Family Allowances (Hansard, 13 June 1977)

§ Mrs. Chalker
asked 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 5 years for (a) families

INCOME AFTER TAX

Gross Weekly Earnings^✶ With 1977–78 Allowances† Where children are Under 5 years old £payment‡ made Where children are over 5 but not over 11 No payment made but difference between single and married allowances withdrawn

Not Taxed Taxed

£ £ £ £ £

1.Family with one child not over 11—

(i) ¾ average earnings … 59.93 50.17 54.50 52.19 47.50

(ii) Average earnings … 79.90 63.55 67.89 65.58 60.89

(iii) 2Xaverage earnings … 159.80 115.89 119.36 116.21 112.36

(iv) 5X average earnings … 399.50 202.52 203.47 198.22 196.47

2.Family with two children not over 11—

(i) ¾ average earnings … 59.93 52.75 57.08 54.77 50.08

(ii) Average earnings … 79.90 66.13 70.46 68.15 63.46

(iii) 2Xaverage earnings … 159.80 118.70 122.33 119.18 115.33

(iv) 5Xaverage earnings … 399.50 206.48 207.42 202.17 200.42

3.Family with four children not over 11—

(i) ¾ average earnings … 59.93 57.90 62.24 59.93 55.24

(ii) Average earnings … 79.90 71.29 75.62 73.31 68.62

(iii) 2Xaverage earnings … 159.80 124.31 128.08 125.12 121.08

(iv) 5Xaverage earnings … 399.50 214.38 215.32 210.07 208.32

^* New Earnings Survey estimates of average earnings of full-time adult males in April 1976, updated to March 1977 by the index of average earnings. Gross earnings exclude child benefits, although these are included in net income figures.

• Assuming implementation of all Budget proposals.

‡ This assumes a payment of £7 per week to each mother with children under 5 years of age, regardless of the number of children.

§ Mrs. Wise
asked the Chancellor of the Exchequer what is his estimate of the revenue cost of a new tax allowance, entitled parental allowance, given to the mother if she is a taxpayer, the father if she is not, introduced at a level of £156 per family.

§ Mr. Robert Sheldon,
pursuant to his reply [Official Report, 23rd May 1977; Vol. 932, c. 345], gave the following information:
At 1977–78 income levels and assuming full implementation of all the Budget proposals, the cost would be about £335 million.

INCOME AFTER TAX
			Gross Weekly Earnings^✶	With 1977–78 Allowances†	Where children are Under 5 years old £payment‡ made	Where children are over 5 but not over 11 No payment made but difference between single and married allowances withdrawn
					Not Taxed	Taxed
			£	£	£	£	£
1.Family with one child not over 11—
(i)	¾ average earnings	…	59.93	50.17	54.50	52.19	47.50
(ii)	Average earnings	…	79.90	63.55	67.89	65.58	60.89
(iii)	2Xaverage earnings	…	159.80	115.89	119.36	116.21	112.36
(iv)	5X average earnings	…	399.50	202.52	203.47	198.22	196.47
2.Family with two children not over 11—
(i)	¾ average earnings	…	59.93	52.75	57.08	54.77	50.08
(ii)	Average earnings	…	79.90	66.13	70.46	68.15	63.46
(iii)	2Xaverage earnings	…	159.80	118.70	122.33	119.18	115.33
(iv)	5Xaverage earnings	…	399.50	206.48	207.42	202.17	200.42
3.Family with four children not over 11—
(i)	¾ average earnings	…	59.93	57.90	62.24	59.93	55.24
(ii)	Average earnings	…	79.90	71.29	75.62	73.31	68.62
(iii)	2Xaverage earnings	…	159.80	124.31	128.08	125.12	121.08
(iv)	5Xaverage earnings	…	399.50	214.38	215.32	210.07	208.32
^* New Earnings Survey estimates of average earnings of full-time adult males in April 1976, updated to March 1977 by the index of average earnings. Gross earnings exclude child benefits, although these are included in net income figures.
• Assuming implementation of all Budget proposals.
‡ This assumes a payment of £7 per week to each mother with children under 5 years of age, regardless of the number of children.