HC Deb 26 January 1981 vol 997 cc325-7W
Mr. Field

asked the Chancellor of the Exchequer if he will update the answer given to the hon. Member for Blaby (Mr. Lawson) on real take-home pay given on 30 January 1978, Official Report, Vol. 943, c. 27.

Mr. Peter Rees

[pursuant to his reply, 23 January 1981, c. 258]: The figures for a married man with two children aged under 11 are as follows:

Real weekly take-home at December 1977 prices Real weekly net income at December 1977 prices
£ £
December 1977 62.60 65.10
December 1978 64.60 70.10
December 1979 66.70 73.00
December 1980 68.50 74.10

Take-home pay is gross earnings less income tax and national insurance contributions; net income is take home pay plus child benefit. Average earnings have been taken from the April new earnings survey estimates of the average earnings of full time adult male workers in all occupations, manual and non-manual, updated by a centred three-monthly moving average of the seasonally adjusted monthly index of average earnings. The price index used is the General Index of Retail Prices-all items.

The most recent earnings estimate available on this basis relates to October 1980. The figure of real net income in that month excludes the increase in child benefit made in November 1980.

National Insurance contributions are at the not contracted out rates.

Mr. Field

asked the Chancellor of the Exchequer if he will update the answer on personal incomes given to the hon. Member for Norfolk, South (Mr. MacGregor) on 28 February 1978, Official Report, Vol. 945, c. 182.

Mr. Peter Rees

[pursuant to his reply, 23 January 1981, c. 258]: The figures for a married man with two children under age 11 are follows:

Real net income *at October 1977 prices
(1) Average earnings (2) Twice average earnings (3) Three times average earnings
£ per week £ per week £ per week
1977–78 65.00 119.30 158.00
1978–79 69.30 126.60 107.60
1979–80 72.60 134.60 158.30
1980–81 73.70 137.00 187.70
* Net income is gross earnings less income tax and national insurance contributions plus child benefit.

For each year except 1980–81, 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 employees, in all occupations (manual and non-manual) at the April of the beginning and end of each year. For 1977–78 this updates the estimate given in the previous answer. For 1980–81 the estimated level of earnings for October 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 workers taking account of the movements in a centred three-month moving average of the seasonally-adjusted whole economy index of average earnings.

The price index used is the general index of retail prices—all items.

National insurance contributions are at not contracted out rate.

Mr. Field

asked the Chancellor of the Exchequer if he will update the answer given to the hon. Member for Norfolk, South (Mr. MacGregor) on personal incomes on 7 February 1978, Official Report, Vol. 943, c. 503–4.

Mr. Peter Rees

[pursuant to his reply, 23 January 1981, c. 258]: The figures for a married man with two children aged under 11 are as follows:

Real Weekly take-home pay at December 1977 prices Real Weekly net income at December 1977 prices
£ £
December 1977 57.90 60.40
December 1978 59.90 65.40
December 1979 61.10 67.40
December 1980 62.40 67.90

Take-home pay is gross earnings less income tax and national insurance contributions, net income is take home pay plus child benefit. Average earnings have been taken from the April new earnings survey estimates of the average earnings of full-time adult male manual workers, updated by a centred three-monthly moving average of the seasonally-adjusted monthly index of average earnings. The price index used is the general index of retail prices—all items. National insurance contributions are at the not contracted out rate.

The October 1980 figures of real weekly net income (the most recent available on this basis) do not take account of the November 1980 uprating of child benefit.