HC Deb 23 April 1982 vol 22 cc158-60W
Sir Brandon Rhys Williams

asked the Chancellor of the Exchequer if he will publish tables similar to those in "Income tax and indirect tax: the main proposals", showing for single wage married couples with each of two and four children the effects of income tax, national insurance contribution and child benefit changes between 1981–82 and 1982–83 on net incomes, assuming a 7½ per cent. increase in earning.

Mr. Ridley

[pursuant to his reply, 21 April 1982, c. 94]: The tables requested are attached. In the final column percentage changes are shown for net income after tax and NIC—that is earnings plus child beneit less tax and NIC£

Notes to table

(1) The figures of child benefit are the total received in the financial year.

(2) National insurance contributions are at the class 1 rate for employment not contracted out of the State additional (earnings related) pension scheme.

(3) Earnings in 1982–83 are taken to be 71/2 per cent. higher than in 1981–82.

Income in 1981–82 Charge for 1981–82 Income in 1982–83 Charge for 1982–83
Earnings Child* Benefit Total Income Income Tax NIC† Percentage of total income taken in tax and NIC Earnings‡ Child* Benefit Total Income Income Tax NIC† Percentage of total income taken in tax and NIC Percentage change in income after tax and NIC
Two child family
3,000 513 3,513 256 232 13.9 3,225 569 3,794 234 282 13.6 8.4
4,000 513 ,4,513 556 310 19.2 4,300 569 4,869 556 376 19.1 8.0
6,000 513 6,513 1,156 465 24.9 6,450 569 7,019 1,201 564 25.1 7.4
8,000 513 8,513 1,756 620 27.9 8,600 569 9,169 1,846 752 28.3 7.1
10,000 513 10,513 2,356 775 29.8 10,750 569 11,319 2,491 941 30.3 6.8
15,000 513 15,513 4,017 806 31.1 16,125 569 16,694 4,192 1,001 31.1 7.6
20,000 513 20,513 6,302 806 34.7 21,500 569 22,069 6,540 1,001 34.2 8.4
25,000 513 25,513 8,833 806 37.8 26,875 569 27,444 9,225 1,001 37.3 8.5
40,000 513 40,513 17,588 806 45.4 43,000 569 43,569 18,503 1,001 44.8 8.8
Four child family
3,000 1,026 4,026 256 232 12.1 3,225 1,138 4,363 234 282 11.8 8.7
4,000 1,026 5,026 256 310 17.2 4,300 1,138 5,438 556 376 17.1 8.3
6,000 1,026 7,026 1,156 465 23.1 6,450 1,138 7,588 1,201 564 23.3 7.7
8,000 1,026 9,026 1,756 620 26.3 8,600 1,138 9,738 1,846 752 26.7 7.4
10,000 1,026 11,026 2,356 775 28.4 10,750 1,138 11,888 2,491 941 28.9 7.1
15,000 1,026 16,026 4,017 806 30.1 16,125 1,138 17,263 4,192 1,001 30.1 7.7
20,000 1,026 21,026 6,302 806 33.8 21,500 1,138 22,638 6,540 1,001 33.3 8.5
25,000 1,026 26,026 8,833 806 37.0 26,875 1,138 28,013 9,225 1,001 36.5 8.5
40,000 1,026 41,026 17,588 806 44.8 43,000 1,138 44,138 18,503 1,001 44.2 8.8