§ Mr. Rookerasked the Chancellor of the Exchequer what would be the current value of the personal allowances of single and married persons, respectively, if they were equated with the current levels of supplementary benefits requirements assuming no special additions and applying the national average for the rent and rates element; and what would be the cost to the revenue of raising personal allowances to these levels, as compared with the proposed rates in the Finance Bill 1977 (a) as presented, and (b) as amended in Standing Committee.
§ Mr. Robert Sheldon,pursuant to his reply [Official Report, 13th July 1977; Vol. 935, c. 168–9], gave the following information
Taking the total of supplementary benefits in 1977–78 at the ordinary scale rates as they will apply during the year, together with average additions for rent and rates, the single and married personal allowances would need to be raised to £1,040 and £1,475, respectively. The costs of raising personal allowances to these levels in 1977–78, are estimated to be £2,030 million under (a) and £1,600 million under (b), assuming in both cases the basic rate of 35 per cent. in the Finance Bill. These costs include the cost of raising the wife's earned income allowance to £1,040 in line with the single personal allowance, but do not assume any change in age allowances. The comparisons between personal allowances and supplementary benefits are for families without children.