Taxation (Hansard, 27 March 1986)

§ Mr. Rooker
asked the Chancellor of the Exchequer if he will construct an index, with 1978–79 equalling 100, of the changes in the level of income tax and national insurance contributions for each subsequent year for a taxpayer on (a) half, (b) two thirds, (c) average, (d) five times and (e) 10 times average earnings for households where the taxpayer is (i) single, (ii) married, no children, (iii) married with two children and (iv) married with four children, in all cases assuming the wife does not work.

§ Mr. Moore
[pursuant to his reply, 21 March 1986, c. 307–8]: The following table shows (a) income tax plus national insurance contributions less child benefit, where appropriate, as a percentage of gross earnings; and (b) real net income after income tax, national insurance contributions and child benefit in index number form with 1978–79 equalling 100. The calculations assume that the taxpayer has no reliefs other than the appropriate personal allowance and that national insurance contributions are at the contracted-in rate. Average earnings are those for full-time males paid at adult rates whose pay was not affected by absence. Figures for 1985–86 and 1986–87 are provisional.
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Half Two-thirds One Five Ten

(a) (b) (a) (b) (a) (b) (a) (b) (a) (b)

1985–86 19.0 110.8 24.0 111.8 29.0 113.0 44.1 129.8 52.1 164.6

1986–87 18.9 114.8 23.7 116.1 28.5 117.7 44.2 133.8 52.1 169.9

Married with 2 children (borh under 11)

1978–79 2.4 100.0 11.5 100.0 20.9 100.0 48.8 100.0 65.6 100.0

1979–80 1.4 102.8 10.2 103.3 18.9 104.1 40.0 119.1 50.0 147.9

1980–81 4.9 102.4 12.9 103.5 20.8 105.1 41.6 119.7 50.8 150.3

1981–82 7.3 99.5 14.9 100.7 22.5 102.5 43.9 114.6 51.9 146.3

1982–83 6.9 100.6 14.9 101.5 22.8 102.8 43.2 116.8 51.6 148.4

1983–84 5.9 105.6 14.2 106.2 22.4 107.2 42.3 123.2 51.2 155.5

1984–85 5.0 109.8 13.5 110.2 22.0 111.1 42.4 126.6 51.2 159.9

1985–86 5.2 111.7 13.7 112.2 22.1 113.1 42.7 128.5 51.4 162.6

1986–87 5.7 114.9 13.8 115.9 21.9 117.4 42.9 132.4 51.5 167.8

Married with 4 children (two under 11, one 11–15 and one over 16)

1978–79 -11.7 100.0 0.2 100.0 13.3 100.0 46.7 100.0 64.5 100.0

1979–80 -13.3 103.1 -0.8 102.7 11.6 103.6 38.5 117.3 49.3 145.5

1980–81 -8.1 101.7 3.1 102.0 14.3 103.8 40.3 117.7 50.2 147.7

1981–82 -6.2 99.5 4.8 99.8 15.8 101.7 42.5 112.9 51.3 143.9

1982–83 -7.0 101.0 4.5 100.9 15.9 102.3 41.8 115.1 50.9 146.0

1983–84 -8.4 106.1 3.5 105.8 15.3 106.9 40.9 121.4 50.4 153.0

1984–85 -9.3 110.3 2.8 109.8 14.8 110.7 41.0 124.8 50.5 157.4

1985–86 -8.6 111.7 3.3 111.3 15.2 112.4 41.3 126.6 50.7 159.9

1986–87 -7.5 114.4 3.9 114.5 15.2 116.2 41.6 130.3 50.8 164.9

§ Mr. Frank Field
asked the Chancellor of the Exchequer if he will present in tabular form data for the financial years 1978–79 and 1986–87 on (a) the tax threshold for (i) a single person, (ii) a married couple and (iii) a married couple with two children and (b) the eligibility for supplementary benefit for each of these groups taking the latest data on average housing costs and assuming for the two child family one child is above and one below the age of 11 years; and what is the eligibility for family income supplement for a family with two children.

§ Mr. Moore
[pursuant to his reply, 26 March 19861: The information is as follows:

(i) Income tax allowances

1978–79 £ per week 1986–87 £ per week

Single person 985 18.94 2,335 44.90

Married couple 1,535 29.52 3,655 70.29

Married couple with two children* 1,770 34.04 3,655 70.29

* One child aged under 11, one aged between 11 and 15.

(ii) Supplementary benefit eligibility levels*

†1978–79 ‡1986–87

Short Term Rate £ Long Term Rate £ Short Term Rate £ Long Term Rate £

Single Person║ 15.55 19.90 29.80 37.90

Married couple 25.55 31.55 48.40 60.65

Married couple with two children¶ 37.10 43.40 73.90 86.15

* Benefit is only payable when resources fall below these levels.

† Scale rates November 1978 to October 1979. An additional amount was then allowed for housing costs, on average £6.54 a week.

‡ Proposed scale rates July 1986 to March 1987. Help with rent and rates is now given separately under the Housing Benefit Scheme. Supplementary Benefit recipients qualify for 100 per cent. rebates.

║ Householder.

¶ One child aged 5 to 10, One child 11 to 12.

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(iii) FIS eligibility levels*

1978–79 £ 1986–87 £

Couple with two children† 50.00 111.25

* Benefit is only payable when gross income falls below those levels.

† One child under 11, one child over 11.

	Half	Two-thirds	One	Five	Ten
	(a)	(b)	(a)	(b)	(a)	(b)	(a)	(b)	(a)	(b)
1985–86	19.0	110.8	24.0	111.8	29.0	113.0	44.1	129.8	52.1	164.6
1986–87	18.9	114.8	23.7	116.1	28.5	117.7	44.2	133.8	52.1	169.9
Married with 2 children (borh under 11)
1978–79	2.4	100.0	11.5	100.0	20.9	100.0	48.8	100.0	65.6	100.0
1979–80	1.4	102.8	10.2	103.3	18.9	104.1	40.0	119.1	50.0	147.9
1980–81	4.9	102.4	12.9	103.5	20.8	105.1	41.6	119.7	50.8	150.3
1981–82	7.3	99.5	14.9	100.7	22.5	102.5	43.9	114.6	51.9	146.3
1982–83	6.9	100.6	14.9	101.5	22.8	102.8	43.2	116.8	51.6	148.4
1983–84	5.9	105.6	14.2	106.2	22.4	107.2	42.3	123.2	51.2	155.5
1984–85	5.0	109.8	13.5	110.2	22.0	111.1	42.4	126.6	51.2	159.9
1985–86	5.2	111.7	13.7	112.2	22.1	113.1	42.7	128.5	51.4	162.6
1986–87	5.7	114.9	13.8	115.9	21.9	117.4	42.9	132.4	51.5	167.8
Married with 4 children (two under 11, one 11–15 and one over 16)
1978–79	-11.7	100.0	0.2	100.0	13.3	100.0	46.7	100.0	64.5	100.0
1979–80	-13.3	103.1	-0.8	102.7	11.6	103.6	38.5	117.3	49.3	145.5
1980–81	-8.1	101.7	3.1	102.0	14.3	103.8	40.3	117.7	50.2	147.7
1981–82	-6.2	99.5	4.8	99.8	15.8	101.7	42.5	112.9	51.3	143.9
1982–83	-7.0	101.0	4.5	100.9	15.9	102.3	41.8	115.1	50.9	146.0
1983–84	-8.4	106.1	3.5	105.8	15.3	106.9	40.9	121.4	50.4	153.0
1984–85	-9.3	110.3	2.8	109.8	14.8	110.7	41.0	124.8	50.5	157.4
1985–86	-8.6	111.7	3.3	111.3	15.2	112.4	41.3	126.6	50.7	159.9
1986–87	-7.5	114.4	3.9	114.5	15.2	116.2	41.6	130.3	50.8	164.9

(i) Income tax allowances
	1978–79 £	per week	1986–87 £	per week
Single person	985	18.94	2,335	44.90
Married couple	1,535	29.52	3,655	70.29
Married couple with two children*	1,770	34.04	3,655	70.29
* One child aged under 11, one aged between 11 and 15.

(ii) Supplementary benefit eligibility levels*
	†1978–79	‡1986–87
	Short Term Rate £	Long Term Rate £	Short Term Rate £	Long Term Rate £
Single Person║	15.55	19.90	29.80	37.90
Married couple	25.55	31.55	48.40	60.65
Married couple with two children¶	37.10	43.40	73.90	86.15
* Benefit is only payable when resources fall below these levels.
† Scale rates November 1978 to October 1979. An additional amount was then allowed for housing costs, on average £6.54 a week.
‡ Proposed scale rates July 1986 to March 1987. Help with rent and rates is now given separately under the Housing Benefit Scheme. Supplementary Benefit recipients qualify for 100 per cent. rebates.
║ Householder.
¶ One child aged 5 to 10, One child 11 to 12.

(iii) FIS eligibility levels*
	1978–79 £	1986–87 £
Couple with two children†	50.00	111.25
* Benefit is only payable when gross income falls below those levels.
† One child under 11, one child over 11.