HC Deb 24 July 1975 vol 896 cc280-1W
Mr. MacGregor

asked the Chancellor of the Exchequer what would be the various net income levels in May 1975 to provide the equivalent in real terms, taking into account the changes in the value of money, to the net income after tax of a single man and a married man with two children under 11 years of age with gross incomes, assuming all earned, of£2,000,£4,000,£6,000,£8,000, £10,000,£12,000 and£15,000 in 1961–62, 1965–66 and 1970–71; and what gross incomes in May 1975 all earned, would be required to produce these 1975 net income levels.

Mr. Davies

The figures are given in the table below:

Year Gross income Net income Equivalent net income 1975–76 Gross income required to produce 1975–76 net income
A. SINGLE MAN
1961–62 … … … 2,000 1,514 3,993 5,844
4,000 2,911 7,677 15,265
6,000 4,126 10,882 31,451
8,000 5,100 13,451 46,563
10,000 5,914 15,598 59,193
12,000 6,468 17,057 67,775
15,000 7,109 18,748 77,722
1965–66 … … … 2,000 1,493 3,438 4,926
4,000 2,851 6,566 11,721
6,000 4,010 9,235 21,763
8,000 4,904 11,293 33,869
10,000 5,622 12,947 43,599
12,000 6,057 13,949 49,493
15,000 6,502 14,975 55,528
1970–71 … … … 2,000 1,492 2,746 3,851
4,000 2,851 5,245 8,331
6,000 4,019 7,395 14,325
8,000 4,947 9,102 20,981
10,000 5,715 10,515 29,293
12,000 6,217 11,439 34,728
15,000 6,782 12,479 40,846
B. MARRIED MAN WITH 2 CHILDREN UNDER 11
1961–62 … … … 2,000 1,645 4,338 5,855
4,000 3,041 8,021 14,638
6,000 4,291 11,317 30,300
8,000 5,293 13,960 45,847
10,000 6,134 16,177 58,888
12,000 6,701 17,674 67,694
15,000 7,356 19,401 77,853
1965–66 … … … 2,000 1,651 3,803 5,028
4,000 3,009 6,930 11,360
6,000 4,213 9,702 21,003
8,000 5,143 11,845 33,406
10,000 5,896 13,579 43,606
12,000 6,349 14,623 49,747
15,000 6,813 15,690 56,023
1970–71 … … … 2,000 1,659 3,053 3,874
4,000 3,016 5,549 8,087
6,000 4,225 7,774 13,815
8,000 5,186 9,541 20,359
10,000 5,988 11,018 28,541
12,000 6,509 11,975 34,170
15,000 7,092 13,049 40,488

The gross incomes shown do not include family allowances, but tax on the family allowance, and clawback for 1970–71, have been taken into account where appropriate in the calculations. It has been assumed that family allowance is claimed only where it is to the taxpayer's advantage.

Except for 1975–76 the price indices used are those given in Table 2 of "The Internal Purchasing Power of the Pound" published by the Press and Information Service of the Central Statistical Office in July 1975: the appropriate calendar year index has been used for each fiscal year. For 1975–76 the retail price index for May 1975 has been used.