§ Ms HewittTo ask the Chancellor of the Exchequer what proportion of income is paid in income tax and national insurance contributions, allowing for child benefit, in the tax year 1997–98 by(a) a single person with no children and (b) a sole earner in a married two-parent, two child family on earnings of (i) half of average earnings, (ii) three quarters of average earnings, (iii) average earnings and (iv) twice average earnings. [23928]
§ Dawn PrimaroloEstimates for 1997–98 are given in the table.
Income tax and NIC as a percentage of earnings in 1997–981 Multiple of average earnings2 0.5 0.75 1 2 Single person with no children 20.9 24.9 26.9 30.7 Married sole earner with two children under 113 8.7 16.8 20.8 27.7 1 National Insurance contributions are at standard class 1 rate for employees not contracted out of SERPs. 2 Full time males on adult rates, all occupations. 3 Net of child benefit.
§ Ms HewittTo ask the Chancellor of the Exchequer at what proportion of average male earnings(a) a sole earner in a married two-parent, two-child family and (b) a single person with no children start paying income tax in 1997–98; and how this compares with the position in (i) 1978–79 and (ii) 1967–68, allowing for family allowances/child benefit. [23927]
§ Dawn PrimaroloEstimates are given in the table. A single person with no children has a tax threshold equal to the personal allowance. For a married person with two children—assumed to be both aged under 11—the `break-even' point is considered. This is the value of 645W earnings at which the income tax paid is equal to the money received through child benefit or family allowances.
Percentage of average earnings1 1967–68 1978–79 1997–98 Married one earner with two children under 112 69.7 56.5 47.7 Single person with no children 23.4 20.4 18.7 1 Full time male on adult rates, all occupations. 2 Assuming the full married couple's allowance is received.
Current levels 1978–79 1990–91 1997–98 Change 1978–79 to 1990–91 Change 1990–91 to 1997–98 Personal allowance 985 3,005 4.045 2,020 1,040 Married couple's allowance 550 1,720 11,830 1,170 110 Additional personal allowance 550 1,720 11,830 1,170 110 Child tax allowance (under 11 s) (for each child) 100 — — -100 —
Revalorised to 1997–98 levels 1978–79 Revalorised to 1997–98 levels 1990–91 Revalorised to 1997–98 levels 1997–98 Change 1978–79 to 1990–91 Change 1990–91 to 1997–98 Personal allowance 3,175 3,895 4,045 720 150 Married couple's allowance 1,770 2,230 11,830 460 -400 Additional personal allowance 1,770 2,230 11,830 460 -400 Child tax allowance 325 — — -325 —
Change for the different families Change 1978–79 to 1990–91 Change 1990–91 to 1997–98 Revalorised change 1978–79 to 1990–91 Revalorised change 1990–91 to 1997–98 Single person no children 2,020 1,040 720 150 Lone parent two children 2,990 11,150 530 1-250 Married couple one earner two children 2,990 11,150 530 1-250 Married couple two earners two children 5,010 12,190 1,250 1-100 Unmarried couple two earners two children 5,010 12,190 1,250 1-100 1 Married couples/additional personal allowance is restricted to 15 per cent. in 1997–98.