HC Deb 31 May 1968 vol 765 cc306-7W
Mr. Richard Wainwright

asked the Chancellor of the Exchequer at what annual total of earnings there begins to be a decrease in net income 1968–69 over 1967–68 resulting from increased family allowances and reduced income tax allowances for children, in respect of married men with no unearned income and with only child and personal allowances, with six children, eight children, and 10 children, respectivey, assuming the children rank for family allowances.

Mr. Harold Lever

In the cases mentioned by the hon. Member the level of earnings depends on the age of the children. Assuming in each case that half the children are under 11 and half are over 11 but under 16, the levels of earnings at which there is a decrease in 1968-69 net income compared with 1967-68 are £1,534, £1,708 and £1,907 for six, eight and ten children respectively. This decrease in net income at these levels is due to the fact that an increase of 5s. a week in family allowances for fourth and subsequent children was paid from 24th October, 1967, in advance of the all-round 7s. increase which became payable in April, 1968, but there was no offsetting reduction in income tax allowances in 1967–68.