HC Deb 26 January 1981 vol 997 cc318-20W
Mr. Cook

asked the Chancellor of the Exchequer if he will publish in the Official Report tables comparable to those included in his reply to the hon. Member for Kensington (Sir B. Rhys Williams) on 11 November 1980, showing the parallel figures for each year for gross earnings at the average for male manual workers, twice that average, and five times that average.

Mr. Peter Rees

Figures for the two latest years given in the earlier reply are as in table below. Figures for all the earlier years could be provided only at disproportionate cost. If the hon. Member wishes to have a more limited range of information perhaps he would let me know.

The figures for net incomes for families with children include the appropriate amount of child benefit. Family income supplement is not payable at the earnings levels specified.

The national insurance contributions are calculated at the not contracted out rate, and where the wife works it has been assumed that she would opt to pay the minimum rate. For 1979–80 the average earnings figure is based on the average of the new earnings survey figures for the Aprils at the beginning and end of the year of the average weekly earnings of full-time adult male manual employees, multiplied by 52, on the assumption that average earnings were received in each week of the year. For 1980–81 the estimated level of earnings for September 1980, the same date as in the earlier question, has been used.

Much of the information requested has previously been given in terms of tax and NIC as a percentage of income in my reply to the hon. Member for Birkenhead (Mr. Field) on 19 February 1980—[Vol. 979, c. 174–180.]

Some of the figures in the form required for earlier years appeared in the reply I gave to my hon. Friend the Member for Norfolk, North (Mr. Howell) on 17 June 1980.—[Vol. 986, c. 477–485.] The hon. Member may wish to refer also to the answer I gave to the hon. Member for Barking (Miss Richardson) on 22 January 1980—[Vol. 977, c. 189–192]—which gives related information. It should be noted, however, that for earlier years the figures for families with children depend on the ages of the children, and these are not always specified in the same way in different questions.

I regret that in the answer of 11 November, to which the hon. Member refers, the figures for family income supplement in the final table relating to a married couple with four children included some errors. The last three columns of this table for the relevant years should read:

Year FIS received in the year Net earnings Net income
£ £ £
1974–75 1,579.83 1,730.63
1975–76 1,814.71 2,048.63
1976–77 48.10 2,101.03 2,383.51
1997–78 83.40 2,358.11 2,727.51
1978–79 39.00 2,553.09 3,126.49
1979–80 20.00 2,811.67 3,663.67
1980–81 111.80 3,263.85 4,264.65
(provisional)

These figures for FIS should be treated with caution, as they are based on the assumption that weekly earnings are constant throughout the year. Any weekly variations within the same annual earnings figure would have affected the FIS entitlements.

Average earnings
Earnings Income tax NIC Net income
£ £ £ £
Single
1979–80 5,322 1,210 346 3767
1980–81 6,328 1,486 427 4415
Married
1979–80 5,322 1,015 346 3,962
1980–81 6,328 1,255 427 4,646
2 wage married

Earnings Income tax NIC Net income
£ £ £ £
Single
1979–80 5,322 635 266 4,421
1980–81 6,328 843 327 5,159
Married with 2 children
1979–80 5,322 1,015 346 4,378
1980–81 6,328 1,255 427 5,091
Married with 4 children
1979–80 5,322 1,015 346 4,794
1980–81 6,328 1,255 427 5,535

2 x average earnings
Earnings Income tax NIC Net income
£ £ £ £
Single
1979–80 10,644 2,806 456 7,382
1980–81 12,657 3,388 579 8,690
Married
1979–80 10,644 2,611 456 7,577
1980–81 12,657 3,154 579 8,924
2 wage married
1979–80 10,644 2,224 527 7,893
1980–81 12,657 2,741 654 9,262
Married with 2 children
1979–80 10,644 2,611 456 8,409
1980–81 12,657 3154 579 9813
5 x average earnings
Earnings Income tax NIC Net income
£ £ £ £
Single
1979–80 26,611 10,630 456 15,525
1980–81 31,642 13,035 579 18,028
Married
1979–80 26,611 10,250 456 15,904
1980–81 31,642 12,573 579 18,490
2 wage married
1979–80 26,611 8,174 597 17,840
1980–81 31,642 9,987 751 20,905
Married with 2 children
1979–80 26,611 10,250 456 16,320
1980–81 31,642 12,573 579 18,934
Married with 4 children
1979–80 26,611 10,250 456 16,736
1980–81 31,642 12,573 579 19,379