HC Deb 16 December 1975 vol 902 cc558-60W
Mr. Ralph Howell

asked the Chancellor of the Exchequer if he will publish a table showing (a) total national insurance contributions, distinguishing between employers' and employees' contributions and (b) income tax liability, each as a percentage of the gross wage of a man with a wife and two children not over 11 years of age earning 50 per cent., 75 per cent., 100 per cent., 150 per cent., and 200 per cent. of average manual earnings in 1950, 1960, 1970, 1975 and 1976, assuming for 1976 the new rates of national insurance proposed to take effect from 1st April 1976, and assuming that average earnings in 1976 will be £6 higher than in 1975.

Mr. Robert Sheldon

The figures are as shown in the table below.

For the purpose of the calculations it has been assumed that

  1. i. 1975–76 tax rates and allowances apply for 1976–77.
  2. ii. The gross wage is the relevant percentage of the average weekly earnings of full-time manual men aged 21 and over in manufacturing and certain other industries, at October of each of the three earlier years. 1975–76 has been estimated by applying the monthly index of average earnings (as at September 1975) to the average figure of £48.63 for October 1974. 1976–77 was obtained by adding £6 to this estimate.

Although the gross wage does not include faimly allowances, the tax on the family allowance maintenance, and claw-back, have been taken into account in the calculations.

The figures relate to a man aged 18 or over for national insurance purposes who is not contracted out of the Graduated Pension Scheme.

The national insurance contributions are those in force at October of each year, except for 1976–77, where the rates used are those already announced to come into effect with effect from April 1976.

Gross Wage 1950–51 1960–61 1970–71 1975–76 1976–77
£ Per cent. £ Per cent. £ Per cent. £ Per cent. £ Per cent.
50 per cent. of Average Weekly Earnings … Weekly Earnings … … 3.76 7.27 14.03 30.14 33.14
Tax … … … … — — — 1.76 2.81
Tax (per cent.) … … — — — 5.8 8.5
Employer NIC … … 0.21 0.41 3.60 2.57 2.91
Employer NIC (per cent.) … 5.6 5.6 25.7 8.5 8.8
Employee NIC … … 0.25 0.50 1.13 1.66 1.91
Employee NIC (per cent.) … 6.6 6.9 8.0 5.5 5.8
75 per cent. of Average Weekly Earnings … Weekly Earnings … … 5.64 10.90 21.04 45.20 49.70
Tax … … … … — 0.01 1.86 7.04 8.61
Tax (per cent.) … … — 0.1 8.8 15.6 17.3
Employer NIC … … 0.21 0.41 3.89 3.85 4.35
Employer NIC (per cent.) … 3.7 3.8 18.5 8.5 8.8
Employee NIC … … 0.25 0.50 1.42 2.49 2.86
Employee NIC (per cent.) … 4.4 4.6 6.8 5.5 5.8
100 per cent. of Average Weekly Earnings … Weekly Earnings … … 7.52 14.53 28.05 60.27 66.27
Tax … … … … 0.04 0.49 4.11 12.31 14.41
Tax (per cent.) … … 0.5 3.3 14.6 20.4 21.8
Employer NIC … … 0.21 0.41 4.12 5.12 5.80
Employer NIC (per cent.) … 2.8 2.8 14.7 8.5 8.8
Employee NIC … … 0.25 0.50 1.65 3.31 3.81
Employee NIC (per cent.) … 3.3 3.4 5.9 5.5 5.8
150 per cent. of Average Weekly Earnings … Weekly Earnings … … 11.28 21.80 42.08 90.41 99.41
Tax … … … … 0.71 2.27 8.61 22.86 26.01
Tax (per cent.) … … 6.3 10.4 20.5 25.3 26.2
Employer NIC … … 0.21 0.41 4.17 5.86 8.31
Employer NIC (per cent.) … 1.9 1.9 9.9 6.5 8.4
Employee NIC … … 0.25 0.50 1.70 3.79 5.46
Employee NIC (per cent.) … 2.2 2.3 4.0 4.2 5.5
200 per cent. of Average Weekly Earnings … Weekly Earnings … … 15.04 29.06 56.10 120.54 132.54
Tax … … … … 1.77 4.46 13.11 33.85 39.21
Tax (per cent.) … … 11.8 15.4 23.4 28.1 29.6
Employer NIC … … 0.21 0.41 4.17 5.86 8.31
Employer NIC (per cent.) … 1.4 1.4 7.4 4.9 6.3
Employee NIC … … 0.25 0.50 1.70 3.79 5.46
Employee NIC (per cent.) … 1.7 1.7 3.0 3.1 4.1