HC Deb 10 December 1975 vol 902 cc250-1W
Mr. Madden

asked the Chancellor of the Exchequer what is the basis of calculation for his statement that in the course of the year under the £6 cash limits policy the average-paid worker will suffer a fall of 4–5 per cent. in net real disposable income, while the lower paid make a marginal gain or loss, and the higher paid lose 15–25 per cent. in net real terms.

Mr. Joel Barnett

My right hon. Friend does not recall making such a statement. However, he did say in the House on 1st July in connection with his statement thatreal take-home pay—corrected for inflation, and after the deduction of tax and insurance and superannuation contributions—would rise for people on two-thirds' average earnings would fall by about 2½ per cent. over the year as a whole for people on average earnings, and would fall by substantially more for people with above average earnings."—[Vol. 894. c. 1193.] The calculations assumed compliance with the pay limit and a reduction in the rate of domestic inflation to 10 per cent. by the end of the pay round, in accordance with the Government's target.