HC Deb 14 March 1990 vol 169 c269W

Increase in income after tax1 (£ per week) compared with indexation2 in 1990–91 for married man3 with two children.
Multiple of average earnings4
½ ¾ 1 1½ 2 5 10
Increased derived from
(i) 1p cut in basic rate 0.61 1.37 2.13 3.65 4.29 4.29 4.29
(ii) 7.5 per cent increase in main income tax allowances 1.59 1.59 1.59 1.59 2.54 2.54 2.54
(iii) Increase in child benefit
(a) £3.15 per week per child5 6.30 6.30 6.30 6.30 6.30 6.30 6.30
(b) £2.45 per week per child6 4.90 4.90 4.90 4.90 4.90 4.90 4.90
(iv) reduced rate band of 20 per cent, on first £1,450 of taxable income 1.40 1.40 1.40 1.40 1.40 1.40 1.40
(v) reduced rate band of 15 per cent, on first £700 of taxable income 1.35 1.35 1.35 1.35 1.35 1.35 1.35
1 Disregarding any change to entitlement to social security income-related benefits except in item (iii) (b).
2 Calculations based on the standard assumption that 1989–90 allowances and the basis rate limit have been indexed by 7.7 per cent, for 1990–91.
3 Assumed to have no reliefs and allowances other than the personal allowance and the married couple's allowance.
4Average earnings assumed to be £303.8 per week, an increase of 8.5 per cent, on 1989–90 in line with the assumptions used by the Government Actuary for reviewing national insurance contributions (paragraph 3.02 of the Autumn Statement 1989).
5 Assuming no change in income support and family credit children's rates.
6 Assuming corresponding changes in income support and family credit children's rates.

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