§ Mr. Ovendenasked the Chancellor of the Exchequer what was the net weekly income in 1977–78 after taking account of income tax, child benefit, family income supplement and the value of free school meals, where applicable, for a married couple with three children where the husband is earning £40, £80 and £120 per week, respectively; what are the corresponding figures for a family where the children are resident overseas in a country without reciprocal arrangements for payment of child benefit; and what these figures will be in 1978–79 assuming that no further changes are made to the regulations in respect of allowances for children overseas, tax allowances or benefits other than those already announced.
§ Mr. Robert SheldonI will let my hon. Friend have a reply as soon as possible.
§ Mr. George Gardinerasked the Chancellor of the Exchequer what percentage of income is retained after deduction of tax and social security payments by a married man with two children below the age of 11 years (a) on average earnings, (b) on twice average earnings, and (c) three times average earnings in each Organisation for Economic Co-operation and Development country.
§ Mr. Robert Sheldon, pursuant to his reply [Official Report, 6th April 1978], gave the following information:
Figures of average earnings in OECD countries are not available, but figures are published for most OECD countries for the average earnings of production workers in industry. The latest year for which this information is available is 1974.
It would involve a disproportionate cost to carry out such calculations for all 24 OECD countries. I hope the hon. 255W Member will find it sufficient to have information for the EEC countries, USA,
PERCENTAGE OF INCOME RETAINED AFTER DEDUCTION OF TAX AND SOCIAL SECURITY PAYMENTS Average earnings Twice average earnings Three times average earnings Belgium … … … … 93(5) 79(5) 76(5) Denmark … … … … 68(5) 53(5) 48(5) France … … … … 97 94 91 Germany … … … … 76 75 69 Ireland … … … … 87 80 71 Italy … … … … 98 87 82 Japan … … … … 92(5) 86(5) 81(5) Luxembourg … … … … 91(1) 83(1) 76(1) Netherlands … … … … 75 69 61 Sweden … … … … 76(5) 55(5) 46(5) United Kingdom … … … … 79 73 68 USA … … … … 85(5) 78(5) 75(5) NOTES (1) Tax rates and earnings are those for 1974 or 1974–75, except for Luxembourg—1973. (2) All figures refer to a married man with two children under 11. It is assumed all the income is from employment of the husband. (3) Cash benefits for children are included. In accordance with OECD convention they are regarded as reducing tax liability before the percentage of average earnings retained is calculated. (4) Normal personal reliefs and minimum expenses deductions are assumed: allowance is made for deductible social security contributions. (5) Local income taxes are included as follows: Belgium—at the rate payable by the great majority. Denmark—at the average rates. Japan—at the rates payable by the great majority. Sweden—at the average rates. USA—at the California rates.