HC Deb 31 July 1978 vol 955 c139W
Mrs. Sally Oppenheim

asked the Secretary of State for Social Services what would have been the net spending power

ONE-HALF NATIONAL AVERAGE EARNINGS (£p)
Date Weekly earnings Net Weekly spending power Net weekly spending power at February 1978 prices
February 1974 23.10 20.36 38.07
February 1978 43.10 39.86 39.86

TWO-THIRDS NATIONAL AVERAGE EARNINGS
Date Weekly earnings Net weekly spending power Net weekly spending power at February 1978 prices
February 1974 30.70 22.56 42.19
February 1978 57.50 42.53 42.53

Notes:

1. The figures relate to a married couple with two children aged four and six.

2. National average earnings have been taken as £46.10 in February 1974 and £86.20 in February 1978. Half and two-thirds figures have been rounded to the nearest 10p. The estimates relate to the earnings of men aged over 21, in all occupations, where pay has not been affected by absence. Estimates for April of each year are obtained from the New Earnings Survey—NES—and those for other months, which are less reliable, are interpolated between, or extrapolated from, the NES estimates. The figure for February 1978 is provisional; that for February 1974 has been estimated by the Department of Health and Social Security from figures given for December 1973 and March 1974, and discounts the effect of the three day week.

3. Net spending power is defined as gross earnings plus child benefit—family allowance for 1973–74 —familt income supplement, rent and rate rebates and the value of free school meals and free welfare milk; less tax, employee's national insurance contribution, gross rent and rates and work expenses.

4. The following assumptions have been made:

Rent Rates Work expenses Value of free school meals Value of free welfare milk
£ £ £ £ £
February 1974 3.56 1.19 0.65 0.60 0.39
February 1978 5.60 2.20 2.00 1.25 0.81