§ Mr. Ralph Howell
To ask the Chancellor of the Exchequer what has been the growth of real take-home pay for a married man with two children who is on half male average earnings since 1978–79 each year to the latest date available.
§ Mr. Maude
The figures are given in the table.
Growth in real take home pay for married man with two children on half male average earnings: 1978–79 to: Per cent. 1979–80 2.8 1980–81 2.5 1981–82 -0.6 1982–83 0.6 1983–84 5.6 1984–85 9.8
1978–79 to: Per cent. 1985–86 11.2 1986–87 15.2 1987–88 19.8 1988–89 23.1 1989–90 24.4 1990–91 24.5 1991–92 29.3
Notes to table:
(1) Real take home pay is taken to include child benefit to allow comparability with 1978–79 when support for families with children was given partly through child tax allowances.
(2) Income tax payments are calculated on the assumption that no tax reliefs are received other than the standard allowances and that earnings are the only source of income. NI contributions are calculated at the class I contracted-in rate.
(3) Where determinants of take home pay such as NICs or child benefit have varied during the course of a year, the average value for the financial year has been used.
(4) Average male earnings are the average gross weekly earnings of all full-time males on adult rates with pay unaffected by absence. These are assumed to be £307.90 a week in 1990–91 and £334.10 a week in 1991–92 using the Government Actuary Department's assumptions of 10 per cent. growth for 1990–91 over 1989–90 and 8½ per cent. for 1991–92 over 1990–91 as published in the 1990 autumn statement.
(5) Real changes are calculated using the average level of the Retail Prices Index in each financial year.