HC Deb 02 December 1983 vol 49 cc633-6W
Mr. Dorrell

asked the Chancellor of the Exchequer if he will publish a table in the Official Report giving his latest estimates for 1983–84 of the following information for a single man, a married man and a married man with two children taking in each case, a man on 75 per cent. of average earnings, 100 per cent. average earnings, 200

1983–84 75 per cent. 100 per cent. 200 per cent. 500 per cent.
Multiples of average earnings
£ per week Per cent. of gross earnings £ per week Per cent, of gross earnings £ per week Per cent. of gross earnings £ per week Per cent. of gross earnings
Single Person
Gross earnings 128.48 171.30 342.60 856.50
Income tax 28.25 22.0 41.09 24.0 95.23 27.8 365.32 42.7
NI contributions 11.56 90 15.42 9.0 21.15 6.2 21.15 2.5
Net earnings 88.67 69.0 114.79 67.0 226.22 66.0 470.03 54.9
Indirect taxes 22.38 17.4 28.19 16.5
Married Couple
Gross earnings 128.48 171.30 342.60 856.50
Income tax 22.42 17.5 35.26 20.6 87.46 25.5 353.67 41.3
NI contributions 11.56 9.0 15.42 9.0 21.15 6.2 21.15 2.5
Net earnings 94.50 73.6 120.62 70.4 233.99 68.3 481.68 56.2
Indirect taxes 23.47 18.3 29.36 17.1
Married couple plus two children
Gross earnings 128.48 171.30 342.60 856.50
Income tax 22.42 17.5 35.26 20.6 87.46 25.5 353.67 41.3
NI contributions 11.56 9.0 15.42 9.0 21.15 6.2 21.15 2.5
Child benefit 12.17 9.5 12.17 7.1 12.17 3.6 12.17 1.4
Net earnings 106.67 83.0 132.79 77.5 246.16 71.9 493.85 57.7
Indirect taxes 25.54 19.9 30.65 17.9

Mr. Dorrell

asked the Chancellor of the Exchequer if he will publish for tax years 1982–83 and 1983–84 the following information for (i) a single person, (ii) a married man without children, (iii) a married man with two children aged under 11, (iv) a married man with four children: (a) the tax threshold at current prices, (b) the tax threshold at 1949–50 prices (index 1949–50=100), (c) the tax threshold as a percentage of average manual earnings, (d) tax-free income at current prices, (e) tax-free income at 1949–50 prices (index 194950=100), (f) tax-free income as a percentage of average income, (g) break-even

Single person Married man without children
Tax year Threshold at current prices Threshold at 1949–50 prices Threshold as percentage of average manual earnings percentage Threshold at current prices Threshold at 1949–50 prices Threshold as percentage of average manual earnings percentage
£ Index 1949–50=100 £ Index 1949–50=100
1982–83 1,565 115.1 21.8 2,445 112.9 34.1
1983–84* 1,785 125.3 23.2 2,795 123.2 36.4
* Provisional.

per cent. average earnings and 500 per cent. average earnings (a) gross earnings, (b) income tax payable, (c) (b) as a percentage of (a), (d) national insurance contributions, (e)(d) as a percentage of (a), (f) child benefit, (g) (f) as a percentage of (a), (i) net earnings, (j) (i) as a percentage of (a), (k) indirect taxes, and (l)(k) as a percentage of (a)

Mr. Moore

The following table gives the information requested. Estimates of indirect tax payments are unreliable above 1.5 times average earnings and so are not shown for the two higher income categories. The average gross earnings figure of £171–30 in 1983–84 represents an assumed increase over 1982–83 of 7 per cent. in line with what was assumed by the Government Actuary in his recent report.

point at current prices, (h) break-even point at 1949–50 prices (index 1949–50=100), (i) break-even point as a percentage of average manual earnings.

Mr.. Moore

The information is shown in the following table. For purposes of illustration, between 1982–83 and 1983–84, earnings have been assumed to increase by 7 per cent. and retail prices by 5 per cent. Information on the definition of the items shown in the table is contained in the article "Tax Thresholds" in "Inland Revenue Statistics 1980". Later editions of that publication update the tables in the earlier article.

Tax year
1982–83 1983–84*
Married man with two children
Threshold at current prices £ 2,445 2,795
Threshold at 1949–50 prices Index† 71.1 77.6
Threshold as percentage of average manual earnings per cent. 34.1 36.4
Tax-free income at current prices £ 3,014 3,428
Tax-free income at 1949–50 prices Index† 84.6 91.6
Tax-free income as percentage of average income‡ per cent. 38.9 41.2
Break-even point at current prices £ 4,341 4,905
Break-even point at 1949–50 prices Index† 102.6 110.5
Break-even point as percentage of average manual earnings per cent. 60.5 63.9
Married man with four children
Threshold at current prices £ 2,445 2,795
Threshold at 1949–50 prices Index† 53.2 58.1
Threshold as percentage of average manual earnings per cent. 34.1 36.4
Tax-free income at current prices £ 3,583 4,061
Tax-free income at 1949–50 prices Index† 72.4 78.0
Tax-free income as percentage of average income‡ per cent. 43.1 45.4
Break-even point at current prices £ 6,237 7,016
Break-even point at 1949–50 prices Index† 97.5 104.5
Break-even point as percentage of average manual earnings per cent. 86.9 91.3

Multiple of average earnings*
½ ¾ 1 1½ 2
Single person 1982–83 27.5 31.2 33.1 34.3 34.6
1983–84 27.0 31.0 33.0 34.2 34.0
Married couple 1982–83 21.1 27.0 29.9 32.1 32.5
1983–84 20.2 26.4 29.6 32.0 31.7
Married plus 1 1982–83 19.8 25.8 28.9 31.4 31.9
1983–84 18.8 25.3 28.6 31.2 31.1
Married plus 2 1982–83 18.6 24.8 28.0 30.7 31.4
1983–84 17.7 24.2 27.6 30.5 30.6
Married plus 4 1982–83 16.6 22.8 26.3 29.5 30.4
1983–84 15.7 22.2 25.9 29.2 29.6
* For full-time adult males (all occupations) in Great Britain.

Mr. Dorrell

asked the Chancellor of the Exchequer if he will publish a table in the Official Report which sets out for a two-child family on (a) half average earnings, (b) three quarters average earnings, (c) average earnings, (d) one and a half average earnings, (e) twice average earnings, the increase in net income per week to be derived from (i) a 1p cut in basic rate of income tax, (ii) an increase in personal allowance which incurred the same revenue loss to the Treasury as a 1p cut in basic rate income tax, and (iii) an increase in child benefit which incurred the same revenue loss to the Treasury as a 1p cut in the basic rate of income tax.

Mr. Moore

Information for 1984–85 consistent with the assumptions of the autumn statement is in the following table. In particular, income tax changes have been taken on top of indexation of allowances and thresholds by the illustrative 5 per cent. shown in table 4.1 of the autumn statement and earnings have been assumed to increase by 6.5 per cent. between 1983–84 and 1984–85. The changes in (ii) and (iii) have been calculated so as to

* Provisional.

† 1949–50=100.

‡ Average income is defined as the average earnings of a full-time adult male maual worker plus child benefit where appropriate.

Mr. Dorrell

asked the Chancellor of the Exchequer if he will publish a table in the Official Report which sets out for 1982–83 and 1983–84 the percentage of income paid in income tax and national insurance contributions by (a) a single person, (b) a married couple without children, (c) a married couple with one child, (d) a married couple with two children, (e) a married couple with four children on the following income levels: (i) half average earnings, (ii) three quarters average earnings, (iii) average earnings, (iv) one and a half times average earnings, and (v) twice average earnings.

Mr. Moore

The following table shows income tax plus national insurance contributions — at the not contracted-out rate—as a percentage of earnings plus child benefit, where appropriate. Figures calculated in this way are not directly comparable with years when child tax allowances were available. For purposes of illustration, earnings have been assumed to increase by 7 per cent. between 1982–83 and 1983–84. The table assumes that no reliefs other than the appropriate personal allowance or available.

be revenue neutral with (i) in a full year. In (ii) it is assumed that all the main personal allowances are increased by the same percentage; and savings in payments of supplementary benefit have been taken into account in (iii). Taxpayers are assumed to have no reliefs apart from the married man's allowance.

MARRIED COUPLE WITH TWO CHILDREN
Increase in net income (£ per week) 1984–85
Multiple of average earnings for males in all occupations (GB)
½ ¾ 1 1½ 2
(i) 0.35 0.80 1.26 2.17 2.96
(ii) 0.92 0.92 0.92 0.92 1.23
(iii) 3.90 3.90 3.90 3.90 3.90