§ Mrs. Sally Oppenheimasked the Chancellor of the Exchequer (1) what was the purchasing power of a gross income of £40, assuming tax allowances for a married couple with one child, in February 1974 compared with the purchasing power of a gross income of £64 on 30th October 1976, assuming tax allowances 896W for a married couple with one child, based on the internal purchasing power of the £ sterling at 100p in February 1974 and 62p on 30th October 1976;
(2) what was the purchasing power of a gross income of £46.50, assuming tax allowances for a married couple with one child in February 1974 compared with the purchasing power of a gross income of £71 on 30th October 1976 assuming tax allowances for a married couple with one child based on the internal purchasing power of the £ sterling at 100p in February 1974 and 62p on 30th October 1976.
§ Mr. Robert SheldonThe purchasing power in terms of the prices existing at the time, of a gross income of £40 per week in February 1974, for a married couple with one child under 11 was. £30.50 per week. On October of this year a family in the same circumstances with a gross income of £64 per week would have had a purchasing power of £29.50 per week at February 1974 prices. If the same family had received £46.50 gross in February 1974 their purchasing power would have been £35 per week. An income of £71 in October 1976 would be equivalent to £32 per week. The greater fall in purchasing power in this case occurs because the rise in gross income has not fully compensated for the rise in prices over the period. If gross income had been maintained the purchasing power would only fall to £33.50 per week.