§ Mr. Carter-Jonesasked the Chancellor of the Exchequer what would be the gross income and the income tax payable in the financial year 1979–80 of a couple with two children if the husband receives 291W invalidity pension with maximum in validity allowance and mobility allowance and the wife is earning £45 per week; what would be the tax payable on the same gross income if it comprised(a) just income from the husband's earnings, child benefit and mobility allowance and(b) income from the husband's earnings, child benefit, mobility allowance and housewives' non-contributory invalidity pension; and what would be the husband's gross income—including mobility allowance and child benefit—need to be to retain the same net family income if he, and not his wife, was in employment: (1) if his wife were entitled to housewives' non-contributory invalidity pension and (ii) if she were not.
§ 28 Mr. Peter Rees,pursuant to his reply [Official Report,June 1979],gave the following answer:
(a) Where the husband receives invalidity pension with maximum invalidity allowance and mobility allowance and the wife is earning £45 per week the gross income would be £5,930 and the tax nil.
(b) On the same gross income, if it comprised income from the husband's earnings, child benefit and mobility allowance the tax would be £1,072.
292W
REAL NET INCOME AT 1970–71 PRICES Gross Earnings Single Married Married with two children under 11 Married with four children 2 under 11, 2 11–16 years £ £ £ £ £ 1970–71 Lower Quartile … 22.8 16.6 17.7 19.8 22.8 Median … 28.0 20.3 21.4 23.5 26.4 Upper Quartile … 36.1 25.4 26.5 28.6 31.6 1971–72 Lower Quartile … 25.3 16.9 17.9 20.3 23.4 Median … 31.6 20.8 21.7 24.1 27.3 Upper Quartile … 40.0 25.9 26.9 29.3 32.5 1972–73 Lower Quartile … 28.6 18.5 19.4 21.6 24.6 Median … 35.9 22.5 23.4 25.7 28.6 Upper Quartile … 45.1 27.8 28.6 30.9 33.8 1973–74 Lower Quartile … 33.0 19.0 19.8 21.8 24.4 Median … 41.1 23.0 23.8 25.8 28.5 Upper Quartile … 51.3 28.3 29.1 31.1 33.7 1974–75 Lower Quartile … 40.3 18.7 19.7 21.9 24.6 Median … 49.8 22.6 23.6 25.7 28.5 Upper Quartile … 62.3 27.7 28.7 30.9 33.6 1975–76 Lower Quartile … 49.4 17.9 18.9 20.9 23.5 Median … 60.8 21.5 22.4 24.5 27.1 Upper Quartile … 76.4 26.5 27.5 29.6 32.2 1976–77 Lower Quartile … 56.2 17.5 18.5 20.7 23.3 Median … 69.0 20.9 22.0 24.2 26.8 Upper Quartile … 86.7 25.7 26.8 28.9 31.6 1977.78 Lower Quartile … 62.50 17.60 18.90 20.90 23.10 Median … 77.10 21.10 22.40 24.40 26.70 Upper Quartile … 96.70 25.80 27.20 29.10 31.40 1978–79 Lower Quartile … 70.20 18.40 19.70 22.10 24.60 Median … 87.10 22.20 23.50 25.90 28.40 Upper Quartile … 109.00 27.10 28.40 30.80 33.30 (c) On the same gross incomes, if it comprised income from the husband's earnings, child benefit, mobility allowance and housewives' non-contributory invalidity pension the tax would be £875.
(d) To retain a net income of £5,930 it the husband and not the wife was in employment and the wife was entitled to housewives' non-contributory invalidity pension, he would need gross earnings of £6,113.
(e) To retain a net income of £5,930 it the wife were not entitled to the invalidity pension, he would need gross earnings of £7,135.
The figures relate to a married couple with two children.
§ Mr. Fieldasked the Chancellor of the Exchequer if he will present for each year since 1970 net real income at each quartile for the earnings distribution for male workers and if the data could be worked on the assumption of the worker being(a) single(b) married and(c) married with two and four children.
§ 28 Mr. Peter Rees,pursuant to his reply [Official Report,June 1979],gave the following answer:
The figures are as follows:
293WThe dispersion or spread of earnings is the Department of Employment's estimates of the dispersion of gross weekly earnings for all full-time male adult employees, aged 21 and over, manual and non-manual from the new earnings survey, taking the average of the figures at April at the beginning and end of each year. For 1978–79 the assumed levels of earnings for October 1978 were used. They were obtained by updating the new earnings survey estimate of earnings of full-time adult males in April 1978 taking account of movements in a centred three month moving average of the whole economy index of average earnings of all employees.
Net income is earnings less tax and national insurance contributions, plus family allowance or child benefits where appropriate.
The prices index used to express net income at 1970–71 prices is the average of the general index of retail prices for all items for each fiscal year.