HC Deb 12 March 1981 vol 1000 cc378-9W
Mr. Ralph Howell

asked the Chancellor of the Exchequer what was the tax break even point for a married couple with one child in each year since 1949–50, expressed at current and at constant prices and as a percentage of average manual earnings, including estimates for 1980–81.

Mr. Peter Rees

The figures for a married couple with one child are as follows:

Break Even Point at Current Prices Break Even Point at 1949–50 Prices* Break Even Point as a percentage of average earnings of Manual Worker
Year £ Per cent
1949–50 308 100.0 83.1
1950–51 308 95.8 78.8
1951–52 333 95.8 77.2
1952–53 388 106.2 83.6
1953–54 388 104.5 78.9
1954–55 388 102.3 73.0
1955–56 448 113.6 77.3
1956–57 449 109.7 72.6
1957–58 449 106.2 68.6
1958–59 450 104.9 67.5
1959–60 450 104.9 63.9
1960–61 450 103.2 59.6
1961–62 460 101.3 57.7
1962–63 460 97.7 55.8
1963–64 588 123.1 67.5
1964–65 588 118.5 62.4
1965–66 585 112.0 57.4
1966–67 585 108.1 55.4
1967–68 585 105.8 52.6
1968–69 585 100.0 48.9
1969–70 630 102.6 48.8
1970–71 746 113.3 51.1
1971–72 797 110.7 49.3
1972–73 971 126.0 52.7
1973–74 975 114.6 45.9
1974–75 1,105 110.1 42.8
1975–76 1,195 95.5 38.0
1976–77 1,385 96.1 39.0
1977–78 1,804 109.7 45.6
1978–79 2,169 121.8 48.0
1979–80 2,633 127.9 49.5
1980–81 2,886 120.1 45.2
* Index 1949–50 = 100.

For the years up to and including 1969–70 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. 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.

For years back to 1957–58 the prices index used is the general index of retail prices—all items—while for earlier years an index derived from the long-term index of prices of consumer goods and services which appears in table D of the publication "The Internal Purchasing power of the Pound" issued by the Central Statistical Office has been used.