§ Mr. Ralph Howell
asked the Chancellor of the Exchequer if he will publish figures showing the net gains or losses between 1977–78 and 1978–79 as a result of changes in child benefits, income tax, national insurance contributions and mortgage interest rates, for each of a single person, a married couple, a two-wage
INCREASE IN NET WEEKLY INCOME BETWEEN 1977–78 and 1978–79 DUE TO CHANGES IN CHILD BENEFITS, INCOME TAX, NATIONAL INSURANCE CONTRIBUTIONS AND MORTGAGE INTEREST RATES Gross earnings Single person Married couple Two-wage married couple Married couple with 1 child aged 15 Married couple with 2 children aged under 11 Married couple with 4 children aged 16, 14, 12 and 9 £ £ £ £ £ £ 50 per cent, of average manual earnings 0.60 0.60 0.74 2.17 3.24 5.38 75 per cent, of average manual earnings 1.65 1.01 0.67 1.72 2.96 5.24 100 per cent, of average manual earnings 1.51 1.77 1.38 2.71 3.32 4.40 150 per cent, of average manual earnings 0.83 1.09 3.47 2.03 2.64 3.87 200 per cent, of average manual earnings 0.30 0.57 3.33 1.51 2.12 3.34
The figures take account of changes in child benefits, where appropriate, income tax, national insurance contributions and mortgage repayments, but assume that the earnings received in 1977–78 are unchanged in 1978–79.
The figures include the appropriate proportion of the increased level of child benefits payable from November 1978.
The income tax rates and allowances for 1978–79 allow for the changes proposed in the Budget but not the subsequent amendments made in Committee.
In the case of the two-wage married couple it has been assumed that the wife earns half the income and has elected to pay national insurance contributions at the reduced rate of 2 per cent.
It has been assumed that the mortgage is repayable over 20 years and that the present mortgage interest rate remains unchanged for the remainder of the 1978–79 income tax year.
The average manual earnings in 1977–78 (£74.60) are estimated by taking the new earnings survey estimate of the average earnings of full-time adult male manual workers in April 1977 and updating it by the monthly index of average earnings in October 1977.