Personal Incomes (Hansard, 5 May 1975)

§ Mr. Knox
asked the Chancellor of the Exchequer, following his recent Budget, what gross income would require to be earned in (a) one year's time, (b) two years' time, (c) three years' time, (d) four years' time, (e) five years' time. (f) 10 years' time and (g) 20 years' time by (a) a single male, (b) a married man with no children, (c) a married man with one child, (d) a married man with two children and (e) a married man with three children in order to maintain in real terms the net value after tax of his present annual earnings before tax of(a) £1,500, (b) £2,000, (c) £3,000,(d) £4,000 and (e) £5,000 on the assumption that inflation runs at an annual rate of 20 per cent. and the present rates of tax continue.

§ Mr. Robert Sheldon
The figures are as follows:
337W
For the purposes of the illustrative calculations it has been assumed that all children are under 11 throughout; that the 1975–76 rates of tax and personal allowances remain in force; that family allowances and clawback remain as in 1975–76; and that family allowance is only claimed where it is to the taxpayer's advantage.

§ Mr. Knox
asked the Chancellor of the Exchequer what increase in gross income would have been required by (a) a single male, (b) a married man with no children, (c) a married man with one child. (d) a married man with two children and (e) a married man with three children to maintain in real terms the net value of his annual earnings before tax of (a) £1,500, (b) £2,000, (c) £3,000, (d) £4,000 and (e) £5,000 in March 1974.

§ Mr. Robert Sheldon
Assuming that the children are under 11 the figures are as follows:

1974–75 1975–76

Gross Earnings Earnings after tax Increase in (a) required to maintain (b) at March 1974 prices^*

£ £ £

(a) (b) (c)

Single man

1,500 1,211 395

2,000 1,546 520

3,000 2,216 769

4,000 2,886 1,018

5,000 3,556 1,420

Married man (no children)

1,500 1,290 390

2,000 1,625 515

3,000 2,295 766

4,000 2,965 1,015

5,000 3,635 1,366

Married man (one child)

1,500 1,370 410

2,000 1,705 535

3,000 2,375 784

4,000 3,045 1,035

5,000 3,715 1,345

Married man (two children)

1,500 1,416 437

2,000 1,751 562

3,000 2,421 811

4,000 3,091 1,060

5,000 3,761 1,356

Married man (three children)

1,500 1,461 463

2,000 1,796 587

338W

3,000 2,466 837

4,000 3,136 1,086

5,000 3,806 1,370

^* The calculation take account of the increase in the General Index of Retail Prices between 19th March 1974 and 18th March 1975, the latest date for which the index is available. 1974–75 tax rates have been assumed in columns (a) and (b) and 1975–76 rates for column (c).

1974–75	1975–76
Gross Earnings	Earnings after tax	Increase in (a) required to maintain (b) at March 1974 prices^*
£	£	£
(a)	(b)	(c)
Single man
1,500	1,211	395
2,000	1,546	520
3,000	2,216	769
4,000	2,886	1,018
5,000	3,556	1,420
Married man (no children)
1,500	1,290	390
2,000	1,625	515
3,000	2,295	766
4,000	2,965	1,015
5,000	3,635	1,366
Married man (one child)
1,500	1,370	410
2,000	1,705	535
3,000	2,375	784
4,000	3,045	1,035
5,000	3,715	1,345
Married man (two children)
1,500	1,416	437
2,000	1,751	562
3,000	2,421	811
4,000	3,091	1,060
5,000	3,761	1,356
Married man (three children)
1,500	1,461	463
2,000	1,796	587

3,000	2,466	837
4,000	3,136	1,086
5,000	3,806	1,370
^* The calculation take account of the increase in the General Index of Retail Prices between 19th March 1974 and 18th March 1975, the latest date for which the index is available. 1974–75 tax rates have been assumed in columns (a) and (b) and 1975–76 rates for column (c).