HC Deb 09 February 1979 vol 962 cc334-41W
Mr. Norman Lamont

asked the Chancellor of the Exchequer whether he will publish in the Official Report a table showing the real increases in post-tax living standards to 31 March 1979, both in total and for each year since 31 March 1974, taking into account all the Budget changes and any changes in national insurance contributions, assuming for 1978-79 an increase in pre-tax earnings for each person of 10 per cent. and an inflation rate of 8 per cent. to 31 March 1979, and for previous years, assuming the same increase in earnings for each group, as the average increase in earnings that year, for (a) a singe person, (b) a married person, (c) a married couple with one child, (d) a married couple with two children, (e) a married couple with three children and (f) a married couple with four children earning in March 1974£2,000, £3,000, £3,500, £4,000, £5,000, £6,000, £8,000, £10,000, £14,000, £18,000, £20,000 and £25,000, respectively.

Mr. Robert Sheldon,

pursuant to his reply [Official Report, 22 January 1978; Vol. 961, c. 24–5], gave the following reply

The figures are as follows:

CHANGES IN REAL NET INCOME AT MARCH 1974 PRICES—INCREASES, EXPECT WHERE INDICATED
Single Person
Earnings level in March 1974 March 1975 March 1976 March 1977 March 1978 March 1979 March 1974 to March 1979 Earnings levels in March 1979
£ £ £ £ £ £ £
£2,000 … … … … … −69 −30 −50 67 46 −35 4,100
£3,000 … … … … … −96 −38 −98 91 56 −86 6,200
£3,500 … … … … … −112 −45 −111 107 64 −97 7,200
£4,000 … … … … … −127 −86 −126 140 93 −106 8,200
£5,000 … … … … … −213 −170 −155 191 171 −175 10,300
£6,000 … … … … … −329 −258 −194 233 231 −317 12,300
£8,000 … … … … … −528 −401 −276 294 292 −620 16,500
£10,000 … … … … … −680 −546 −352 290 336 −952 20,600
£14,000 … … … … … −993 −756 −538 259 385 −1,643 28,800
£18,000 … … … … … −1,290 −1,054 −557 273 398 −2,230 37,000
£20,000 … … … … … −1,550 −1,051 −567 280 404 −2,483 41,200
£25,000 … … … … … −1,980 −1,044 −591 298 420 −2,897 51,400
Married couple
Earnings level in March 1974 March 1975 March 1976 March 1977 March 1978 March 1979 March 1974 to March 1979 Earnings level in March 1979
£ £ £ £ £ £ £
£2,000 … … … … … −58 −28 −45 88 44 +1 4,100
£3,000 … … … … … −85 −37 −93 112 53 −50 6,200
£3,500 … … … … … −100 −44 −103 124 62 −61 7,200
£4,000 … … … … … −115 −67 −118 157 74 −70 8,200
£5,000 … … … … … −182 −160 −144 218 154 −113 10,300
£6,000 … … … … … −306 −241 −184 268 218 −244 12,300
£8,000 … … … … … −503 −392 −257 329 291 −532 16,500
£10,000 … … … … … −654 −537 −333 342 336 −846 20,600
£14,000 … … … … … −965 −756 −514 316 384 −1,534 28,800
£18,000 … … … … … −1,251 −1,060 −546 330 397 −2,130 37,000
£20,000 … … … … … −1,511 −1,057 −555 337 404 −2,383 41,200
£25,000 … … … … … −1,951 −1,050 −580 355 419 −2,806 51,400
Married couple with one child under 11
Earnings level in March 1974 March 1975 March 1976 March 1977 March 1978 March 1979 March 1974 to March 1979 Earnings levels in March 1979
£ £ £ £ £ £ £
£2,000 … … … … … −52 −36 −41 90 63 +23 4,100
£3,000 … … … … … −80 −45 −89 114 72 −28 6,200
£3,500 … … … … … −95 −52 −99 126 81 −39 7,200
£4,000 … … … … … −110 −67 −110 147 92 −47 8,200
£5,000 … … … … … −159 −161 −138 205 165 −87 10,300
£6,000 … … … … … −291 −246 −169 249 224 −233 12,300
£8,000 … … … … … −488 −401 −241 303 293 −534 16,500
£10,000 … … … … … −639 −548 −316 317 333 −853 20,600
£14,000 … … … … … −951 −778 −491 285 377 −1,557 28,800
£18,000 … … … … … −1,227 −1,089 −536 300 390 −2,163 37,000
£20,000 … … … … … −1,487 −1,086 −546 307 396 −2,416 41,200
£25,000 … … … … … −1,936 −1,079 −570 324 412 −2,849 51,400
Married couple with two children under 11
Earnings level in March 1974 March 1975 March 1976 March 1977 March 1978 March 1979 March 1974 to March 1979 Earnings level in March 1979
£ £ £ £ £ £ £
£2,000 … … … … … −50 −34 −40 82 72 +31 4,100
£3,000 … … … … … −77 −42 −89 107 82 −20 6,200
£3,500 … … … … … −93 −49 −98 118 91 −31 7,200
£4,000 … … … … … −107 −61 −108 135 102 −39 8,200
£5,000 … … … … … −150 −154 −133 193 169 −76 10,300
£6,000 … … … … … −274 −246 −158 235 223 −219 12,300
£8,000 … … … … … −464 −410 −232 288 291 −527 16,500
£10,000 … … … … … −624 −588 −299 295 326 −860 20,600
£14,000 … … … … … −936 −800 −468 257 367 −1,580 28,800
£18,000 … … … … … −1,202 −1,118 −526 271 380 −2,195 37,000
£20,000 … … … … … −1,463 −1,115 −536 279 386 −2,449 41,200
£25,000 … … … … … −1,922 −1,107 −560 296 402 −2,891 51,400
Married couple with three children 2 under 11 and 1 aged between 11 and 16
Earnings level in March 1974 March 1975 March 1976 March 1977 March 1978 March 1979 March 1974 to March 1979 Earnings levels in March 1979
£ £ £ £ £ £ £
£2,000 … … … … … −49 −36 −40 74 82 +30 4,100
£3,000 … … … … … −77 −44 −89 98 91 −21 6,200
£3,500 … … … … … −92 −51 −98 110 100 −32 7,200
£4,000 … … … … … −107 −59 −107 122 111 −40 8,200
£5,000 … … … … … −143 −149 −129 179 170 −72 10,300
£6,000 … … … … … −258 −243 −164 226 221 −209 12,300
£8,000 … … … … … −439 −419 −227 274 288 −523 16,500
£10,000 … … … … … −610 −570 −291 280 319 −873 20,600
£14,000 … … … … … −923 −825 −446 228 356 −1,611 28,800
£18,000 … … … … … −1,179 −1,151 −520 242 369 −2,238 37,000
£20,000 … … … … … −1,439 −1,148 −529 249 375 −2,492 41,200
£25,000 … … … … … −1,910 −1,140 −554 267 391 −2,946 51,400
Married couple with four children 2 under 11 and 2 aged between 11 and 16
Earnings level in March 1974 March 1975 March 1976 March 1977 March 1978 March 1979 March 1974 to March 1979 Earnings level in March 1979
£ £ £ £ £ £ £
£2,000 … … … … … −49 −38 −41 66 91 +30 4,100
£3,000 … … … … … −76 −46 −89 90 100 −21 6,200
£3,500 … … … … … −91 −53 −98 102 109 −32 7,200
£4,000 … … … … … −106 −61 −108 113 120 −41 8,200
£5,000 … … … … … −136 −147 −123 166 172 −68 10,300
£6,000 … … … … … −243 −239 −150 216 218 −198 12,300
£8,000 … … … … … −423 −426 −217 260 284 −521 16,500
£10,000 … … … … … −597 −582 −285 267 311 −885 20,600
£14,000 … … … … … −910 −850 −425 198 345 −1,642 28,800
£18,000 … … … … … −1,163 −1,175 −513 212 358 −2,281 37,000
£20,000 … … … … … −1,415 −1,181 −523 220 364 −2,534 41,200
£25,000 … … … … … −1,897 −1,173 −547 237 380 −3,000 51,400

All these earnings levels except the first relates to above average earnings.

It has been assumed that the earnings levels stated relate to the year 1973–74 and are payable up to March 1974. These earnings have been increased in line with changes in the average earnings between the year 1973–74 and the year 1974–75 to give the levels in 1974–75—up to March 1975. The same procedure has been used each year to 1977–78. The average earnings figures used are the averages of the new earnings survey estimates for April at the start and finish of each tax year. The figures for the year 1977–78 have been increased by 10 per cent. to give the 1978–79 earnings level—up to March 1979.

The price index used is the general index of retail prices—all items—for March in each year, assuming, as stated, an increase of 8 per cent. between March 1978 and March 1979.

It has been assumed that family allowance would be given where it is beneficial to do so.

Net income is gross earnings less income tax and National Insurance contributions plus family allowance or child benefit.