§ Mr. Corbettasked the Chancellor of the Exchequer what has been the estimated annual increase in earnings after tax of a married man with two dependent children in each year since 1970–71 to the latest convenient date.
§ Mr. Robert Sheldon,pursuant to his reply [Official Report, 20th January 1978; Vol. 942, c. 390], gave the following information:
On the assumption that neither child is over 11 years of age and that the man is on average earnings, the figures are as follows:
Year Increase in income after tax over previous year £ per cent. 1971–72 174.20 12.4 1972–73 215.80 13.7 1973–74 201.24 11.2 1974–75 350.48 17.5 1975–76 427.44 18.2 1976–77 388.44 14.0 1977–78 393.32 12.4 Average earnings for years up to 1976–77 have been taken as the average of the New Earnings Survey estimates of the average earnings of full-time adult male workers in all occupations at April at the start and finish of each financial year. For 1977–78 the figure used is the annual equivalent of the estimate of average 536W difference between the gross incomes and £1,000, if a 10 per cent. tax rate were then applied to the first £1,000 of taxable income and an extra 10 per cent. on each successive £1,000 up to a maximum 80 per cent. and if child benefit were increased to £4 per child but taxed.
§ Mr. Robert Sheldon,pursuant to his reply [Official Report, 20th January 1978; Vol. 942, c. 389–90], circulated the following answer:
The figures are:
earnings in October 1977 obtained by updating the April 1977 NES figure by the monthly index of average earnings. Income after tax includes family allowance for years up to 1976–77 and child benefit for 1977–78.