§ 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
Assuming that all the children were under the age of 11, the effect on income after tax would be as follows:—
Income after tax Where children are under 5, so that £6 payment ‡ is made Where children are 5 and over but not over 11, so that the difference between single and married allowances is withdrawn Gross Weekly Earnings* With 1976–77 Allowances† Not taxed Taxed £ £ £ £ £ 1. Family with one child not over 11: (i) ¾ average earnings … … 53.80 44.29 47.94 45.84 41.94 (ii) Average earnings … … 71.70 55.93 59.57 57.47 53.57 (iii) 2 x average earnings … … 143.40 100.95 103.92 101.00 97.92 (iv) 5 x average earnings … … 358.50 176.91 177.86 173.36 171.86 2. Family with two children not over 11: (i) ¾ average earnings … … 53.80 46.94 50.58 48.48 44.58 (ii) Average earnings … … 71.70 58.57 62.22 60.12 56.22 (iii) 2 x average earnings … … 143.40 103.92 106.89 104.13 100.89 (iv) 5 x average earnings … … 358.50 181.24 182.19 177.69 176.19 3. Family with four children not over 11: (i) ¾ average earnings … … 53.80 52.22 55.87 53.77 49.87 (ii) Average earnings … … 71.70 63.86 67.50 65.40 61.50 (iii) 2 x average earnings … … 143.40 109.87 112.84 110.14 106.84 (iv) 5 x average earnings … … 358.50 189.89 190.84 186.34 184.84 Notes:
* Average earnings of full-time adult males in March 1976. 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.
† Takes account of conditional and unconditional increases in tax allowances and thresholds.
‡ This assumes a payment of £6 per week to each mother with children under 5 years of age, regardless of the number of children.