HC Deb 20 June 1978 vol 952 cc156-8W
Mr. Walter Johnson

asked the Chancellor of the Exchequer what has been the increase in percentage terms in the take-home pay of a married man with two children under 16 years, who earns £70, £80, £90 and £100 per week, respectively, as a result of Budget changes from April 1977 to the present.

Mr. Robert Sheldon,

pursuant to his reply [Official Report, 19th June 1978], gave the following information:

A comparison in terms of take-home pay is affected by the change to child benefits, and a comparison in terms of net income is more appropriate. The following figures, based on a comparison of the net income including family allowance in March 1977—the Budget date in that year—with the present net income including child benefit, give complete details:

Net income in March 1977 Total of subsequent changes Net income after the 1978 Budget
Weekly Earnings Take Home Pay Family Allowance Total Decrease in tax Increase in NIC Increase in Family Allowance Child Benefit Take Home Pay Child Benefit Total Percentage increase in net income
£ £ £ £ £ £ £ £ £ Per cent.
£70 52.40 1.50 53.90 2.85 0.50 3.10 54.75 4.60 59.35 10.1
£80 58.35 1.50 59.85 2.95 0.60 3.10 60.70 4.60 65.30 9.1
£90 64.30 1.50 65.80 3.05 0.70 3.10 66.65 4.60 71.25 8.3
£100 70.45 1.50 71.95 3.15 1.00 3.10 72.60 4.60 77.20 7.3
The figures take account of the Budget proposals but not the subsequent amendments made in Committee.
It has been assumed that the children are aged between 11 and 16 years.

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