§ Mr. Adleyasked the Chancellor of the Exchequer, taking into account increases in taxation, and increases in the cost of living, by how much the salary of a married man with two children under 12 years of age earning £4,500 in 1972 would need to rise to ensure that his real net income in June 1975 equalled his real net income in January 1972.
§ Mr. Robert SheldonAssuming that the children are both under 11, the annual income after tax at 1971–72 rates and allowances for a gross earned income of £4,500 was £3,445. To maintain the value in real terms between January 1972 and May 1975, the latest month for which the general index of retail prices is available, would require an increase in salary before tax of about £3,670 per annum—i.e., to £8,170 per annum, at the rates of tax proposed for 1975–76. The figures take into account family allowances and clawback.