Personal Incomes (Hansard, 17 April 1978)

§ Mr. Lawson
asked the Chancellor of the Exchequer, further to the Written Answer to the hon. Member for Blaby on 21st March, Official Report, columns 520–1, if he will publish a similar table of net income and take-home pay for a 59W married man on average earnings with one child under 11 years of age.

§ Mr. Robert Sheldon
I will let the hon. Member have a reply as soon as possible.

§ Mr. Lawson
asked the Chancellor of the Exchequer if he will publish a table showing the percentage fall in real net income between 1973–74 and 1977–78 for a man on average earnings: (a) if he is single, (b) if he is married with no children, (c) if he is married with two children under 11 years and (d) if he is married with two children under 11 years and two between 11 and 16 years.

§ Mr. Robert Sheldon
, pursuant to his reply [Official Report, 13th April 1978]—gave the following information:
The following figures show the percentage fall to 1977–78, and to 1978–79 on the basis explained in paragraph 3 of the notes.

Percentage fall in real net income since 1973–74 for an employee on average earnings

1977–78 1978–79 (notional)

Single person 10.9 8.0

Married couple without children 8.5 5.6

Married couple with two children under 11 8.0 3.7

Married couple with four children, two under 11 and two between 11 and 16 8.6 3.6

Notes:

1. Net income is earnings, plus family allowance in 1973–74 and child benefit in 1977–78 and 1978–79 less income tax and national insurance contributions. In 1973–74 and 1978–79 the national insurance contributions are those of an employee who was not contracted out of the graduated pension scheme.

2. The prices index used is the general index of retail prices—all items.

3. Average earnings are taken from the New Earnings Survey estimates of the average weekly earnings of full-time adult male workers in all occupations, manual and non-manual. For 1973–74 the figure used is the average of the New Earnings Survey estimates for April at the start and finish of the tax year, and for 1977–78 the April 1977 figure has been updated to October 1977 by the monthly index of average earnings. For 1978–79 average earnings have been notionally estimated as follows: on the basis that in October 1977 a man on average earnings has not yet received an increase in the current pay round, it may be assumed that his earnings will rise by a further 10 per cent. to October 1978 in accordance with the Government's guideline. It is assumed that the retail prices index will rise by 7 per cent. over the same period.

	Percentage fall in real net income since 1973–74 for an employee on average earnings
	1977–78	1978–79 (notional)
Single person	10.9	8.0
Married couple without children	8.5	5.6
Married couple with two children under 11	8.0	3.7
Married couple with four children, two under 11 and two between 11 and 16	8.6	3.6
Notes:
1. Net income is earnings, plus family allowance in 1973–74 and child benefit in 1977–78 and 1978–79 less income tax and national insurance contributions. In 1973–74 and 1978–79 the national insurance contributions are those of an employee who was not contracted out of the graduated pension scheme.
2. The prices index used is the general index of retail prices—all items.
3. Average earnings are taken from the New Earnings Survey estimates of the average weekly earnings of full-time adult male workers in all occupations, manual and non-manual. For 1973–74 the figure used is the average of the New Earnings Survey estimates for April at the start and finish of the tax year, and for 1977–78 the April 1977 figure has been updated to October 1977 by the monthly index of average earnings. For 1978–79 average earnings have been notionally estimated as follows: on the basis that in October 1977 a man on average earnings has not yet received an increase in the current pay round, it may be assumed that his earnings will rise by a further 10 per cent. to October 1978 in accordance with the Government's guideline. It is assumed that the retail prices index will rise by 7 per cent. over the same period.