§ Mr. Lawsonasked the Chancellor of the Exchequer if he will update with an estimate for 1978–79, and on the basis of the latest prices index the table provided in answer to the hon. Member for Blaby. —[Official Report, 21st March, c. 520.]
511W
§ Mr. Robert Sheldon, pursuant to his reply [Official Report, 17th July 1978; Vol. 954, c. 53], gave the following information:
The figures expressed at June 1978 prices are as follows:
MARRIED MAN ON THE AVERAGE OF EARNINGS IN ALL OCCUPATIONS, WITH TWO CHILDREN UNDER 11 Year Average real weekly net income at June 1978 prices Average real weekly take home pay at June 1978 prices £ £ 1970–71 67.00 64.60 1971–72 69.00 66.80 1972–73 72.80 70.90 1973–74 73.30 71.40 1974–75 72.70 71.20 1975–76 69.20 67.10 1976–77 68.30 66.50 1977–78 67.60 64.90 These figures have been calculated on the same basis as those given in reply to the hon. Member on 21st March 1978 [Vol 946, c. 520–1] except that the figures have now been expressed at June 1978 prices, and the estimate of average earnings in October 1977 (used for 1977–78) has been revised slightly, owing to changes in the seasonally adjusted monthly index of average earnings. The retail prices index for the year 1977–78 has now been used in place of the index for October 1977.
Real weekly net income and take home pay in 1978–79 will depend on increases
£ million Current balance Direct contribution of North Sea oil and gas Contribution of other factors 1975 … -1,617 -546 -1,071 1976 … -859 -105 -754 1977 (first half) … -858 +361 -1,219 1977 (second half) … +1,023 +546 +477 1978 (first quarter) … -306 +454 -760 Figures for years before 1975 are not available but it seems likely that there was a small negative contribution in 1973 and a larger one in 1974. Figures for half years before 1977 are not available. Figures for the years 1973 and 1974 will be published in September in the "United Kingdom Balance of Payments 1967–1977." Figures for the second quarter of 1978 will be published in "Economic Trends" in September 1978. The way in which the estimates of the direct contribution of North Sea oil and gas to the current balance were calculated is described in an article on page 76 of "Economic Trends" for June 1978. Figures for oil and gas are not available separately. 512W in earnings and prices for the remainder of the year. The increase in real net income between May 1977 and May 1978 (the latest date available) calculated from the monthly index of average earnings (new series) is 5.6 per cent. This is on the basis of the tax rates and allowances for 1978–79 in the Finance Bill as approved by the House.
It has been assumed that the employee is not contracted out of the graduated pension scheme in 1978–79.