§ Mr. MacGregorasked the Chancellor of the Exchequer whether he will publish in the Official Report his estimate for 1978–79 of (a) a figure for actual or estimated average adult male earnings, (b) the amount of tax payable on such a level of earnings by a married man with two children under 11 years of age, (c) the amount of employee's national insurance contribution, (d) the residual net income adjusted for child benefit and (e) the real purchasing power of the residual net income as adjusted for inflation since 1973–74, expressed in terms of prices at the latest date, together with similar figures for persons with twice and three times average earnings.
§ Mr. Robert SheldonThe figures are as follows:
The amount of child benefits included in net income includes the appropriate proportion of the increase payable from November 1978.
The figures of real net income have been expressed at 1973–74 prices for comparability with those for earlier years given in the answer to the hon. Member on 15th February 1978—[Vol. 944, cols. 268–70.] The prices index used is the general index of retail prices, all items. The figure for the financial year 1978–79 is an estimate based on the assumption that prices rise by 7 per cent., between 1977–78 and 1978–79.
§ Mr. Lawsonasked the Chancellor of the Exchequer if he will publish a table showing, for each of the financial years since 1970–71 the average real weekly net income and the average real weekly take-home pay of a man on average industrial earnings who (a) is single, (b) is married 781W with two children and (c) is married with four children, on the latest available price basis.
Man on Average Industrial Earnings Single person Married man with two children under 11 Married man with four children, two under 11 and two between 11 and 16 Real weekly take-home pay Real weekly net income Real weekly take-home pay Real weekly net income Real weekly take-home pay £ £ £ £ £ 1970–71 … … … … 53.40 62.00 59.60 69.80 62.00 1971–72 … … … … 54.60 63.60 61.40 72.00 64.90 1972–73 … … … … 59.50 67.90 65.80 75.80 69.20 1973–74 … … … … 61.20 68.70 66.80 75.80 69.80 1974–75 … … … … 6010 68.50 67.00 75.80 70.80 1975–76 … … … … 56.90 65.00 62.90 72.00 65.70 1976–77 … … … … 55.40 64.00 62.10 71.00 65.50 1977–78 … … … … 54.70 63.50 60.80 69.60 63.70 1978–79 (Estimate) … … … … 57.10 67.00 61.80 73.80 63.50 Take-home pay is earnings less income tax and national insurance contributions. Net income is take-home pay plus family allowance for years up to and including 1976–77 and child benefits for 1977–78 and 1978–79. Child benefits for 197879 include the appropriate proportion of the increase payable from November 1978.
Average industrial earnings for years up to 1976–77 are the average of the new earnings survey estimates of the average weekly earnings of full-time adult male manual workers in April at the start and finish of each income tax year. For 1977–78 the April 1977 new earnings survey figure has been updated by the monthly index of average earnings to give an estimate for October 1977.
Average industrial earnings in 1978–79 have been notionally estimated as follows: on the basis that in October 1977 a man on average manual earnings has not yet received an increase in the current pay round, it may be assumed that his earnings will rise by a further 10 per cent. to October 1978 in accordance with the Government's guideline.
Tax rates and allowances for 1978–79 used in the calculations are those in the Finance Bill, as amended in Committee.
The prices index used is the general index of retail prices for all items. It has been assumed that the index rises by 7 per cent. between 1977–78 and 1978–79.
Where the rate of national insurance contributions changed during the course of the income tax year the calculations are based on the average rate in force for the
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§ Mr. Robert SheldonThe figures expressed at estimated 1978–79 prices are as follows:
year. For years up to 1974–75 and for 1978–79 it has been assumed that the employee is not contracted out of the graduated pension scheme.