§ Mr. SquireTo ask the Chancellor of the Exchequer if he will publish a table which sets out, for a two-child family on(a) half, (b) three quarters, (c) full, (d) one and a half times, (e) twice, (f) five times and (g) ten times average earnings, the increase in net income to be derived from (i) a one pence cut in the standard rate of income tax in the 1991–92 financial year, (ii) an increase in personal allowances, over the above indexation, which incurred the same cost as a one pence cut in the standard rate income tax, (iii) an increase in child benefit which incurred the same cost as a one pence cut in standard rate income tax, both assuming and not assuming similar increases in the income support and family credit children's rates separately and (iv) the introduction of reduced rate tax bands of (1) 20 per cent. and (2) 15 per cent. at the same 673W cost as a one pence cut in standard rate income tax, showing what band of income the reduced rate would cover.
§ Mr. MaudeThe effects of the various changes to income tax and child benefit on a married man with two
Increase in income after tax1 (£ per week) compared with indexation in 1991–92 for a married man2 with two children Mulitiple of average earnings3 ½ ¾ 1 1½ 2 5 10 (i)Increase derived from 1p cut in basic rate 0.67 1.50 2.34 4.01 4.41 4.41 4.41 (ii) Increase in main income tax allowances 1.68 1.68 1.68 1.68 2.70 2.70 2.70 (iii) Increase in child benefit (a) £4.30 per week per child4 2.26 8.60 8.60 8.60 8.60 8.60 8.60 (b) £3.07 per week per child5 6.14 6.14 6.14 6.14 6.14 6.14 6.14 (iv) Reduced rate band of 20 per cent, on first £1,600 of taxable income 1.54 1.54 1.54 1.54 1.54 1.54 1.54 (v) Reduced rate band of 15 per cent, on first £750 of taxable income 1.44 1.44 1.44 1.44 1.44 1.44 1.44 Notes: 1 Disregarding any change to entitlement to social security income-related benefits except in item (iii)(b). 2 Assumed to have no reliefs and allowances other than the personal allowance and the married couple's allowance. 3 Average earnings assumed to be £334.1 per week. 4 Assuming no change in income support and family credit children's rates. 5 Assuming corresponding changes in income support and family credit children's rates.