HC Deb 08 May 1989 vol 152 cc309-10W
Mr. Squire

To ask the Secretary of State for Social Security if he will publish a table showing the numbers of lower-paid families with and without children whose marginal tax rates including benefit withdrawal will be(a) 90 to 100 per cent., (b) 80 to 90 per cent., (c) 70 to 80 per cent., (d) 60 to 70 per cent., (e) 50 to 60 per cent. and (f) 40 to 50 per cent., taking into account the tax changes for 1989–90.

Mr. Peter Lloyd

The latest available information requested is as follows:

Combined marginal income tax and benefit withdrawal rates 1989–90 Working heads of tax units (000) Great Britain numbers facing combined rates of over 40 per cent.—in bands
Families with children Couples and single people Total
100 per cent. and over — — —
90 per cent. to 99 per cent. 40 5 45
80 per cent. to 89 per cent. 155 10 165
70 per cent. to 79 per cent. 170 35 205
60 per cent. to 69 per cent. 1 5 5
50 per cent. to 59 per cent. 1 5 5
40 per cent. to 49 per cent. 10 25 35

Notes:

(i) Marginal deduction rates shown are for heads of tax units in receipt of Family Credit/Housing benefit where at least one partner works 24 hours or more a week.

(ii) All estimates are for 1989–90 and are based on combined 1985 and 1986 Family Expenditure Survey data and are consistent with this year's Government Expenditure White Paper.

(iii)1 denotes an estimate of fewer than 2,500.

(iv) The total number of working heads of tax units with more than 24 weekly remunerative hours is approximately 17 million. Those shown in the table therefore represent under 3 per cent. of the total.