HC Deb 22 January 1980 vol 977 cc176-91W
Miss Richardson

asked the Chancellor of the Exchequer if he will list the proportion of income, including family allowance or child benefit, paid in tax and national insurance contributions for each year since 1945 by (a) a single person, (b) a childless couple, (c) a couple with one child aged under 11 years, (d) a couple with two children, both aged under 11 years, (e) a couple with two children, one aged under 11 and one aged 11 to 16 years and (f) a couple with four children, two aged under 11 and two aged 11 to 16 years on half average earnings, three-quarters average earnings, average earnings and one and a half times average earnings, and twice average earnings.

Mr. Peter Rees

The figures are shown in the tables. I regret that figures for every year between 1945–46 and 1964–65 could be provided only at disproportionate costs.

For years up to 1969–70, the average earnings are the average weekly earnings of male manual workers aged 21 and over in manufacturing and certain other industries at October in each year. For 1970–71 to 1978–79 the figures are the averages of the figures obtained in the new earnings survey of the average weekly earnings of full-time adult male manual workers at the April of the beginning and end of each year. For 1979–80 the estimated level of earnings for September 1979—the latest month for which a figure of average earnings is available—has been used. This has been obtained by updating the figure in the new earnings survey for April 1979 of average earnings of full-time adult male manual workers taking account of the movements in a centred three-month moving average of the monthly index of average earnings of all employees covering the whole economy. Where appropriate, the figures of income include family allowance or child benefit, in addition to earnings.

It has been assumed that the employees were not contracted out of the earnings-related or graduated pension schemes.

PERCENTAGE OF INCOME PAID IN TAX AND NATIONAL INSURANCE CONTRIBUTIONS
Half average Earnings Three-quarters Average Earnings Average Earnings One and a half times Average Earnings Two times Average Earnings
Tax NIC Tax NIC Tax NIC Tax NIC Tax NIC
Single Person
1945–46 … … … 12.6 3.1 18.1 2.0 23.0 1.6 30.4 1.0 34.1 0.8
1950–51 … … … 2.6 6.5 8.0 4.4 11.0 3.3 17.5 2.2 22.1 1.6
1955–56 … … … 3.7 5.9 8.6 3.9 12.7 3.0 18.9 2.0 22.4 1.5
1960–61 … … … 6.1 6.8 11.0 4.6 15.1 3.4 20.1 2.3 22.6 1.7
1964–65 … … … 7.1 6.5 12.8 5.7 17.2 5.3 21.5 3.6 23.6 2.7
1965–66 … … … 8.4 7.4 14.5 6.3 18.9 5.4 23.3 3.6 25.5 2.7
1966–67 … … … 8.9 7.2 15.1 6.3 19.3 5.5 23.6 3.7 25.7 2.8
1967–68 … … … 9.7 7.5 16.0 6.6 20.0 5.5 24.0 3.8 26.0 2.8
1968–69 … … … 10.6 8.2 17.1 7.4 20.8 5.6 24.6 3.9 26.5 2.9
1969–70 … … … 11.5 8.4 18.2 7.1 21.7 5.7 25.1 4.1 26.9 3.0
1970–71 … … … 13.7 8.0 19.8 6.7 22.9 5.8 26.0 4.0 27.5 3.0
1971–72 … … … 14.6 7.7 19.8 6.5 22.4 5.8 25.0 4.4 26.2 3.3
1972–73 … … … 10.8 7.3 17.3 6.4 20.5 5.9 23.4 4.8 25.3 3.6
1973–74 … … … 13.2 7.0 18.8 6.3 21.6 5.9 24.4 4.8 25.8 3.6
1974–75 … … … 17.0 6.5 22.3 6.1 25.0 5.9 27.7 4.7 29.0 3.5
1975–76 … … … 20.0 5.5 25.0 5.5 27.5 5.5 30.0 4.2 32.6 3.1
1976–77 … … … 20.5 5.7 25.3 5.8 27.8 5.8 30.2 4.0 33.0 4.0
1977–78 … … … 17.8 5.8 23.2 5.7 25.9 5.8 28.6 5.3 31.0 4.0
1978–79 … … … 14.5 6.5 20.7 6.5 23.7 6.5 26.8 6.0 28.4 4.5
1979–80 (September) … 15.0 6.5 20.0 6.5 22.5 6.5 25.0 5.9 26.3 4.4
MARRIED COUPLE WITHOUT CHILDREN
Half average Earnings Three-quarters Average Earnings Average Earnings One and a half times Average Earnings Two times Average Earnings
Tax NIC Tax NIC Tax NIC Tax NIC Tax NIC
1945–46 … … … 0.1 3.1 9.9 2.0 14.7 1.6 24.0 1.0 29.3 0.8
1950–51 … … … — 6.5 2.1 4.4 6.5 3.3 12.1 2.2 18.1 1.6
1955–56 … … … — 5.9 3.2 3.9 7.0 3.0 14.0 2.0 18.8 1.5
1960–61 … … … 1.0 6.8 5.8 4.6 10.2 3.4 16.7 2.3 20.1 1.7
1964–65 … … … 1.0 6.5 7.4 5.7 12.2 5.3 18.2 3.6 21.2 2.7
1965–66 … … … 2.2 7.4 8.6 6.3 14.0 5.4 20.0 3.6 23.1 2.7
1966–67 … … … 2.7 7.2 9.2 6.3 14.7 5.5 20.5 3.7 23.4 2.8
1967–68 … … … 3.3 7.5 10.0 6.6 15.5 5.5 21.1 3.8 23.8 2.8
1968–69 … … … 4.6 8.2 11.6 7.4 16.7 5.6 21.8 3.9 23.4 2.9
1969–70 … … … 5.9 8.4 13.1 7.1 17.8 5.7 22.6 4.1 25.0 3.0
1970–71 … … … 5.8 8.0 14.5 6.7 18.9 5.8 23.3 4.0 25.5 3.0
1971–72 … … … 7.9 7.7 15.3 6.5 19.0 5.8 22.7 4.4 24.6 3.3
1972–73 … … … 4.9 7.3 13.3 6.4 17.5 5.9 21.7 4.8 23.8 3.6
1973–74 … … … 8.1 7.0 15.4 6.3 19.0 5.9 22.7 4.8 24.5 3.6
1974–75 … … … 10.9 6.5 18.3 6.1 21.9 5.9 25.6 4.7 27.5 3.5
1975–76 … … … 13.7 5.5 20.8 5.5 24.4 5.5 27.9 4.2 30.6 3.1
1976–77 … … … 13.6 5.7 20.8 5.8 24.3 5.8 27.9 5.3 30.7 4.0
1977–78 … … … 9.0 5.8 17.3 5.7 21.5 5.8 25.7 5.3 28.1 4.0
1978–79 … … … 8.0 6.5 16.3 6.5 20.5 6.5 24.6 6.0 26.7 4.5
1979–80 (September) … 7.5 6.5 15.0 6.5 18.7 6.5 22.5 5.9 24.4 4.4
MARRIED COUPLE WITH ONE CHILD UNDER 11
Half average Earnings Three-quarters Average Earnings Average Earnings One and a half times Average Earnings Two times Average Earnings
Tax NIC Tax NIC Tax NIC Tax NIC Tax NIC
1945–46 … … … — 3.1 3.1 2.0 9.6 1.6 18.7 1.0 25.3 0.8
1950–51 … … … — 6.5 — 4.4 2.7 3.3 8.4 2.2 14.6 1.6
1955–56 … … … — 5.9 — 3.9 2.9 3.0 9.4 2.0 15.1 1.5
1960–61 … … … — 6.8 2.1 4.6 6.1 3.4 13.3 2.3 17.5 1.7
1964–65 … … … — 6.5 2.6 5.7 7.7 5.3 15.0 3.6 18.8 2.7
1965–66 … … … — 7.4 4.2 6.3 9.3 5.4 19.6 3.6 20.7 2.7
1966–67 … … … — 7.2 4.9 6.3 10.1 5.5 17.5 3.7 21.1 2.8
1967–68 … … … — 7.5 5.7 6.6 11.3 5.5 18.2 3.8 21.7 2.8
1968–69 … … … 0.3 8.2 7.0 7.4 12.7 5.6 19.2 3.9 22.4 2.9
1969–70 … … … 0.6 8.4 8.2 7.1 14.2 5.7 20.1 4.1 23.1 3.0
1970–71 … … … — 8.0 10.2 6.7 15.7 5.8 21.2 4.0 23.9 3.0
1971–72 … … … 0.4 7.7 10.3 6.5 15.3 5.8 20.2 4.4 22.7 3.3
1972–73 … … … — 7.3 9.0 6.4 14.3 5.9 19.6 4.8 22.2 3.6
1973–74 … … … 2.4 7.0 11.65 6.3 16.2 5.9 20.8 4.8 23.1 3.6
1974–75 … … … 4.8 6.5 14.2 6.1 18.9 5.9 23.6 4.7 25.9 3.5
1975–76 … … … 8.4 5.5 17.2 5.5 21.7 5.5 26.1 4.2 28.9 3.1
1976–77 … … … 7.7 5.7 16.8 5.8 21.3 5.8 25.9 5.3 28.8 4.0
1977–78 … … … 5.5 5.6 14.8 5.6 19.6 5.7 24.3 5.2 26.9 3.9
1978–79 … … … 6.5 6.1 14.7 6.2 19.2 6.3 23.7 5.9 26.0 4.4
1979–80 (September) … 6.9 6.0 14.2 6.2 18.0 6.2 21.9 5.7 23.9 4.3
MARRIED COUPLE WITH TWO CHILDREN UNDER 11
Half average Earnings Three-quarters Average Earnings Average Earnings One and a half times Average Earnings Two times Average Earnings
Tax NIC Tax NIC Tax NIC Tax NIC Tax NIC
1945–46 … … … — 3.1 — 2.0 4.4 1.6 13.4 1.0 21.4 0.8
1950–51 … … … — 6.1 — 4.2 0.5 3.2 6.2 2.2 11.6 1.6
1955–56 … … … — 5.5 — 3.8 0.4 2.9 6.1 1.9 11.8 1.4
1960–61 … … … — 6.5 0.1 4.4 3.2 3.3 10.2 2.2 15.1 1.7
1964–65 … … … — 6.2 — 5.6 4.5 5.2 12.1 3.5 16.3 2.6
1965–66 … … … — 7.1 1.1 6.1 5.9 5.3 14.1 3.6 18.5 2.7
1966–67 … … … — 7.0 1.5 6.1 6.5 5.4 14.7 3.6 19.0 2.7
1967–68 … … … — 7.3 2.2 6.4 7.4 5.7 15.6 3.7 19.6 2.8
1968–69 … … … — 8.0 5.2 7.0 10.8 5.6 17.7 3.8 21.2 2.8
1969–70 … … … — 7.8 6.7 6.8 12.5 5.5 18.9 3.9 22.1 2.9
1970–71 … … … — 7.5 8.5 6.4 14.2 5.7 20.0 4.0 23.3 3.0
1971–72 … … … — 7.2 7.6 6.2 13.1 5.6 18.7 4.3 21.5 3.2
1972–73 … … … — 6.9 6.6 6.2 12.3 5.8 18.2 4.7 21.1 3.5
1973–74 … … … — 6.7 9.6 6.1 14.6 5.8 19.7 4.7 22.2 3.5
1974–75 … … … 1.1 6.3 11.5 6.0 16.8 5.8 22.1 4.6 24.8 3.5
1975–76 … … … 5.6 5.2 15.1 5.3 20.0 5.4 24.9 4.1 27.4 3.1
1976–77 … … … 4.2 5.5 14.1 5.6 19.3 5.6 24.4 5.3 27.4 4.0
1977–78 … … … 2.5 5.4 12.6 5.5 17.8 5.6 23.1 5.2 25.8 3.9
1978–79 … … … 5.2 5.8 13.3 6.0 17.9 6.1 22.8 5.8 25.3 4.4
1979–80 (September) … 6.4 5.6 13.5 5.9 17.3 6.0 21.3 5.6 23.4 4.2
MARRIED COUPLE WITH ONE CHILD 11 AND ONE CHILD 11–16 YEARS
Half average Earnings Three-quarters Average Earnings Average Earnings One and a half times Average Earnings Two times Average Earnings
Tax NIC Tax NIC Tax NIC Tax NIC Tax NIC
1945–46 … … … — 3.1 — 2.0 4.4 1.6 13.4 1.0 21.4 0.8
1950–51 … … … — 6.1 — 4.2 0.5 3.2 6.2 2.2 11.6 1.6
1955–56 … … … — 5.5 — 3.8 0.4 2.9 6.1 1.9 11.8 1.4
1960–61 … … … — 6.5 — 4.4 2.5 3.3 9.4 2.2 14.5 1.7
1964–65 … … … — 6.2 — 5.6 3.7 5.2 11.5 3.5 16.0 2.6
1965–66 … … … — 7.1 0.4 6.1 5.2 5.3 13.4 3.6 18.0 2.7
1966–67 … … … — 7.0 0.9 6.1 5.8 5.4 14.1 3.6 18.5 2.7
1967–68 … … … — 7.3 1.6 6.4 6.7 5.7 14.9 3.7 19.2 2.8
1968–69 … … … — 8.0 4.4 7.0 9.9 5.6 17.2 3.8 20.8 2.8
1969–70 … … … — 7.8 5.9 6.8 11.8 5.5 18.4 3.9 21.7 2.9
1970–71 … … … — 7.5 7.6 6.4 13.5 5.7 19.6 4.0 22.6 3.0
1971–72 … … … — 7.2 6.8 6.2 12.5 5.6 18.2 4.3 21.2 3.2
1972–73 … … … — 6.9 5.9 6.2 11.8 5.8 17.8 4.7 20.9 3.5
1973–74 … … … — 6.7 9.0 6.1 14.1 5.8 19.3 4.7 22.0 3.5
1974–75 … … … 0.2 6.3 10.9 6.0 16.3 5.8 21.8 4.6 24.6 3.5
1975–76 … … … 4.9 5.2 14.6 5.3 19.6 5.4 24.6 4.1 27.5 3.1
1976–77 … … … 3.5 5.5 13.7 5.6 18.9 5.6 24.2 5.3 27.2 4.0
1977–78 … … … 2.0 5.4 12.2 5.5 17.5 5.6 22.9 5.2 25.6 3.9
1978–79 … … … 4.8 5.8 13.0 6.0 17.7 6.1 22.6 5.8 25.3 4.4
1979–80 (September) … 6.4 5.6 13.5 5.9 17.3 6.0 21.3 5.6 23.4 4.2
MARRIED COUPLE WITH TWO CHILDREN UNDER 11 AND TWO CHILDREN 11–16 YEARS
Half average Earnings Three-quarters Average Earnings Average Earnings One and a half times Average Earnings Two times Average Earnings
Tax NIC Tax NIC Tax NIC Tax NIC Tax NIC
1945–46 … … … — 3.1 — 2.0 — 1.6 5.8 1.0 13.4 0.8
1950–51 … … … — 5.4 — 3.9 — 3.0 2.0 2.1 6.3 1.6
1955–56 … … … — 4.8 — 3.4 — 2.7 1.1 1.8 6.0 1.4
1960–61 … … … — 5.7 — 4.1 — 3.1 3.8 2.1 9.5 1.6
1964–65 … … … — 5.6 — 5.2 — 5.0 5.5 3.4 11.4 2.6
1965–66 … … … — 6.4 — 5.7 — 5.1 7.4 3.5 13.4 2.6
1966–67 … … … — 6.4 — 5.8 0.5 5.0 8.2 3.5 14.0 2.7
1967–68 … … … — 6.6 — 6.0 1.3 5.1 9.5 3.6 14.9 2.7
1968–69 … … … — 6.7 1.2 6.4 5.9 5.2 14.0 3.6 18.3 2.7
1969–70 … … … — 6.8 3.0 6.1 8.3 5.1 15.7 3.8 19.6 2.8
1970–71 … … … — 6.6 4.0 5.9 12.4 5.0 17.1 3.8 20.7 2.9
1971–72 … … … — 6.5 1.4 5.8 10.2 5.0 15.0 4.1 18.6 3.1
1972–73 … … … — 6.3 1.2 5.8 9.9 5.4 14.9 4.5 18.6 3.4
1973–74 … … … — 6.1 4.8 5.7 12.3 5.5 16.8 4.5 20.0 3.4
1974–75 … … … — 5.9 5.5 5.7 13.7 5.6 18.7 4.5 22.2 3.4
1975–76 … … … — 4.8 10.3 5.0 17.6 5.1 22.0 4.0 25.3 3.0
1976–77 … … … — 5.1 8.4 5.3 16.4 5.4 21.2 5.1 24.6 3.9
1977–78 … … … — 5.0 7.7 5.2 16.6 5.7 20.2 5.0 23.6 3.8
1978–79 … … … 2.3 5.3 10.1 6.5 15.2 5.8 20.7 5.5 23.6 4.2
1979–80 (September) … 5.6 4.9 12.3 5.3 16.1 5.6 20.3 5.3 22.5 4.1

Miss Richardson

asked the Chancellor of the Exchequer if he will list for each year since 1969–70 including his estimate for 1979–80 the average real weekly net income, expressed in December 1979 prices, of a man on half average earnings, three-quarters average earnings, average earnings, one and a half times average earnings and twice average earnings who

AVERAGE REAL WEEKLY NET INCOME AT NOVEMBER 1979 PRICES
Single Married Married with one child under 11 years Married with two children under 11 years Married with two children, one under 11, one 11–16 years Married with four children, two under 11, two 11–16 years
1969–70— £ £ £ £ £ £
½ Average earnings … 33.90 36.30 38.60 41.90 41.90 48.70
¾ Average earnings … 47.50 50.70 53.90 57.70 58.10 66.80
Average earnings … 61.50 64.80 67.90 72.00 72.70 81.90
1½ Average earnings … 90.10 93.30 96.40 100.50 101.20 110.40
2 X Average earnings … 118.80 122.10 125.20 129.30 130.00 139.20
1970–71—
½ Average earnings … 35.00 38.50 41.10 44.00 44.00 50.30
¾ Average earnings … 49.30 52.80 55.70 59.50 60.10 68.80
Average earnings … 63.70 67.20 70.10 73.90 74.60 83.20
1½ Average earnings … 93.80 97.40 100.30 104.10 104.70 112.70
2 X Average earnings … 124.20 127.70 130.60 134.40 135.10 143.70
1971–72—
½ Average earnings … 35.30 38.30 41.70 44.50 44.50 50.30
¾ Average earnings … 50.20 53.20 56.60 60.90 61.40 71.00
Average earnings … 65.20 68.20 71.60 75.90 76.40 86.00
1½ Average earnings … 96.10 99.20 102.50 106.80 107.40 116.0
2 X Average earnings … 127.80 130.90 134.20 138.50 140.10 148.60
1972–73—
½ Average earnings … 39.50 42.40 44.70 47.20 47.20 52.60
¾Average earnings … 55.30 58.10 61.30 65.30 65.80 74.70
Average earnings … 71.00 73.90 77.00 81.00 81.50 90.40
1½ Average earnings … 103.50 106.40 109.50 113.50 114.00 122.90
2 X Average earnings … 137.30 140.10 143.20 147.20 147.80 156.60
1973–74—
½ Average earnings … 40.20 42.70 45.60 49.00 49.00 54.00
¾ Average earnings … 56.50 59.10 62.00 65.50 66.00 73.90
Average earnings … 72.90 75.50 78.30 81.90 82.40 90.30
1½ Average earnings … 106.90 109.50 112.30 115.90 116.40 124.30
2 X Average earnings … 142.10 144.70 147.50 151.10 151.60 159.50
1974–75—
½ Average earnings … 39.70 42.90 46.00 49.80 50.30 54.60
¾Average earnings … 55.70 58.80 62.00 65.80 66.20 74.50
Average earnings … 71.70 74.90 78.00 81.80 82.30 90.50
1½ Average earnings … 105.40 108.50 111.70 115.50 115.90 124.20
2 X Average earnings … 140.00 143.30 146.50 150.20 150.70 159.00
1975–76—
½ Average earnings … 37.80 40.90 43.60 47.40 47.80 55.40
¾ Average earnings … 52.80 56.00 58.70 62.50 62.90 70.80
Average earnings … 68.00 71.10 73.80 77.50 77.90 85.80
1½ Average earnings … 100.00 103.20 105.90 109.70 110.00 118.00
2 X Average earnings … 130.20 134.30 137.70 141.80 142.30 150.60
1976–77—
½ Average earnings … 36.60 40.10 43.00 46.90 47.20 53.40
¾Average earnings … 51.40 54.80 57.70 61.60 61.90 70.00
Average earnings … 66.10 69.50 72.50 76.32 76.70 84.70
1½ Average earnings … 96.20 99.60 102.50 106.40 106.70 114.80
2 X Average earnings … 125.40 129.80 133.50 137.90 138.30 146.90

is (a) single, (b) married with no children, (c) married with one child aged under 11 years, (d) with two children aged under 11 years, (e) with two children, one aged under 11 and one aged 11–16 years and (f) with four children, two aged under 11 and two aged 11 to 16th years.

Mr. Peter Rees

The figures are as follows:

Single Married Married with one child under 11 years Married with two children under 11 years Married with two children, one under 11, one 11–16 years Married with four children, two under 11, two 11–16 years
1977–78— £ £ £ £ £ £
½Average earnings … 37.10 41.40 44.30 47.60 47.90 52.80
¾ Average earnings … 51.80 56.00 58.90 62.30 62.60 69.50
Average earnings … 66.40 70.70 73.60 76.90 72.20 84.20
1½ Average earnings … 96.40 100.60 103.50 106.90 107.20 114.10
2 X Average earnings … 127.00 132.00 135.20 138.80 139.10 146.20
1978–79
½ Average earnings … 39.70 43.80 47.40 51.00 51.20 58.50
¾ Average earnings … 55.20 59.30 63.10 66.90 67.10 74.90
Average earnings … 70.70 74.80 78.60 82.40 82.60 90.40
1½ Average earnings … 102.40 106.60 110.30 114.10 114.40 122.20
2 X Average earnings … 136.70 140.90 144.60 148.40 148.70 156.50
1979–80 (September)—
½ Average earnings … 39.30 43.10 47.10 51.20 51.20 59.20
½ Average earnings … 55.20 59.00 63.00 67.10 67.10 75.10
Average earnings … 71.10 74.90 78.90 83.00 83.00 91.00
1½ Average earnings … 103.80 107.60 111.70 115.70 115.70 123.80
2 X Average earnings … 138.90 142.70 146.70 150.80 150.80 158.80

For 1969–70 the average earnings are the average weekly earnings of male manual workers aged 21 and over in manufacturing and certain other industries in October 1969. For 1970–71 to 1978–79 the average earnings figures are the averages of the figures obtained in the new earnings survey of the average weekly earnings of full-time adult male manual employees, at the April of the beginning and end of each year. For 1979–80 the estimated level of earnings for September 1979—the latest month for which a figure of average earnings is available—has been used.