§ Mr. DuncanTo ask the Chancellor of the Exchequer what are the latest estimates of the personal allowance as a percentage of average manual earnings in(a) 1992–93, (b) 1993–94, (c) 1994–95 and (d) 1995–96 for taxpayers who were (i) a single person, (ii) a married man with no children, (iii) a married man with two children and (iv) a married man with four children.
§ Sir George YoungUsing the illustrative assumptions for the growth in earnings and prices given in the "Financial Statement and Budget Report" 1995–96, real take-home pay for a married man on average earnings for all occupations will rise by £3.50 a week between 1992–93 and 1995–96 and for a single man by £7.50 a week.
Estimates of the income tax threshold as a percentage of average male manual earnings based on illustrative assumptions for earnings growth in 1994–95 and 1995–96 are in the table. A married person's tax threshold is unaffected by the number of children.
Since the introduction of the lower rate band in 1992–93 taxpayers with income just above the threshold pay tax at a rate of only 20 per cent.
493W
Tax threshold Tax threshold as a percentage of average male manual earnings Single person £ Married man1 £ Single person Married man1 1992–93 3445 5165 24.4 36.5 1993–94 3445 5165 23.8 35.7 1994–95 3445 5165 223.0 234.5 1995–96 3525 4815 222.5 230.7 1 Assumes that the married man receives a full married couple's allowance. 2 Provisional. Assumes average male manual earnings increase by 3.5 per cent in 1994–95 and 4.5 per cent in 1995–96 in line with the assumptions for growth in average earnings given in the financial statement and budget Report 1995–96.