HC Deb 03 March 1978 vol 945 cc432-3W
Mr. Lawson

asked the Chancellor of the Exchequer, further to the Written Answer to the hon. Member for Birmingham, Perry Barr (Mr. Rooker), Official Report, 21st February, columns 621–42, if he will republish the various tables showing, in an extra column, the percentage increase in net earnings as a result of the changes in taxation.

Mr. Robert Sheldon,

pursuant to his reply [Official Report, 1st March 1978 Vol. 945, c. 269], gave the following answer:

The figures are as follows:

Gross earnings equivalent of increase in net income
Annual earnings Reduction in income tax (a) Annual (b) Weekly (c) As percentage of gross earnings Percentage increase in income after tax
£ £ £ £ per cent. per cent.
16,000 868.99 3,458.96 66.52 21.6 10.5
18,675 937.49 4,380.53 84.24 23.5 10.4
19,425 937.49 4,733.47 91.03 24.4 10.2
19,675 937.49 4,851.12 93.29 24.7 10.2
21,175 944.69 5,557.00 106.87 26.2 9.8
23,000 1,047.09 6,159.35 118.45 26.8 10.6
31,000 1,047.09 6,159.35 118.45 19.9 9.3
35,000 1,047.09 6,159.35 118.45 17.6 8.8
63,000 1,047 09 6,159.35 118.45 9.8 6.3
MARRIED COUPLE WITH 2 CHILDREN AGED UNDER 11
2,000 94.88 247.90 4.77 12.4 7.6
4,000 114.88 281.65 5.42 7.0 5.2
6,000 134.88 287.51 5.53 4.8 4.1
7,000 167.13 393.42 7.57 5.6 4.3
7,700 241.38 551.26 10.60 7.2 5.3
8,800 340.89 844.76 16.25 9.6 6.4
9,200 369.19 946.10 18.19 10.3 6.7
9,420 391.19 1,028.60 19.78 10.9 6.9
10,000 440.24 1,223.73 23.53 12.2 7.4
10,900 445.54 1,532.26 29.47 14.1 8.2
11,200 460.54 1,617.97 31.11 14.4 8.3
13,200 567.34 2,243.63 43.15 17.0 8.9
15,000 664.14 2,839.56 54.61 18.9 9.4
16,000 705.19 3,203.76 61.61 20.0 9.6
18,675 761.99 3,830.53 73.66 20.5 9.5
19,425 761.99 4,183.47 80.45 21.5 9.3
19,675 761.99 4,301.12 82.71 21.9 9.2
21,175 761.99 5,007.00 96.29 23.6 8.9
23,000 852.87 5,781.59 111.18 25.1 9.4
31,000 852.87 5,781.59 111.18 18.7 8.4
35,000 852.87 5,781.59 111.18 16.5 7.9
63,000 852.87 5,781.59 111.18 9.2 5.7

The gross earnings equivalents represent the increases in gross earnings that would have been required under 1976–77 income tax rates and allowances to give the same increase in income after tax and national insurance contributions as was given in 1977.

For the married couple with two children account has been taken of the replacement of family allowance by child benefits and the consequent reduction of child tax allowances; for 1977–78 net income includes child benefits, and for 1976–77 family allowance except where gross earnings exceed £10,000—in which case it would have been advantageous not to claim family allowance.