§ Mr. Ralph Howellasked the Chancellor of the Exchequer if he will publish a table showing the effects of tax changes and of phases 1 and 2 of the incomes policy on the net income after tax, national insurance and family or child benefit, but excluding means tested benefits, of a married couple with four children, assuming income in April 1975 of £25, £35, £45, £55 and £65, and that the maximum allowable wage increases have been paid.
§ Mr. Robert SheldonAssuming that none of the children is over 11 years of age, the figures are as follows:
Gross weekly earnings in April 1975 Net weekly income April 1975 April 1976 April 1977 (a) (b) £ £ £ £ £25 … 28.12 33.72 37.07 37.07 £35 … 35.58 41.54 44.40 44.79 £45 … 41.53 47.47 50.55 50.85 £55 … 47.48 53.39 56.99 57.18 £65 … 53.43 59.32 63.41 36.50 For the purpose of the calculations, it had been assumed that gross weekly earnings were increased by£between April 1975 and April 1976 and by 5 per cent., 65W subject to a minimum increase of £2.50 and a maximum increase of £4, between April 1976 and April 1977.
Net weekly income is gross earnings plus family allowances or child benefit less income tax and national insurance contributions. For April 1977 the figures in Column (a) are on the basis of the original Budget proposals and thus are comparable with those given in reply to the hon. Member on 6th July 1977—[Vol. 934, c. 571–2.] The figures in column (b) take account of the proposed tax changes announced in the Chancellor's statement of 15th July 1977.
ANNUAL INCOME TAX LIABILITY (a) (b) (c) (d) (e) Year Two single people Married couple without children Married couple without children where the wife is also earning Married couple with 3 children not over 11 Married couple with 4 children aged 16, 14, 12 and 9 £ £ £ £ £ 1938–39 … … — — — — — 1945–46 … … 16.65 23.44 — — — 1960–61 … … 14.87 33.01 4.43 0.60 — 1970–71 … … 84.73 161.04 26.98 98.51 30.40 1977–78 … … 397.91 524.96 265.91 404.18 247.43 The figures have been calculated on the same basis as those given in reply to the hon. Member's previous Question on 24th June 1977— [Vol. 933, c. 608–611]—except that total earnings have now been
ANNUAL INCOME TAX LIABILITY (a) (b) (c) (d) (e) Two single people Married couple without children Married couple without the wife is also earning Married couple with 2 children not over 11 Married couple with 4 children aged 16, 14, 12 and 9 £ £ £ £ £ 50 per cent. of average earnings … 63.65 197.95 — 73.51 — 75 per cent. of average earnings … 382.77 517.07 229.77 392.63 231.13 100 per cent. of average earnings … 701.90 836.20 548.90 711.76 550.26 150 per cent. of average earnings … 1,340.14 1,474.44 1,187.14 1,350.00 1,188.50 200 per cent. of average earnings … 1,978.39 2,125.52 1,825.39 1,988.25 1,826.75