HC Deb 02 December 1976 vol 921 cc232-3W
Mr. Ralph Howell

asked the Chancellor of the Exchequer if he will publish a table comparing for a family with two children under 11 years of age, in 1976–77 and 1977–78 the total net weekly value of child support from (a) family allowance net of tax/children benefit and (b) child tax allowances, after clawback where applicable, assuming firstly earnings below the tax threshold and thereafter at each marginal rate of income tax

1976–77 1977–78
Marginal rate of income tax Value of child allowances of tax Value of child allowances net of clawback where applicable Total child support Value of child benefit Value of child allowances Total child support
per cent. £ £ £ £ £ £
Nil … … 1.50 — 1.50 2.50 — 2.50
35 … … 0.97 3.69 4.66 2.50 2.46 4.96
40 … … 0.90 4.22 5.12 2.50 2.82 5.32
45 … … 0.83 4.74 5.57 2.50 3.17 5.67
50 … … 0.75 5.27 6.02 2.50 3.52 6.02
55 … … 0.67 5.80 6.47 2.50 3.87 6.37
60(1) … … 0.60 6.32 6.92 2.50 4.22 6.72
60(2) … … — 6.92 6.92
65 … … — 7.50 7.50 2.50 4.57 7.07
70 … … — 8.08 8.08 2.50 4.93 7.43
75 … … — 8.65 8.65 2.50 5.28 7.78
83 … … — 9.58 9.58 2.50 5.48 8.34
(1) Assumes, for 1976–77, that family allowance is claimed
(2) Assumes, for 1976–77 that entitlement to family allowance is renounced.
(3) The 1977–78 figures are based on the proposed child benefit rates and child tax allowances given in the statement made on 16th November 1976 in answer to a question by the hon. Member for Leicester South (Mr. Marshall). (Official Report, 16th November 1976, Vol. 919, Cols. 501–506 Written Answers). It has been assumed that the total amount of child tax allowance is set against income tabale at the marginal rate in column 1 although in practice part of the allowance may be valued at a different marginal rate.
(4) The family is assumed not to have been in receipt of child interim benefit in 1976–77.