HC Deb 04 June 1980 vol 985 cc730-3W
Mr. Ralph Howell

asked the Chancellor of the Exchequer if he will publish a table for each year since 1974—1974 equalling 100—comparing movements in the retail price index with indices of (a) income tax, less family allowance or child benefit where appropriate, (b) national insurance contribution and (c) average unrebated local authority rates, for each of a single person, a married couple and couples with two and four children, including teenage children, assuming in each case earnings equal to 100 per cent., 75 per cent. and 50 per cent, of average male manual earnings; and if he will include estimates for the current financial year.

Mr. Peter Rees

Figures relating to financial years are as follows:

TABLE 1
Indices, 197475 = 100
National Insurance Contributions
Retail prices index 50 per cent. of average manual earnings 75 per cent. of average manual earnings 100 per cent. of average manual earnings Rates
1974–75 100 100 100 100 100
1975–76 125 102 109 113 140
1976–77 144 121 129 133 152
1977–78 164 135 144 148 171
1978–79 177 174 185 191 188
1979–80 205 203 216 223 218
TABLE 2
Indices, 197475 = 100
INCOME TAX MINUS FAMILY ALLOWANCE/CHILD BENEFIT
Single person Married couple Married with 2 children under 11 Married with 4 children aged 16, 14,12 and 9
50 75 100 50 75 100 50 75 100 50 75 100
per cent. average manual earnings per cent. average manual earnings per cent. average manual earnings per cent. average manual earnings per cent. average manual earnings per cent. average manual earnings per cent. average manual earnings per cent. average manual earnings per cent. average manual earnings per cent. average manual earnings per cent. average manual earnings per cent. average manual earnings
1974–75† 100 100 100 100 100 100 —100* 100 100 —100* —100* 100
1975–76 143 136 134 153 139 135 46 160 143 —155 1 183
1976–77 166 156 153 172 156 152 —2 171 158 —155 —21 192
1977–78 160 159 159 127 145 150 —238 144 151 —190 —100 179
1978–79 164 169 171 129 156 163 —426 120 150 —323 —278 137
1979–80t 183 184 185 148 171 176 —649 103 148 —414 —399 107
*A min us sign indicates that the family allowance/child benefit exceeded the tax.
† As a percentage of earnings, tax less benefits were:
Per cent. Per cent. Per cent. Per cent. Per cent. Per cent. Per cent. Per cent. Per cent. Per cent. Per cent. Per cent.
1974–75 17 22 25 11 18 22 —2 9 15 6 —3 —12
1979–80 15 20 23 8 15 19 —8 5 11 3 —6 —24

For 1974–75 to 1978–79 the figures are based on the averages of the new earnings survey estimates of the average earnings of full-time adult male manual workers at the start and finish of each tax year. To give an estimate for 1979–80 the April 1979, NES figure have been updated to October 1979 by the monthly index of average earnings. Figures of average earnings and the retail price index in 1980—81 are not yet available.

It has been assumed that the employees were not contracted out of the earnings-related or graduated pension schemes.

The figures for rates are the local rates and water rates component of the retail prices index. Figures for rates appropriate to the earnings levels and family types specified are not available.