HC Deb 08 April 1974 vol 872 c67W
Mr. Grieve

asked the Chancellor of the Exchequer (1) what income is now necessary to give a married man with two children the equivalent purchasing power after tax of an income in 1970 of £1,000 a year, £2,000 a year, £3,000 a year, £5,000 a year, £7,000 a year and £10,000 a year, respectively, on the basis (a) that the whole income is earned, (b) that the whole of the income is from investments, and (c) that half the income is earned and half from investments;

(2) what income is now necessary to give a married man with two children the equivalent purchasing power after tax of an income in 1960 of £1,000 a year, £2,000 a year, £3,000 a year, £5,000 a year, £7,000 a year and £10,000 a year, respectively, on the basis (a) that the whole income is earned, (b) that the whole of the income is from investments, and (c) that half the income is earned and half from investments;

REQUIRED CORRECT INCOME
Base year Income in base year Income all earned Income all investment Income half earned half investment
£ £ £ £
1939 … … 1,000 6,890 7,993 7,121
2,000 17,055 83,386 21,820
3,000 33,078 240,774 57,088
5,000 64,577 508,515 113,454
7,000 90,577 729,221 159,979
10,000 123,319 1,007,817 218,570
1945 … … 1,000 2,978 3,119 2,917
2,000 5,693 6,520 5,941
3,000 8,095 10,631 9,101
5,000 13,333 43,133 16,676
7,000 18,720 123,261 28,685
10,000 27,652 212,051 47,378
1960 … … 1,000 2,190 2,104 2,068
2,000 4,335 4,521 4,248
3,000 6,281 6,784 6,292
5,000 10,370 12,706 11,019
7,000 14,522 26,537 16,813
10,000 21,066 106,308 30,755
1970 … … 1,000 1,334 1,214 1,257
2,000 2,745 2,661 2,599
3,000 4,156 4,057 3,955
5,000 6,930 6,277 6,320
7,000 8,771 8,463 9,583
10,000 15,020 12,098 16,550
Note: The price index used is given in Table 2 of "The Internal Purchasing Power of the Pound "published by the Press and Information Service of the Central Statistical Office in December 1973. This has been updated to February 1974 using the Retail Price Index. Estimates have been made for 1939 and 1945 using the Cost of Living Index published in "British Labour-Statistics-Historical abstract 1886–1968", Department of Employment.