HC Deb 05 March 1979 vol 963 cc566-7W
Mr. Raison

asked the Chancellor of the Exchequer what would be the net increase in family income, after deducting tax and variations in social security and other means-tested benefits, for a father at work and wife at home with two children of school age, of pay increases of 5 per cent., 10 per cent. and 15 per cent. when the father's gross earnings are £45, £55, £65 and £75 a week.

Mr. Orme

, pursuant to his reply [Official Report, 16 February 1979; Vol. 962, c. 679], gave the following information:

The comparisons of net weekly spending power which involve yearly wage increases and changes in tax and benefit levels have been made over a past period of a year. The figures given in the table below therefore, compare the net weekly spending power of a man with gross earnings of £45, £55, £65 and £75 a week in November 1977, with his position a year later when those earnings had been increased by 5, 10 or 15 per cent. The tables are based on standard assumptions, for example on housing and work expenses, and must be regarded as illustrative only.

MARRIED COUPLE WITH CHILDREN AGED 4 AND 6
Earnings Tax NI FIS Child benefit Rent Rent rebate Rates Rate rebate Work expenses Free school meals Free welfare milk Total income support
November 1977 … … … … 45.00 3.39 2.59 1.40 2.50 5.60 3.28 2.20 1.29 2.00 1.25 0.81 39.75
November 1978—
+5 per cent. … … … … 47.25 3.47 3.07 1.40 6.00 6.30 3.42 2.35 1.28 2.10 1.25 0.95 44.26
+10 per cent. … … … … 49.50 4.17 3.22 0.30 6.00 6.30 3.23 2.35 1.21 2.10 1.25 0.95 44.30
+15 per cent. … … … … 51.75 4.91 3.36 — 6.00 6.30 2.90 2.35 — 2.10 1.25 — 43.98
November 1977 … … … … 55.00 6.79 3.16 — 2.50 5.60 1.82 2.20 0.78 2.00 1.25 — 41.60
November 1978—
+5 per cent. … … … … 57.75 6.89 3.75 — 6.00 6.30 1.88 2.35 0.74 2.10 1.25 — 46.23
+10 per cent. … … … … 60.50 7.80 3.93 — 6.00 6.30 1.41 2.35 0.57 2.10 1.25 — 47.25
+15 per cent. … … … … 63.25 8.71 4.11 — 6.00 6.30 0.94 2.35 0.41 2.10 1.25 — 48.28
November 1977 … … … … 65.00 10.19 3.74 — 2.50 5.60 — 2.20 0.18 2.00 1.25 — 45.20
November 1978—
+5 per cent. … … … … 68.25 10.36 4.44 — 600 6.30 — 2.35 0.11 2.10 — — 48.81
+10 per cent. … … … … 71.50 11.43 4.65 — 6.00 6.30 — 2.35 — 2.10 — — 50.67
+15 per cent. … … … … 74.75 12.50 4.86 — 6.00 6.30 — 2.35 — 2.10 — — 52.64
November 1977 … … … … 75.00 13.59 4.31 — 2.50 5.60 — 2.20 — 2.00 — — 49.80
+5 per cent. … … … … 78.75 13.82 5.12 — 6.00 6.30 — 2.35 — 2.10 — — 55.06
+10 per cent. … … … … 82.50 15.06 5.36 — 6.00 6.30 — 2.35 — 2.10 — — 57.33
+15 per cent. … … … … 86.25 16.30 561 — 6.00 6.30 — 2.35 — 2.10 — — 59.59
Notes: The assumptions on the children's ages, housing expenses for this size of family and work expenses are shown in the Table. It has also been assumed that:
(i) the couple have no other personal income;
(ii) national insurance contributions (NI) are payable at the non-contracted out rate;
(iii) there are no tax allowances apart from personal tax allowances; and
(iv) means tested benefits are taken up in full.
FIS = Family Income Supplement.