§ Mrs. Ann Taylorasked the Chancellor of the Exchequer what has been the average increase in gross and net incomes of all employees since 1954, and of those earning, respectively, £30, £20, £15, £10 and £5 in 1954.
§ Mr. Denzil DaviesThe average increase of income from employment, before tax, was some 8½ per cent. a year between 1954 and 1974. The allocation of tax to sources of income can only be arbitrary, but on the basis described in National Accounts Statistics—Sources and Methods, page 328, and deducting national insurance and superannuation contributions relating to employment income, the increase in net income from employment was of the order of 7½ per cent. a year over the same period. No information is available on the increase in incomes of those employees whose earnings were at a particular level in any given year.
§ Mrs. Ann Taylorasked the Chancellor of the Exchequer how many persons, at 351W the latest tax year for which the information is available, had a gross income which would make them liable to income tax at the 83 per cent. rate; and of these how many, owing to receipt of tax reliefs and allowances, in fact paid income tax at the rates of 70–82 per cent., 60–69 per cent., 50–59 per cent., 40–49 per cent. and 35–39 per cent., respectively.
§ Mr. Denzil DaviesI will write to my hon. Friend.
§ Mr. Cantasked the Chancellor of the Exchequer whether he will publish an estimate of the fall in real incomes in the 12 months from July 1975.
§ Mr. Denzil DaviesQuarterly figures of real personal disposable income (RPDI) are available in Economic Trends for recent past periods. For future
CHILD TAX ALLOWANCE Average earnings of manual adult males All children Children Not over 11 Over 11, not over 16 Over 16 Year £ p.a. £ Percent. of average earnings £ Percent. of average earnings £ Percent. of average earnings £ Percent. of average earnings 1945–46 … 315 50 15.9 — — — — — — 1946–47 … 314 50 15.9 — — — — — — 1947–8 … 333 60 18.0 — — — — — — 1948–49 … 359 60 16.7 — — — — — — 1949–50 … 311 60 16.2 — — — — — — 1950–51 … 391 60 15.3 — — — — — — 1951–52 … 432 70 16.2 — — — — — — 1952–53 … 464 85 18.3 — — — — — — 1953–54 … 492 85 17.3 — — — — — — 1954–55 … 531 85 16.0 — — — — — — 1955–56 … 580 100 17.2 — — — — — — 1956–57 … 619 100 16.2 — — — — — — 1957–58 … 654 — — 100 15.3 125 19.1 150 22.9 1958–59 … 667 — — 100 15.0 125 18.7 150 22.5 1959–60 … 704 — — 100 14.2 125 17.8 150 21.3 1960–61 … 756 — — 100 13.2 125 16.5 150 19.8 1961–62 … 798 — — 100 12.5 125 15.7 150 18.8 1962–63 … 825 — — 100 12.1 125 15.2 150 18.2 1963–64 … 871 — — 115 13.2 140 16.1 165 18.9 1964–65 … 942 — — 115 12.2 140 14.9 165 17.5 1965–66 … 1,019 — — 115 11.3 140 13.7 165 16.2 1966–67 … 1,056 — — 115 10.9 140 13.3 165 15.6 1967–68 … 1,111 — — 115 10.4 140 12.6 165 14.9 1968–69 … 1,196 — — 115 9.6 140 11.7 165 13.8 1969–70 … 1,291 — — 115 8.9 140 10.8 165 12.8 1970–71 … 1,459 — — 115 7.9 140 9.6 165 11.3 1971–72 … 1,608 — — 115 9.6 180 11.2 205 12.7 1972–73 … 1,863 — — 115 8.3 180 9.7 205 11.0 1973–74 … 2,128 — — 200 9.4 235 11.0 265 12.5 1974–75 … 2,529 — — 240 9.5 275 10.9 305 12.1 Notes:
The earnings figures used in the calculations are the annual equivalent of average weekly earnings of full-time, male manual workers aged 21 and over in manufacturing and certain other industries at October of each year, except for 1945–46, when the figures related to July 1945.
For the years prior to 1957–58 there was a single rate of allowance for all qualifying children. The three age bands in present use were introduced for 1957–58.
352Wperiods, it is not customary to publish official RPDI forecasts, but some information is available covering estimated changes in real disposable income by specific household category over the period third quarter 1975 to third quarter 1976. For this I would refer my hon. Friend to written answers on 17th July [Vol. 895, c. 564] and 22nd July [Vol. 896, c. 187].