§ Mr. Rookerasked the Chancellor of the Exchequer if he will express net earnings as a percentage of gross earnings for a worker on average wages for each year since 1948, assuming the worker is (a) single, (b) married, (c) married with one child, (d) married with two children and (e) married with four children.
§ Mr. Denzil DaviesThe figures are as follows:
601W
TAKE HOME PAY AS A PERCENTAGE OF GROSS EARNINGS Single person Married couple without children Married couple with one child under 11 Married couple with two children under 11 Married couple with four children two under 11 and two between 11 and 16 YEAR per cent. per cent. per cent. per cent. per cent. 1964–65 77.5 82.4 87.0 90.1 94.7 1965–66 75.7 80.5 85.2 88.5 94.6 1966–67 75.2 79.8 84.3 87.9 94.0 1967–68 74.3 78.7 83.0 86.6 92.9 1968–69 73.6 77.7 81.7 83.3 87.8 1969–70 72.7 76.6 80.2 81.4 85.1 1970–71 71.3 75.2 78.5 79.5 82.8 1971–72 71.9 75.2 78.9 80.8 85.5 1972–73 73.6 76.5 79.8 81.4 85.5 1973–74 72.5 75.0 77.9 79.2 82.7 1974–75 69.0 72.1 75.2 77.0 81.4 1975–76 67.0 70.1 72.8 74.0 77.3 1976–77 66.5 69.9 72.9 74.6 78.6 1977–78 68.5 73.0 74.7 76.2 79.8 1978–79 69.6 74.0 74.7 75.5 77.6 Take home pay is gross earnings minus income tax and national insurance contributions. For families the figures therefore exclude family allowances—for years up to 1976–77—and child benefit—from 1977–78. The calculations of tax however, show the tax deducted from earnings, including tax on family allowance and family allowance deduction—"clawback"—where appropriate.
For years up to and including 1969–70 average earnings are the Department of Employment's estimates of the average weekly earnings of full-time male manual workers in October of each year. For later years to 1976–77 the figures are based on the average of hte New Earnings Survey estimates of the average earnings of similar workers in April at the start and finish of each income tax year. based on the average of the New Earnings Survey estimate has been updated to October 1977 by the monthly index of average earnings, and for 1978–79 an estimate for May 1978 has been used, obtained by updating in line with movements in the new series of the monthly index of average earnings.
For years prior to 1975–76 it has been assumed that the employee was not contrated out of the graduated pension scheme.
The figures for married couples with children are affected by the transition from child tax allowances and family allowances to tax free child benefits starting in 1977–78.
§ Miss Richardsonasked the Chancellor of the Exchequer with reference to 602W the statement made by the hon. Member for Norfolk, North Official Report, 25th July, c. 1387 (i) what would be the take-home pay after tax and national insurance contribution of a family with two young children when the man is earning £46 per week and £58 per week and what would be their net disposable income after payment of average rent and rates and receipt of benefits and (ii) what would be the corresponding figures if the man on £46 per week paid £11.50 rent and the man on £58 paid £16 rent.
§ Mr. Joel BarnettThe figures are as follows:
a. b. £ £ i. Take home pay (after tax and NIC) 39.85 47.25 Net weekly spending power 43.32 46.38 ii. Take-home pay (after tax and NIC) 39.85 47.25 Net weekly spending power 41.24 42.50 In i., the net weekly spending power takes account of the payment of average rent and rates of £6.30 and £2.35 per week and in both i. and ii. where applicable of family income supplement, child benefit, rent rebate, rate rebate, free school meals and free welfare milk.
My hon. Friend seems to have arrived at a "net spending power" of £28 net, from £46 gross in the following way:
603W
£ Weekly wage 46.00 less tax 3.16 less NIC 2.99 less rent 11.50 "Net pay" £28.35 These figures seem to accurately record take-home pay, after deducting rent, but make no allowance for rent rebates and also other benefits, as follows:
£ "Net pay" 28.35 Rates -2.35 Rent rebate 6.38 Rate rebate 1.23 Child benefit 4.60 FIS 0.90 Free school meals 1.25 Free welfare milk 0.88 Weekly spending power £41.24 For an average rent of £6.30 the weekly spending power rises to £43.32, as shown in the answer.
The figures for the man on £58 per week with a rent of £16 per week cannot be reconciled so easily. The corresponding figures to those above are:
£ Weekly wage 58.00 less tax 6.98 less NIC 3.77 less rent 16.00 "Net pay" £31.25
£ "Net pay" 31.25 Rates - 2.35 Rent rebate 7.19 Rate rebate 0.56 Child benefit 4.60 FIS — Free school meals 1.25 Free welfare milk — Weekly spending power £42.50 For an average rent of £6.30 the weekly spending power rises to £46.38 as shown in the answer.
§ Mr. Trotterasked the Chancellor of the Exchequer what was the take-home pay and net income for a married man with two children earning (a) £3,000, (b) £4,000, (c) £5,000, (d) £6,000, (e) £7,000, (f) £8,000, (g) £9,000, (h) £10,000, (i) £12,000, (j) £15,000, and (k) £20,000 in 1973–74; and what the given pay would have to be in each case in 1977–78 in order to permit the same net income as in 1973–74 in real terms.
§ Mr. Robert SheldonI regret that in the time available it has not been possible to provide the information requested. I shall write to the hon. Member.