§ Mr. Cormackasked the Chancellor of the Exchequer what was the average industrial wage in 1950, 1955, 1960, 1965, 1970, 1975 and 1977, respectively; what 27W was the average price of a new three-bedroom semi-detached house in: (a) London and (b) the West Midlands in the same years; and what proportion of his income a married man with two children
Average earnings of manual workers* Average price of dwellings† Percentage of income paid in tax and national insurance contributions‡(Financial years) Greater London West Midlands (£ per annum) (£) (£) 1950 … … … … 391 2,800 1,750 3.2 1955 … … … … 580 2,650 1,650 2.8 1960 … … … … 756 3,150 1,950 3.9 1965 … … … … 1,019 4,850 3,000 6.8 1970 … … … … 1,459 6,590 4,080 12.7 1975 … … … … 3,098 15,010 9,250 14.9 1977 … … … … 3,869 16,830§ 10,910§ 15.6 * Figures are based on the Department of Employment's estimates of the average earnings of full-time adult male manual workers in October of each year. † The figures are estimates of the average price of all dwellings; information about three-bedroomed semi-detached houses is not available. From 1970 onwards the estimates are based on a 5 per cent, sample survey of new building society mortgages. Prior to 1970, the averages have been estimated by applying an index of United Kingdom house prices to the 1970 average price; thus the figures in these years do not take account of any relative price changes between the two regions. ‡ These percentages relate to a manual worker on average earnings, married, with an 80 per cent, mortgage and with two children—one under 11 years of age and one between 11 and 16 years of age. The mortgage is assumed to start at the beginning of the year and is based on the average price of dwellings in the United Kingdom. Family allowances have been included as part of income in assessing tax liability. § Average price in first nine months of 1977.
§ Mr. Lawsonasked the Chancellor of the Exchequer, further to the Written Answer to the hon. Member for Blaby (Mr. Lawson) on 22nd November, if he will publish a table showing (a) the real take-home pay and (b) the real net income of a married man on average earnings, with two children under 11 years of age, in December 1977 and in December of each of the three previous years, all expressed in terms of December 1977 prices.
§ Mr. Robert SheldonThe figures are as follows:
Real weekly take-home pay at December 1977 prices Real weekly net income at December 1977 prices £ £ December 1974 70.20 71.70 December 1975 65.00 66.90 December 1976 63.00 64.60 November 1977 62.40 64.90 "Take-home pay" is gross earnings less income tax and national insurance contributions; "net income" is take-
28Wunder 16 years and an 80 per cent. mortgage paid in tax and national insurance contributions in the same years.
§ Mr. Robert SheldonFollowing is the information:
home pay plus family allowance for years up to 1976 and child benefits for 1977.
Average earnings have been taken from the April New Earnings Survey estimates of the average earnings of full time adult male workers in all occupations, manual and non-manual, updated by the index of average earnings to give estimates for the following December, except for 1977 where the latest figures are for November.
The price index used is the General Index of Retail Prices—all items.
For 1974 it has been assumed that the employee was not contracted out of the graduated pension scheme.