§ Mr. Peter Bottomleyasked the Secretary of State for Social Services if he will publish in the Official Report a table showing the net gain to two and one-parent families with one and two children paying tax at the 25 per cent. rate and those paying tax at the standard rate of 520W the changes in taxation and child benefit which took place in April 1978.
§ Mr. Robert SheldonI have been asked to reply.
For those families whose marginal rate of tax was the basic rate in both 1977–78 and 1978–79, the net weekly gain was as shown below. The families which in 1977–78 were either not paying tax or paying at the basic rate, and in 1978–79 have a marginal rate of tax at the lower rate, gained a minimum of the amount shown under the 25 per cent. column rising to the amount shown in the basic rate column at the top of the lower rate band.
Net weekly gain for those paying tax in 1978–79 at 25 per cent. only at least Basic rate (see note) £ £ (a) Two parent family with one child 1.22 2.49 (b) Two parent family with two children 1.69 2.84 (c) One parent family with one child 1.72 2.99 (d) One parent family with two children 2.19 3.34 It has been assumed that the children are all aged under 11.
The figures in the basic rate column have been calculated on the basis of an unchanged rate of 34 per cent.; in addition, the reduction in the basic rate to 33 per cent. gave a further gain to those liable to tax at the basic rate, the extent of the gain depending on the level of income.