§ Mr. Tebbitasked the Chancellor of the Exchequer what has been the increase or decrease in the real value of the net take-home pay of the average industrial worker from March 1974 to the latest available date; what has been the increase or decrease in the value of cash benefits from public agencies and of benefits from public agencies and of benefits in kind from public agencies over the same period; and if these changes have been planned as acts of policy.
§ Mr. Joel Barnett,pursuant to his reply [Official Report, 22nd November 1978; Vol. 958, c. 645], gave the following reply:
On the basis of the latest earnings and prices figures, and taking into account the recent increase in child benefit, I estimate that the net income of a married man with two children not over 11, and earnings equal to the average for full-time manual men, has increased by rather more than 1 per cent. since March 1974. Net income in both years is defined and estimated as in the reply to the hon. Member on 8th June 1978.—[Vol. 951, c. 242–3.] Income tax this year is calculated as if the Finance Act 1978 has been fully operative from the beginning of the tax year.
Estimates of the value of cash benefits and benefits in kind from public agencies to households of various types are given in the annual series of articles prepared by the Central Statistical Office and published in "Economic Trends". The last 795W annual article appeared in the February 1978 issue and gave figures for 1976.
Changes in the level of publicly provided benefits have been in accordance with Government policy; changes in net income from employment depend, amongst other things, on the rate of inflation which is in turn critically dependent on the level of increase in earnings. The best way to ensure the maintenance of net income is to achieve moderation in pay settlements, as the experience of the last pay round has shown.