§ Mr. Ralph Howellasked the Chancellor of the Exchequer if he will publish a table for each year since 1971 showing the tax-free income for each of a one-, two-, three-and four-child family, including chidren aged between 11 years and 16 years and over 16 years, family income and supplementary beneft entitlement levels, including average housing costs.
§ Mr. Norman LamontThe tables show break-even points measured as a percentage of family income supplement prescribed amounts and supplementary benefits ordinary scale rates — plus average housing costs. Break-even points are the levels of taxable income at which a net liability to tax arises after deducting receipt of child benefit from payment of income tax.
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Weekly break-even points as a percentage of FIS prescribed amounts in April of each year5 1 earner couple with one child1 with two children2 with three children3 with four children4 1971–72 85.1 101.1 117.9 134.5 1972–73 93.4 107.0 122.0 137.1 1973–74 89.3 100.2 112.5 124.6 1974–75 98.8 111.2 124.6 137.6 1975–76 91.9 104.9 117.6 129.8 1976–77 84.6 97.7 110.2 122.0 1977–78 89.0 99.7 110.3 120.5 1978–79 95.2 109.7 121.3 132.2 1979–80 110.1 128.0 143.2 156.2 1980–81 99.1 115.2 129.2 141.3 1981–82 86.1 100.2 111.8 121.6 1982–83 88.2 101.8 113.0 122.4 1983–84 89.7 103.1 114.1 123.2 1984–85 96.8 110.4 121.5 130.7 1985–86 99.4 112.5 123.2 132.1 1986–87 97.1 109.2 118.0 124.3 1987–88 99.1 112.5 122.3 129.3 1 Aged under 11.
2 Two children aged under 11.
3 Two children aged under, one aged 11–15.
4 Two children aged under 11, one aged 11–15, one aged 16.
5For 1971–72, the FIS prescribed amounts relate to the introductory levels of FIS in August 1971.
Weekly break-even points as a percentage of supplementary benefit ordinary scale rates (plus average housing costs) in April of each year. 1 earner couple With one child1 With two children2 With three children3 With four children4 1971–72 120.3 139.0 155.0 163.2 1972–73 133.5 147.2 158.7 161.7 1973–74 122.1 133.7 143.7 145.5 1974–75 119.9 132.3 142.5 144.7 1975–76 95.9 107.8 116.5 118.6 1976–77 97.5 110.0 118.9 120.9 1977–78 110.4 118.5 123.4 122.0 1978–79 118.7 130.8 136.0 133.9 1979–80 132.9 147.5 154.8 152.4 1980–81 120.7 133.4 140.1 138.0 1981–82 102.0 116.1 121.2 121.8 1982–83 105.2 119.3 124.3 124.7 1983–84 109.0 123.0 127.6 127.7 1984–85 114.0 128.2 133.0 133.1 1985.865 116.8 130.5 134.8 134.5 1986–875 117.7 131.5 135.8 135.5 1987–885 119.9 135.3 140.5 140.9 1 Aged under 11. 2 Two children aged under 11. 3 Two children aged under 11, one aged 11–15. 4 Two children aged under 11, one aged 11–15, one aged 16 5 Provisional.
§ Mr. Austin Mitchellasked the Chancellor of the Exchequer whether he will publish in the Official Report a table showing for (a) two-earner families with a wife's earnings election and (b) other higher-rate taxpayers by tax category, his estimate of the number and distribution of incomes, together with the average unearned income and average amount of mortgage interest relief in each income band in each category in the next financial year.
§ Mr. Norman Lamont[pursuant to his reply, 25 March 1987, c. 213]: Information is given in the tables. The estimates are based on a projection from the 1984–85 survey of personal incomes and are therefore provisional.
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Distribution of total income, 1987–88 For Higher Rate Tax Payers1 Single people Married couples without wife's earnings Range of total income Lower limit Number of incomes Average amount of investment income2 Average amount of mortgage interest relief2 Number of incomes Average amount of investment income2 Average amount of mortgage interest relief2 £ pa) ('000s) (£) (£) ('000s) (£) (£) 20,000 65 9,100 610 60 5,300 350 25,000 55 9,600 1,160 100 3,400 950 30,000 25 12,300 1,390 50 4,600 1,250 35,000 10 13,000 1,430 35 7,200 1,400 40,000 20 14,700 1,220 45 7,300 1,550 50,000 25 34,700 1,770 55 19,900 1,750
Two-earner married couples Without a wife's earnings election With a wife's earnings election Range of total income Lower limit Number of incomes Average amount of investment income2 Average amount of mortgage interest relief2 Number of incomes Average amount of investment income2 Average amount of mortgage interest relief2 (£pa) ('000s) (£) (£) ('000s) (£) (£) 20,000 55 3,200 300 0 0 0 25,000 225 2,300 750 50 1,450 300 30,000 90 3,700 1,200 110 1,800 800 35,000 40 5,300 1,300 70 3,500 950 40,000 30 6,000 1,500 50 4,100 1,200 50,000 30 14,200 1,800 50 10,600 1,550 1 Includes some 130 thousand tax units that are taken out of higher-rate tax following the wife's earnings election. 2 Average based on those having investment income or mortgage relief as appropriate.