§ Earl Russell
asked Her Majesty's Government:
How many people on Family Credit are subject to marginal deduction rates of above 70 per cent.
§ The Minister of State, Department of Social Security (Lord Mackay of Ardbrecknish)
Through a combination of the 70 per cent. taper in Family Credit and deductions for tax and National Insurance contributions, about 450,000 families may be subject to marginal deduction rates of above 70 per cent.
Note 1 Estimated using data from the 1990/91/92 Family Expenditure Surveys and the 1993 Housing Benefit Management Information and Family Credit Management Information System modelled at 1994/95 prices and benefit levels.