HC Deb 07 April 1976 vol 909 cc222-4W
Mr. MacGregor

asked the Chancellor of the Exchequer (1) what would be the several net income levels in March 1976, or at the latest available monthly date, to provide the equivalent in real terms to the net income after tax of a married man with two children under 11 years of age with gross incomes, assuming all earned, of £2,000, £4,000, £6,000, £10,000 and £15,000 in 1961–62, 1965–66 and 1970–71; and what gross incomes in March 1976, all earned, would be required to produce these 1976 net income levels;

(2) what gross income would be required now to provide the equivalent gross income in real terms to that obtained in 1961–62, 1965–66 and 1970–71 by someone then earning £2,000, £4,000, £6,000, £10,000 and £15,000 per annum, respectively.

Mr. Robert Sheldon

The figures are as follows:

1970–71 have been taken into account where appropriate. It has been assumed that family allowance is claimed only where it is to the taxpayer's advantage.

The price index used is that given in Table 2 of the publication issued by the Central Statistical Office, "The Internal Purchasing Power of the Pound". The indices relate to calendar years except for 1975–76 where the retail price index for February 1976 has been used.

Mr. MacGregor

asked the Chancellor of the Exchequer what would be the current income limit as at the latest available date for the child allowance on the assumption that it had maintained its real value since the year when it was first increased to £115 per annum.

Mr. Robert Sheldon

On the basis of the increase in the detail price index up to February 1976, £318.

Mr. Bowden

asked the Chancellor of the Exchequer (1) what was the single person and married couple age exemption income limit expressed as a percentage of national average earnings, as defined by the Department of Employment, for each financial year from 1945–46 to 1974–75;

(2) what was the single person and married couple age exemption income limit for each financial year between 1945–46 and 1974–75 expressed in real terms at 1945 prices.

Mr. Robert Sheldon

The age exemption provisions were introduced for 1957–58 by the Finance Act 1957. The figures are as follows:

Age exemption income limit
(a) as a percentage of average earnings* (b) in real terms at 1957–58 prices
Year Single Married Single Married
£ £
1957–58 38.2 61.2 250.0 400.0
1958–59 41.2 66.0 268.1 428.9
1959–60 39.0 62.4 268.1 428.9
1960–61 36.4 58.2 263.4 421.7
1961–62 34.5 55.1 253.4 405.4
1962–63 36.4 58.2 266.4 426.3
1963–64 37.3 59.7 283.9 454.3
1964–65 38.2 61.0 302.3 482.8
1965–66 38.3 61.3 312.7 501.2
1966–67 36.9 59.2 301.5 483.2
1967–68 36.1 57.9 302.8 485.6
1968–69 34.7 55.6 297.1 476.1
1969–70 32.9 52.7 289.4 463.1
1970–71 32.6 50.7 301.6 469.8
1971–72 31.3 48.9 292.8 456.6
1972–73 34.0 49.9 343.9 503.9
1973–74 32.9 47.0 343.8 491.2
1974–75 32.0 46.3 337.4 487.4
* Average earning; have been taken as the annual equivalent of average weekly earnings of

full-time manual males aged 21 and over in manufacturing and certain other industries at October of each year.
† The price index used is the average general index of retail prices for each financial year.

Mr. Bowden

asked the Chancellor of the Exchequer (1) what was the age allowance tax threshold for both a single person and a married couple expressed as a percentage of national average earnings, as defined by the Department of Employment, for each month since April 1975;

(2) what was the age allowance tax threshold for both a single person and a married couple for each month since April 1975 expressed in real terms at April 1975 prices.

Mr. Robert Sheldon

The figures are as follows:

Age allowance as a percentage of average earnings* Age allowance in real terms (April 1975 prices) †
Single Married Single Married
£ £
1975
April 30.0 45.1 950 1,425
May 29.8 44.6 912 1,368
June 29.3 43.9 895 1,342
July 28.0 42.0 886 1,328
August 27.6 41.5 880 1,321
September 27.2 40.8 873 1,309
October 27.0 40.5 861 1,291
November 26.6 39.9 851 1,276
December 1976 26.0 39.0 840 1,260
January 26.1 39.1 829 1,244
February 819 1,228
* Average earnings are the estimated annual average earnings of full-time adult males—manual and non-manual—in ill industries, obtained by applying the monthly index of average earnings to the New Earnings Survey estimate of average earnings for April 1975. Figures for February 1976 are not yet available.
† The price index used is the General Index of Retail Prices—all items