§ Mr. Meacherasked the Chancellor of the Exchequer if he will estimate the effect of introducing tax credits on households with the same breakdown as that given on page 32 of the Green Paper, but assuming that the tax credit system has the same total cost as the system it replaces, on the basis that the levels of 11W credit are reduced by an aggregate £1,300 million whilst maintaining their relative values.
Weekly pay Present net income of family Pay after tax and credits £ £p £p Single … 10 10.00 10.30 15 13.93 13.80 20 17.43 17.30 25 20.93 20.80 30 24.43 24.30 35 27.93 27.80 50 38.43 38.30 100 73.43 73.30 Married without children … 10 10.00 11.90 15 14.97 15.40 20 18.47 18.90 25 21.97 22.40 30 25.47 25.90 35 28.97 29.40 50 39.47 39.90 100 74.47 74.90 Married with two children under 11 … 10 15.90 15.20 15 19.00 18.70 20 21.50 22.20 25 24.56 25.70 30 28.06 29.20 35 31.56 32.70 50 42.06 43.20 100 77.06 78.20 Married with four children— two under 11 and two between 11–16 … 10 17.90 18.50 15 22.00 22.00 20 24.50 25.50 25 27.90 29.00 30 31.48 32.50 35 34.98 36.00 50 45.48 46.50 100 80.48 81.50
NOTES: 1. The levels of credit used are: Single … £3.30 Married … £4.90 Child … £1.65. 2. The cut, of about 18 per cent., in each of the credits—plus corresponding cuts in the equivalent tax allowances—reduces the cost of the tax credit system to nil. The aggregate cut in the total credits is, however, more than £1,300 million, because of savings elsewhere.