§ Mrs. Chalkerasked the Chancellor of the Exchequer if he will publish in the Official Report the net income effects of withdrawing the married man's tax allowance from all men with wives under 55 years of age and paying it as a cash home responsibility payment to mothers of children under five years of age for (1) families with one, two and four children under five years of age and (2) families with one, two and four children over five years of age earning three-quarters of the average wage, the average wage, twice the average wage and five times the average wage.
497W
§ Mr. Robert Sheldon,pursuant to his reply [Official Report, 15th January; Vol. 903, cc. 221–2], gave the following
INCOME AFTER TAX Where children are under 5, so that £5 payment (2) is made Where children are 5 and over but not over 11, so that the difference between single and married allowances is withdrawn Gross weekly earnings (1) With 1975–76 allowances Not taxed Taxed £ £ £ £ £ 1. Family with one child not over 11: i. ¾ average earnings … … 45.51 37.62 40.74 38.99 35.74 ii. Average earnings … … 60.68 47.49 50.60 48.85 45.60 iii. 2 x average earnings … … 121.36 86.22 88.80 86.55 83.80 iv. 5 x average earnings … … 303.40 157.59 158.82 155.20 153.82 2. Family with two children not over 11: i. ¾ average earnings … … 45.51 39.87 42.98 41.23 37.98 ii. Average earnings … … 60.68 49.73 52.84 51.09 47.84 iii. 2 x average earnings … … 121.36 88.68 91.25 89.00 86.25 iv. 5 x average earnings … … 303.40 160.82 162.05 158.55 157.05 3. Family with four children not over 11: i. ¾ average earnings … … 45.51 44.35 47.46 45.71 42.46 ii. Average earnings … … 60.68 54.21 57.32 55.57 52.32 iii. 2 x average earnings … 121.36 93.37 96.16 93.91 91.16 iv. 5 x average earnings … 303.40 167.28 168.51 165.01 163.51 Notes:— 1. An estimate of the average earnings in October 1975 of full-time manual men aged 21 and over in manufacturing and certain other industries was obtained by applying the monthly index of average earnings to the average figure of £48.63 for October 1974. Gross weekly earnings shown do not include family allowances, but the tax on family allowance, and clawback, have been taken into account in the calculations. 2. This assumes a payment of £5 per week to each mother with children under 5 years of age—regardless of the number of children consistent with the answer given on 18th December 1975—. [Vol. 902, Columns 712–713