HC Deb 22 November 1976 vol 919 cc898-901W
Mr. Grieve

asked the Chancellor of the Exchequer (1) what income is now necessary to give a married man with two children the equivalent purchasing power after tax of an income in 1974 of £1,000 a year, £2,000 a year, £3,000 a year, £5,000 a year, £7,000 a year and £10,000 a year, respectively, on the basis that (a) the whole income is earned, (b) the whole of the income is from investments and (c) half the income is earned and half is from investments;

(2) what income is now necessary to give a married man with two children the equivalent purchasing power after tax of an income in 1970 of £1,000 a year, £2,000 a year, £3,000 a year, £5, 000 a year, £7,000 a year and £10,000 a year, respectively, on the basis that (a) the whole income is earned, (b) the whole of the income is from investments and (c) half the income is earned and half is from investments;

(3) what income is now necessary to give a married man with two children the equivalent purchasing power after tax of an income in 1939 of £1,000 a year, £2,000 a year, £3,000 a year, £5,000 a year, £7,000 a year and £10,000 a year, respectively, on the basis that (a) the whole income is earned, (b) the whole of the income is from investments and (c) half the income is earned and half from investments;

(4) what income is now necessary to give a married man with two children the equivalent purchasing power after tax of an income in 1964 of £1,000 a year, £2,000 a year, £3,000 a year, £5,000 a year, £7,000 a year and £10,000 a year, respectively, on the basis that (a) the whole income is earned, (b) the whole of the income is from investments and (c) half the income is earned and half from investments;

(5) what income is now necessary to give a married man with two children the equivalent purchasing power after tax of an income in 1951 of £1,000 a year, £2,000 a year, £3,000 a year, £5,000 a year, £7,000 a year and £10,000 a year, respectively, on the basis that (a) the whole income is earned, (b) the whole of the income is from investments and (c) half the income is earned and half from investments.

(6) what income is now necessary to give a married man with two children

INCOME REQUIRED TO GIVE EQUIVALENT PURCHASING POWER AFTER TAX AT OCTOBER 1976
Base year Income in base year (a) Income all earned (b) Income all from investments (c) Income half earned, half from investments
£ £ £ £
1939 … … … … 1,000 13,461 25,256 15,565
2,000 46,010 327,173 76,805
3,000 75,723 579,739 133,399
5,000 126,271 1,009,391 223,853
7,000 167,938 1,363,563 298,415
10,000 220,534 1,810,634 392,535
1945 … … … … 1,000 5,124 5,514 5,202
2,000 10,506 14,543 11,808
3,000 17,065 90,485 24,539
5,000 35,411 264,917 61,261
7,000 50,595 393,997 88,434
10,000 67,420 537,004 118,540
1951 … … … … 1,000 4,541 4,539 4,437
2,000 8,938 9,646 9,103
3,000 13,246 20,268 15,771
5,000 24,266 151,826 61,317
7,000 35,440 246,913 61,314
10,000 47,839 352,398 83,501
1964 … … … … 1,000 3,395 3,377 3,342
2,000 6,582 7,003 6,656
3,000 10,667 12,022 10,987
5,000 25,686 83,929 29,163
7,000 44,606 181,004 62,087
10,000 68,130 295,468 107,733
1970 … … … … 1,000 2,385 2,148 2,246
2,000 4,722 4,728 4,633
3,000 7,094 7,184 7,142
5,000 13,888 13,323 12,944
7,000 23,643 39,006 27,301
10,000 40,323 117,960 60,507
1974 … … … … 1,000 1,507 1,507 1,507
2,000 3,216 3,378 3,318
3,000 4,770 4,990 4,913
5,000 8,057 8,381 8,379
7,000 12,346 14,129 13,204
10,000 19,974 53,156 23,472

The price index used is the average general Index of Retail Prices given in Table 2 of "The Internal Purchasing Power of the Pound" published by the Central Statistical Office. For 1976 the October 1976 index has been used.

It has been assumed that family allowances have been relinquished where it would be to the taxpayer's advantage to do so.

Mr. Forman

asked the Chancellor of the Exchequer whether he will publish estimates of the real after-tax increases in income enjoyed since February 1974 by a married man with two children under 11 years of age on (a) average

the equivalent purchasing power after tax of an income in 1945 of £1,000 a year, £2,000 a year, £3,000 a year, £5,000 a year, £7,000 a year and £10,000 a year, respectively, on the basis that (a) the whole income is earned, (b) the whole of the income is from investments and (c) half the income is earned and half from investments.

Mr. Robert Sheldon,

pursuant to his reply [Official Report, 12th November 1976, Vol. 919, c. 289–90], gave the following information:

earnings, (b) £5,000 per annum in February 1974, (c) £7,500 per annum in February 1974, (d) £10,000 per annum in February 1974 and (e) half average earnings:

Mr. Robert Sheldon,

pursuant to his reply [Official Report, 19th November 1976], gave the following information:

I regret that in the time available it has not been possible to provide the information requested. I will write to the hon. Member.