§ Mr. Meacherasked the Chancellor of the Exchequer what has been the level of, respectively, real weekly net income and real weekly take-home pay at October 1950 and for each October since, both at current prices and at October 1978 prices; and what are the latest 1979 figures on both bases.
§ Mr. Peter Rees, pursuant to his reply [Official Report, 14 June 1979; Vol. 968, c. 295], gave the following answer:
The weekly figures for a married man on average earnings with two children under 11 are as follows:
At October 1978 prices October Takehome pay Net income Takehome pay Net income £ £ £ £ 1950 7.20 7.50 39.90 41.30 1951 8.00 8.20 40.80 42.10 1952 8.70 9.00 42.10 43.70 1953 9.10 9.50 43.70 45.60 1954 9.80 10.20 46.00 47.80 1955 10.70 11.20 48.20 50.40 1956 11.50 11.90 49.70 51.40 1957 12.00 12.40 50.40 52.10 1958 12.10 12.50 50.10 51.70 1959 12.70 13.10 52.70 54.30 1960 13.50 13.90 55.20 56.80 1961 14.00 14.40 54.70 56.30 1962 14.40 14.80 54.70 56.30 1963 15.30 15.70 57.10 58.50 1964 16.30 16.70 58.30 59.70 1965 17.30 17.70 59.10 60.50 1966 17.90 18.30 58.70 60.00 1967 18.60 19.00 59.90 61.80 1968 19.10 19.90 58.30 60.80 1969 20.20 21.10 58.50 61.10 1970 22.40 23.30 60.40 62.80 1971 25.00 25.90 61.70 63.90 1972 29.10 30.00 66.50 68.50 1973 32.00 32.90 66.60 68.50 1974 37.90 38.80 67.40 69.00 1975 45.30 46.80 64.00 66.10 1976 51.10 52.60 62.90 64.70 1977 56.70 59.20 61.20 63.90 1978 64.10 68.70 64.10 68.70 The comparable figures at current prices of take-home pay and net income for March 1979, the latest available, are £67 and £68.78. At this earnings level the post-Budget figures are £73.03 and £76.78. The average earnings used in October 1950 to October 1969 are the Department of Employment's estimates of the average weekly earnings of full-time adult male manual worker. For 171W later years the previous April's new earnings survey estimate of the average earnings of similar workers has been updated to the appropriate month taking account of movement in the seasonally adjusted index of average earnings—old series. October 1978 has been obtained by updating the April 1978 new earnings survey estimates, 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 plus family allowance or child benefit less income tax and national insurance contributions.
Take-home pay is earning less income tax and national insurance contributions.
It has been assumed that the employee was not contracted out of the graduated or earnings-related pension schemes.
The index used for October 1962 and later months is the general index of retail prices, all items. For earlier months the index of prices of consumer goods and services given in table 2 of the CSO publication "The Internal Purchasing Power of the Pound" has been used, taking the figure for the appropriate calendar year.