HC Deb 22 June 1979 vol 968 cc731-2W
Mr. Ralph Howell

asked the Secretary of State for Social Services (1) further to his reply to the hon. Member for Birkenhead (Mr. Field), Official Report, 24 May, c. 214, what is his estimate of the reasons why only 240,000 families had theoretical marginal tax rates in 1976 of between 50 per cent. and 75 per cent., whereas about 1.1 million people were drawing rent rebates or allowances and a further 2.6 million were receiving rate rebates, both of which benefits are adjusted as soon as earnings increase;

(2) whether his reply to the hon. Member for Birkenhead, Official Report, 24 May, c. 214, takes into account families receiving supplementary benefit; and if not, what would be the amended figures.

Mr. Prentice

Since these estimates refer to families in which the head was a full-time employee or self-employed, no question of amended figures arises.

Relatively few recipients of rent re-bates and allowances were in full-time work in 1976. It follows that the numbers theoretically liable to marginal tax rates of 50 per cent. or more must also have been comparatively low.

The loss of rate rebates coupled with increased tax and national insurance contributions could not in itself have given rise to a marginal loss of 50 per cent. or more.

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