§ Mr. Tebbitasked the Chancellor of the Exchequer, pursuant to his reply to the hon. Member for Chingford, on 8th June, why the reply gave figures for net income instead of net take-home pay as in the Question; and if he will now take steps to provide the figures requested in that Question.
§ Mr. Robert Sheldon,pursuant to his reply [Official Report, 12th June 1978; Vol. 951, c. 340], gave the following information:
The change-over from child tax allowances and taxable family allowance to tax-free child benefit, beginning in April 1977 and continued in April 1978, means that the net take-home pay normally taken to be gross earnings less tax and national insurance contributions, of most families is not a comprehensive measure of their disposable income, or of changes in this income. Figures for take-home pay, calculated on the same basis as those for net income given in my earlier reply, but excluding family allowances and child benefit, are as follows:
FALL IN REAL TAKE-HOME PAY TO MARCH 1978 AT CONSTANT MARCH 1978 PRICES £ per week (a) since March 1974 … 3.54 (b) since October 1974 … 4.35