HC Deb 21 March 1978 vol 946 cc520-1W
Mr. Lawson

asked the Chancellor of the Exchequer if he will publish a table showing, for each of the last eight years, the average real weekly net income and the average real weekly take-home pay of a married man on average earnings with two children under 11, on the latest available price basis.

Mr. Robert Sheldon,

pursuant to his reply [Official Report, 9th March 1978; Vol. 945, c. 762], gave the following information:

The figures requested are as follows, expressed in January 1978 prices, and in each case averaged over the appropriate year:

Average weekly net income £ Average weekly take-home pay £
1970–71 … … 64.40 62.10
1971–72 … … 66.30 64.20
1972–73 … … 70.00 68.10
1973–74 … … 70.40 68.60
1974–75 … … 69.90 68.40
1975–76 … … 66.50 64.50
1976–77 … … 65.60 63.90
1977–78 … … 64.70 62.20

Take-home pay is earnings less income tax and national insurance contributions. Net income is take-home pay plus family allowance for 1970–71 to 1976–77 and child benefits for 1977–78.

Average earnings for years up to and including 1976–77 are the average of the New Earnings Survey estimates of the average weekly earnings of full-time adult male workers in all occupations, manual and non-manual, for April at the start and finish of each income tax year. For 1977–78 the April 1977 New Earnings Survey figure has been updated by the monthly index of average earnings to give an estimate of average earnings in October 1977.

Where the rate of national insurance contributions changed during the course of the income tax year, the calculations are based on the average rate in force for the year. For years prior to 1975–76 it has been assumed that the employee was not contracted out of the graduated pension scheme.

The index used to express the figures in terms of the prices of January 1978 is the general index of retail prices—all items, using the index for the month of October 1977 to represent the price level of the financial year 1977–78.

In 1973–74 the United Kingdom suffered a fall in real national disposable income, due mainly to the rise in oil and other commodity prices. This fed through to later falls in real personal disposable income (RPDI). Following the financial recovery of 1977, RPDI is now increasing.