§ Mr. Arthur Lewisasked the Secretary of State for Employment to what extent at 1 June 1979 a salary of £8,000 per annum paid in June 1975 would have to be raised to maintain its same relative purchasing power.
§ Mr. Jim LesterA married man with two children aged under 11 years, with a salary of £8,000 per annum in June 1975 would have required a salary of £11,985 in May 1979 in order to meet increases in retail prices as measured by the RPI, and in income tax and national insurance contributions and allowing for child benefit, using the income tax rates set out in the Finance Act 1979.
Allowing for the changes in income tax rates proposed in the Budget, the corresponding salary for May 1979 would be £11,168.