Take-Home Pay (Hansard, 25 October 1973)

§ Mr. Adam Butler
asked the Chancellor of the Exchequer what would be the calculated take-home pay, in each year, of a married man with two children at school assuming only deduction of income tax 565W and national insurance contributions, and assuming no other income, if his gross pay was: £5,000 per annum in the year 1972–73, £5,250 per annum in the year 1973–74, and £5,600 per annum in the year 1974–75, respectively, assuming no income tax changes in this last year.

§ Mr. Nott
Assuming that both children are under 11, that the man is contracted out of the graduated pension scheme, and that national insurance contributions in 1974–75 are paid at the rates in force from October 1974, the figures are:

Income Take-home pay

£ £p

1972–73 5,000 3,667.60

1973–74 5,250 3,856.77

1974–75 5,600 4,093.50

The figures for take-home pay do not include family allowances (£46.80 for each year) but the tax on the family allowance and the family allowance deduction ("clawback") have been taken into account.

§ Mr. Adam Butler
asked the Chancellor of the Exchequer what would be the total income, after tax and deduction of national insurance contributions, of a married man with two children at school, assuming an investment income of £1,000 per annum in each of the three years, taking his gross earned income at £5,000 per annum in 1972–73, £5,250 per annum in 1973–74 and £5,600 in 1974–75,

Annual take-home pay

Annual Income 1969–70 1970–71 1971–72 1972–73 1973–74

£ £ £ £ £

Average Earnings … 1,050.78 1,1590.3 1,300.95 1,513.98 1,629.45^*

£2,000 … … … 1,527.89 1,524.09 1,561.30 1,602.31 1,599.42

£5,000 … … … 3,531.24 3,527.68 3,639.39 3,667.60 3,681.77

£8,000 … … … 5,063.25 5,064.20 5,341.15 5,369.36 5,590.66

^* Estimate for August 1973.

Notes:

It has been assumed that the men with average earnings and with £2,000 per year are not contracted out of the graduated pension scheme, and that the men with £5,000 and with £8,000 are contracted out.

The figures of take-home pay do not include family allowances (£46.80 for all years), but the tax on the family allowance and the family allowance deduction ("clawback") have been taken into account.

It has been assumed that in 1973–74 a man with an income of £8,000 would not take up his family allowances.

	Income	Take-home pay
	£	£p
1972–73	5,000	3,667.60
1973–74	5,250	3,856.77
1974–75	5,600	4,093.50

	Annual take-home pay
Annual Income	1969–70	1970–71	1971–72	1972–73	1973–74
	£	£	£	£	£
Average Earnings	…	1,050.78	1,1590.3	1,300.95	1,513.98	1,629.45^*
£2,000	…	…	…	1,527.89	1,524.09	1,561.30	1,602.31	1,599.42
£5,000	…	…	…	3,531.24	3,527.68	3,639.39	3,667.60	3,681.77
£8,000	…	…	…	5,063.25	5,064.20	5,341.15	5,369.36	5,590.66
^* Estimate for August 1973.
Notes:
It has been assumed that the men with average earnings and with £2,000 per year are not contracted out of the graduated pension scheme, and that the men with £5,000 and with £8,000 are contracted out.
The figures of take-home pay do not include family allowances (£46.80 for all years), but the tax on the family allowance and the family allowance deduction ("clawback") have been taken into account.
It has been assumed that in 1973–74 a man with an income of £8,000 would not take up his family allowances.