§ Mrs. Renée Shortasked the Chancellor of the Exchequer by what percentage the income tax for (a) a single person and (b) a family with two children has risen as between 1964, 1970, 1974, 1979 and the latest date.
Single Person Earnings per week Married with 2 children Year Tax Percentage of earnings taken in tax Tax *fam/CB *Tax less fam/CB *Percentage of earnings taken in tax less fam/CB £ £ £ £ £ 1964–65 18.11 3.11 17.2 0.83 0.40 0.43 2.4 1970–71 28.05 6.42 22.9 4.11 0.90 3.21 11.4 1974–75 49.65 12.42 25.0 8.48 0.90 7.58 15.3 1979–80 102.35 23.26 22.7 19.51 8.00 11.51 11.2 1980–81 122.70 28.88 23.5 24.43 8.55 15.88 12.9 (October) * Family allowance or child benefit, as appropriate for the year in question.
§ Mr. Fieldasked the Chancellor of the Exchequer if he will update the information on mortgage interest tax relief, retirement annuity relief and life assurance relief given in the answer to the hon. Member for Barking (Miss Richardson) on 6 February 1980, Official Report, column 258–59.
§ Mr. Peter Rees[pursuant to his reply, 13 April 1981, c. 12]: The information for a full year at 1981–82 income levels is as follows:
Relief in excess of basic rates:
- (a) Mortgage interest relief—about £140 million
- (b) Retirement annuity relief—about £55 million
- (c) Life assurance relief—nil
Life assurance relief is obtained by deduction on payment of the premium and the relief is at the same rate for higher rate and basic rate taxpayers.
156W
§ Mr. Peter Rees[pursuant to his reply, 6 April 1981, c. 185]: the increase in tax largely depends on the increase in earnings, but as an example the following figures show the position for a man on average manual earnings in each of the years.
The figures of tax for the married man with two children take account of family support, but still are not strictly comparable because between 1974–75 and 1979–80 the system was changed by phasing out child tax allowances—and taxable family allowances—and replacing these by tax-free child benefit.
For 1964–65 the average earnings are the average weekly earnings of male manual workers aged 21 and over in manufacturing and certain other industries in October in each year. For 1970–71 to 1979–80 the average earnings figures are the averages of the figures obtained in the New Earnings Survey of the average weekly earnings of full-time adult male manual employees at the April of the beginning and end of each year. For 1980–81 the estimated level of earnings for October 1980 has been used as the best estimate at present. This has been obtained by updating the figure in the New Earnings Survey for April 1980 of average earnings of full-time adult male manual workers taking account of the movements in a centred three-month moving average of the seasonally adjusted whole economy index of average earnings.
It has been assumed that the children are aged under 11 years.