second quarter … … … 100.1
Third quarter … … … 101.4
Fourth quarter … … … 101.4
1965—
First quarter … … … 101.9
Second quarter … … … 101.4
Third quarter … … … 102.5
Fourth quarter … … … 104.0
1966—
First quarter … … … 107.8
Second quarter … … … 103.1
Third quarter … … … 102.5
Fourth quarter … … … 103.3
1967—
First quarter … … … 102.4
Second quarter … … … 105.3
Third quarter … … … 107.0
Fourth quarter … … … 105.5
per cent., 30 per cent. and 40 per cent., respectively.

Mr. Robert Sheldon

Assuming that 1974–75 rates of tax and allowances apply both before and after the increases in pay, that both children are not over 11 and that the men are not contracted out of the graduated pension scheme, the figures are as shown below:

1968—
First quarter … … … 108.3
Second quarter … … … 105.3
Third quarter … … … 105.9
Fourth quarter … … … 106.1
1969—
First quarter … … … 106.7
Second quarter … … … 105.3
Third quarter … … … 106.4
Fourth quarter … … … 107.5
1970—
First quarter … … … 106.8
Second quarter … … … 110.5
Third quarter … … … 111.4
Fourth quarter … … … 110.7
1971—
First quarter … … … 111.0
Second quarter … … … 111.2
Third quarter … … … 113.3
Fourth quarter … … … 114.6
1972—
First quarter … … … 114.5
Second quarter … … … 121.0
Third quarter … … … 120.0
Fourth quarter … … … 123.3
1973—
First quarter … … … 123.6
Second quarter … … … 125.9
Third quarter … … … 127.7
Fourth quarter … … … 127.4
1974—
First quarter … … … 125.1
Second quarter … … … 124.1
Third quarter … … … 129.4