§ Mr. Bakerasked the Chancellor of the Exchequer what he estimates will be the increase in real personal disposable income, and in the real take-home pay of a married man on average earnings, with two children under 11 years in 1978–79, assuming the forecasts in the most recent Financial Statement and Budget Report.
§ Mr. Robert SheldonComparing October 1977 with October 1978 the figures are as follows:
Increase in real take-home pay at October 1977 prices Increase in real disposable income at October 1977 prices £ £ 0.70 per week 2.50 per week These figures do not take into account the further increase in child benefit proposed for November 1978.
For October 1978 average earnings have been notionally estimated as follows: on the basis that in October 1977 a man on average 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. It is assumed that the retail prices index will rise by 7 per cent. over the same period.
25 per cent. tax threshold 34 per cent. tax threshold 25 per cent. threshold as percentage of supplementary benefit entitlement level including allowance for rent and rates 34 per cent. threshold as percentage of supplementary benefit entitlement level including allowance for rent and rates £ £ Single person … … … … 985 1,735 87 153 Single-wage married couple … … 1,535 2,285 96 143 Two-wage married couple … … 2,520 4,020 157 251 Married couple, one child aged 13 … 1,670 2,420 82 119 Married couple, two children aged 10 and 13 … … … … 1,770 2,520 76 109 Married couple, three children aged 10, 13 and 15 … … … … 1,905 2,655 71 98 Married couple, four children aged 8, 10, 13 and 15 … … … … 2,005 2,755 66 91 The figures used for supplementary benefits are the current short term scale rates and for rent and rates the average housing costs for a local authority residence.
Child benefit has not been included.