§ Mr. Ralph Howellasked the Secretary of State for Social Services (1) what is the net annual spending power—after taking into account income tax, national insurance contributions, &c.—of a man with a wife and three children earning a gross annual salary of £30,000; and what percentage increase in his gross salary would be necessary today in order to raise this net annual spending power by 20 per cent.;
(2) what is the net annual spending power—after taking into account income tax, national insurance contributions, &c.—of a man with a wife and three children earning a gross annual salary of £25,000; and what percentage increase in his gross 124W salary would be necessary today in order to raise this net annual spending power by 20 per cent.;
(3) what is the net annual spending power—after taking into account income tax, national insurance contributions, &c.—of a man with a wife and three children earning a gross annual salary of £20,000 and what percentage increase in his gross salary would be necessary today in order to raise this net annual spending power by 20 per cent.;
(4) what is the net annual spending power—after taking into account income tax, national insurance contributions, &c.—of a man with a wife and three children earning a gross annual salary of £10,000; and what percentage increase in his gross salary would be necessary today in order to raise this net annual spending power by 20 per cent.
§ Mr. Robert SheldonI have been asked to reply.
Assuming that the children are under 11, that the men are contracted out of the graduated pension scheme, and that 1974–75 tax rates and allowances apply both before and after an increase in salary, the figures are as follows:
Gross Salary Net salary* Percentage increase in gross salary required to increase net salary by 20 per cent. £ p.a. £ p.a. 10,000 7,772 32.9 20,000 11,717 52.8 25,000 12,928 50.7 30,000 13,947 45.6 * Net salary is gross salary less tax and national insurance contributions.