§ Miss Richardsonasked the Chancellor of the Exchequer what would be the cost in the 1980–81 financial year of raising the married man's and the additional personal tax allowance by an amount sufficient to provide for standard rate taxpayers a gain in weekly take home pay of (a) £1, (b) £1.80, and (c) £2.
§ Mr. Peter ReesThe cost in a full year at 1980–81 income levels would be(a) £610 million, (b) £1,100 million and (c) £1,220 million.
§ Miss Richardsonasked the Chancellor of the Exchequer what is his most recent estimate of the numbers of (a) two-parent and (b) one-parent families in employment but with incomes below the tax threshold.
§ Mr. Peter ReesI refer the hon. Member to the reply given to the hon. Member for Birkenhead (Mr. Field) on 28 March 1980.—[Vol. 981, c. 719]. That is still the most recent information available.
§ Miss Richardsonasked the Chancellor of the Exchequer if he will list the tax-free income available to (a) a single person, (b) a childless couple and (c) a couple with one, two, three, and four children in the current tax year and the previous tax year at constant prices; and if he will express the figures as a percentage of average earnings.
§ Mr. Peter ReesThe figures are as follows. Tax-free income is defined as personal tax allowance plus child benefit, where appropriate.
457WFor 1979–80 the 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 workers at the April of the beginning and end of each year. For 1980–81 the estimated level of earnings for September 1980—the latest month for which an appropriate estimate of average earnings is available—has been used. 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 3-month moving average of the seasonally adjusted monthly index of average earnings of all employees covering the whole economy.
458W
Average real weekly net income at October 1980 prices Multiples of average earnings Single Married Married with one child under 11 years Married with two children under 11 years Married with two children one under 11 one 11–16 years Married with four children two under 11 and two 11–16 years £ £ £ £ £ £ 1950–51 ½ Average Earnings 27.90 28.60 28.60 30.60 30.60 34.70 ¾ Average Earnings 40.30 43.00 43.90 46.00 46.00 50.00 Average Earnings 52.60 55.30 57.60 61.00 61.00 65.40 1½ Average Earnings 73.80 78.80 82.20 86.10 86.10 94.10 Twice Average Earnings 93.50 98.40 102.60 108.20 108.20 118.70 1955–56 ½ Average Earnings 31.30 32.60 32.60 35.10 35.10 40.10 ¾ Average Earnings 45.50 48.30 49.90 52.40 52.40 57.40 Average Earnings 58.50 62.40 65.30 69.50 69.50 74.70 1¾ Average Earnings 82.30 87.40 92.20 98.00 98.00 108.10 Twice Average Earnings 105.50 110.60 115.70 122.40 122.40 135.30 1960–61 ½ Average Earnings 34.80 36.90 37.20 39.50 39.50 45.00 ¾ Average Earnings 50.60 53.80 56.00 59.40 59.40 64.90 Average Earnings 65.10 69.10 72.40 76.80 77.30 84.90 1 ½ Average Earnings 93.10 97.20 101.30 106.90 108.00 120.10 Twice Average Earnings 121.00 125.10 129.20 134.90 135.90 149.00 1965–66 ½ Average Earnings 38.00 40.80 41.80 43.60 43.60 48.20 ¾ Average Earnings 53.60 57.50 60.60 64.50 64.90 69.80 Average Earnings 68.20 72.60 76.80 81.60 82.30 91.70 1½ Average Earnings 98.90 103.20 107.40 112.90 113.80 126.20 Twice Average Earnings 129.50 133.80 138.00 143.50 144.40 156.80 1970–71 ½ Average Earnings 40.00 44.00 47.00 50.30 50.30 57.50 ¾ Average Earnings 56.40 60.40 63.70 68.10 68.70 78.70 Average Earnings 72.90 76.90 80.20 84.50 85.30 95.20 1½ Average Earnings 107.30 111.40 114.70 119.10 119.80 128.90 Twice Average Earnings 142.10 146.10 149.40 153.70 154.50 164.40 1975–76 ½ Average Earnings 43.20 46.80 49.90 54.20 54.70 63.40 ¾ Average Earnings 60.40 64.10 67.10 71.50 71.90 81.00 Average Earnings 77.80 81.30 84.40 88.60 89.10 98.10 1½ Average Earnings 114.40 118.00 121.10 125.50 125.80 135.00 Twice Average Earnings 148.90 153.60 157.50 162.20 162.80 172.30 1976–77 ½ Average Earnings 41.90 45.90 49.20 53.60 54.00 61.10 ¾ Average Earnings 58.80 62.70 66.00 70.50 70.80 80.10 Average Earnings 75.60 79.50 82.90 87.30 87.70 96.90 1½ Average Earnings 110.00 113.90 117.20 121.70 122.10 131.30 Twice Average Earnings 143.40 148.50 152.70 157.70 158.20 168.00 1977–78 ½ Average Earnings 42.40 47.40 50.70 54.40 54.80 60.40 ¾ Average Earnings 59.30 64.10 67.40 71.30 71.60 79.50
§ Miss Richardsonasked the Chancellor of the Exchequer if he will list for the years 1950–51, 1955–56; 1960–61, 1965–66, 1970–71, 1975–76, and subsequent years, including his estimate for 1980–81, the average real net weekly income, expressed in 1980 prices, of a man on half average earnings, three-quarters average earnings, average earnings, one and a half times average earnings and twice average earnings who is (a) single, (b) married with no children, (c) married with one child aged under 11 years, (d) married with two children aged under 11 years, (e) married with two children, one aged under 11 years and one aged 11 to 16 years and (f) married with four children, two aged under 11 and two aged 11 to 16 years;
§ Mr. Peter ReesThe figures are as follows:
459W
Multiples of average earnings Single Married Married with one child under 11 years Married with two children under 11 years Married with two children one under 11 one 11–16 years Married with four children two under 11 and 11–16 years Average Earnings 76.00 80.90 84.20 88.00 82.60 96.30 1½ Average Earnings 110.30 115.10 118.40 122.30 122.60 130.50 Twice Average Earnings 145.30 151.00 154.70 158.80 159.10 167.20 1978–79 ½ Average earnings 45.40 50.10 54.20 58.30 58.60 66.90 ¾ Average Earnings 63.10 67.80 72.20 76.50 76.80 85.70 Average Earnings 80.90 85.60 89.90 94.30 94.50 103.40 1½ Average Earnings 116.80 121.90 126.20 130.50 130.90 139.80 Twice Average Earnings 156.40 161.20 165.40 169.80 170.10 179.00 1979–80 ½ Average Earnings 46.50 50.90 55.50 60.20 60.20 69.50 ¾ Average Earnings 65.40 69.80 74.50 79.10 79.10 88.40 Average Earnings 84.30 88.70 93.40 98.00 98.00 107.30 1½ Average Earnings 123.60 128.00 132.60 137.30 137.30 146.60 Twice Average Earnings 165.30 169.70 174.30 179.00 179.00 188.30 1980–81 (provisional) ½ Average Earnings 46.70 51.20 55.50 59.80 59.80 68.40 ¾ Average Earnings 66.10 70.60 74.80 79.10 79.10 87.70 Average Earnings 85.40 89.90 94.20 98.50 98.50 107.10 1½Average Earnings 125.40 129.80 134.10 138.40 138.40 147.0 Twice Average Earnings 168.20 172.70 177.00 181.30 181.30 189.00 For the years up to and including 1965–66 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 September 1980 (the latest month for which an appropriate estimate of average earnings is available) has been used. 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 3-month moving average of the seasonally adjusted whole economy index of average earnings. Where appropriate, the figures of income include family allowance and child benefit, in addition to earnings.
It has been assumed that the employees were not contracted out of the earnings-related pension scheme.
The prices index used to express net income and take home pay at constant October 1980 prices is the general index of retail prices for all items.
§ Miss Richardsonasked the Chancellor of the Exchequer if he will estimate the increase in child benefit necessary in November 1981 to maintain equity in tax-free incomes between taxpayers with and without children taking (a) April 1979, after the financial statement, and (b) April 1980 as the starting point and assuming that the real value of personal tax allowances is maintained in April 1981 and that the increase in the retail price index for 1980 on which this is calculated is (i) 14.5 per cent., arid (ii) 15 per cent.
§ Mr. Peter ReesIt is assumed that by "equity in tax-free income" the hon. Member means the application of the same percentage increase to child benefit in November 1981 as to the personal tax allowances for 1981–82.
460WIf the increase in personal tax allowances next April were 14.5 per cent., the level of allowances in November 1981 would be 14.5 per cent. higher than in April 1980 and 35.3 per cent. higher than in April 1979 (taking account of the retrospective effect of the June 1979 Budget). For child benefit to have increased by the same percentages would require a weekly benefit in November 1981 of £5.44 when compared with April 1980 and £5.41 when compared with April 1979.
If the increase in personal tax allowances next April were 15 per cent., the corresponding figures for child benefit in November 1981 would be £5.46 when compared with April 1980 and £5.44 when compared with April 1979.
§ Mrs. Richardsonasked the Chancellor of the Exchequer if he will update for 1979–80 and 1980–81 the figures on family income provided in his reply of 22 January 1980 to the hon. Member for Barking, Official Report, c. 176–188.
§ Mr. Peter ReesThe figures are shown in the table.
The figures for 1979–80 have been revised now that the results of the April 1980 new earnings survey are available. For 1980–81 the estimated level of earnings for September 1980 (the latest month for which an appropriate estimate of average earnings is available) has been used. 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 3-month moving average of the seasonally adjusted whole economy index of average earnings. Where appropriate, the figures of income include child benefit, in addition to earnings.
It has been assumed that the employees were not contracted out of the earnings-related pension scheme.
461W
Percentage of Income Paid in Tax and National Insurance Contributions Half Average Earnings Three-quarters Average Earnings Average Earnings One and half times Average Earnings Two times Average Earnings Tax NIC Tax NIC Tax NIC Tax NIC Tax NIC Single Person 1979–80 15.5 6.5 20.3 6.5 22.7 6.5 25.2 5.7 26.4 4.3 1980–81 (provisional) 17.0 6.7 21.3 6.7 23.5 6.7 25.7 6.1 26.7 4.6 Married Couple 1979–80 8.1 6.5 15.4 6.5 19.1 6.5 22.7 5.7 24.5 4.3 1980–81 (provisional) 9.7 6.7 16.4 6.7 19.8 6.7 23.2 6.1 24.9 4.6 Married Couple with One Child 1979–80 7.5 6.0 14.7 6.2 18.3 6.3 22.1 5.6 24.1 4.2 1980–81 (provisional) 9.0 6.3 15.7 6.4 19.2 6.5 22.7 6.0 24.5 4.5 Married Couple with 2 Children 1979–80 7.0 5.6 14.0 5.9 17.7 6.0 21.6 5.4 23.6 4.1 1980–81 (provsional) 8.5 5.9 15.0 6.2 18.5 6.3 22.2 5.8 24.1 4.4 Married Couple with 4 Children 1979–80 6.2 5.0 12.8 5.4 16.5 5.6 20.6 5.2 22.8 4.0 1980–81 (provisional) 7.5 5.3 13.8 5.7 17.4 5.9 21.2 5.6 23.3 4.3