Family Incomes (Hansard, 25 May 1978)

§ Mr. Wakeham
asked the Secretary of State for Social Services if he will publish figures in the Official Report showing the marginal net benefit from a £1 increase in gross earnings as at July 1977, March 1978 and May 1978 for a married couple with two children aged four and six years with the wife not earning, for each £1 increment in gross weekly earnings of husband from £20 per week to £120 per week.

§ Mr. Orme
, pursuant to his reply [Official Report, 9th May 1978; Vol. 949, c. 429–430], gave the following information:
The table below gives the information requested over the range of incomes at £10 intervals from £20 to £120 per week. Because of the disproportionate expense involved I regret that I cannot provide this information for each £1 increment.
1978 on the assumption that there was no 25 per cent. income tax band but that the married man's allowance was increased by a sum equal to the revenue reduction by creating the 25 per cent. band.

§ Mr. Orme
, pursuant to his reply [Official Report, 9th May 1978; Vol. 949, c. 429–430], gave the following information:
The table below gives the information for the range of incomes at £10 intervals 725W from £20 to £120 per week. Because of the disproportionate expense involved

Total income support in:

Gross earnings July 1977 March 1978 May 1978 With 25 per cent. tax band May 1978 No 25 per cent. tax band

£ £ £ £

£20 … … … 29.85 31.91 33.83 33.83

£21 … … … 30.79 32.85 34.76 34.76

£30 … … … 35.79 38.93 39.76 39.76

£31 … … … 36.08 39.22 40.03 40.03

£40 … … … 37.04 40.02 40.80 42.46

£41 … … … 37.02 39.96 40.88 42.79

£50 … … … 37.33 40.54 41.27 42.67

£51 … … … 37.71 40.92 41.65 43.05

£60 … … … 40.94 43.46 45.02 46.42

£61 … … … 41.48 43.83 45.40 45.55

£70 … … … 46.79 46.79 48.35 49.75

£71 … … … 47.39 47.39 48.95 50.35

£80 … … … 52.81 52.81 54.40 55.80

£81 … … … 53.41 53.41 55.01 56.41

£90 … … … 58.83 58.83 60.45 61.85

£91 … … … 59.44 59.44 60.05 62.45

£100 … … … 64.86 64.86 66.50 67.90

£101 … … … 65.46 65.46 67.11 68.51

£110 … … … 71.17 71.17 72.55 73.95

£111 … … … 71.83 71.83 73.15 74.55

£120 … … … 77.77 77.77 78.60 80.00

£121 … … … 78.43 78.43 79.27 80.67

Notes:

1. The following assumptions were made:

Gross rent £5.60 (July and March) £6.30 (May).

Gross rates £2.20 (July and March) £2.35 (May).

Work expenses £2.00 (July and March) £2.10 (May).

2. The basic tax rate has been taken as 33p in the £.

3. The increase in the married man's allowance equivalent in cost to that of the reduced rate band of tax is £400 a year. This increase would also apply to the additional personal allowance for lone parents.

4. It is assumed that the family receives FIS, FSM, FWM and rent and rate rebates where appropriate; that the head claims only the personal and child tax allowances and is not contracted-out for national insurance purposes.

				Total income support in:
Gross earnings	July 1977	March 1978	May 1978 With 25 per cent. tax band	May 1978 No 25 per cent. tax band
				£	£	£	£
£20	…	…	…	29.85	31.91	33.83	33.83
£21	…	…	…	30.79	32.85	34.76	34.76
£30	…	…	…	35.79	38.93	39.76	39.76
£31	…	…	…	36.08	39.22	40.03	40.03
£40	…	…	…	37.04	40.02	40.80	42.46
£41	…	…	…	37.02	39.96	40.88	42.79
£50	…	…	…	37.33	40.54	41.27	42.67
£51	…	…	…	37.71	40.92	41.65	43.05
£60	…	…	…	40.94	43.46	45.02	46.42
£61	…	…	…	41.48	43.83	45.40	45.55
£70	…	…	…	46.79	46.79	48.35	49.75
£71	…	…	…	47.39	47.39	48.95	50.35
£80	…	…	…	52.81	52.81	54.40	55.80
£81	…	…	…	53.41	53.41	55.01	56.41
£90	…	…	…	58.83	58.83	60.45	61.85
£91	…	…	…	59.44	59.44	60.05	62.45
£100	…	…	…	64.86	64.86	66.50	67.90
£101	…	…	…	65.46	65.46	67.11	68.51
£110	…	…	…	71.17	71.17	72.55	73.95
£111	…	…	…	71.83	71.83	73.15	74.55
£120	…	…	…	77.77	77.77	78.60	80.00
£121	…	…	…	78.43	78.43	79.27	80.67
Notes:
1. The following assumptions were made:
Gross rent £5.60 (July and March) £6.30 (May).
Gross rates £2.20 (July and March) £2.35 (May).
Work expenses £2.00 (July and March) £2.10 (May).
2. The basic tax rate has been taken as 33p in the £.
3. The increase in the married man's allowance equivalent in cost to that of the reduced rate band of tax is £400 a year. This increase would also apply to the additional personal allowance for lone parents.
4. It is assumed that the family receives FIS, FSM, FWM and rent and rate rebates where appropriate; that the head claims only the personal and child tax allowances and is not contracted-out for national insurance purposes.