§ Mr. Ralph Howellasked 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 1981–82.
§ Mr. RidleyThe information is as follows:
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Year 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 per cent. 1949–50 308 100.0 83.1 1950–51 308 95.8 78.8
Year 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 Per cent. 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 1958–59 450 104.2 67.5 1959–60 450 103.6 63.9 1960–61 450 101.9 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 38.9 1977–78 1,804 109.7 46.6 1978–79 2,169 121.8 48.5 1979–80 2,633 127.9 50.1 1980–81 2,886 120.5 47.2 1981–82 3,000 112.3 44.9 * Index 1949–50=100. For the years up to and including 1969–70, average earnings are the average weekly earnings of male manual workers aged 21 and over in manufacturing and certain other industries in October of each year. For 1970–71 to 1975–76 the average earnings figures are the averages of
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1978–79 1979–80 1980–81 1981–82 75 per cent, average earnings Single person Gross Earnings 70.82 72.02 74.43 74.13 less income tax 15.96 15.17 16.44 16.95 less national insurance contribution 4.60 4.68 5.03 5.75 Net Earnings 50.26 52.17 52.96 51.43 (Indirect Taxes) (11.51) (12.64) (13.16) (13.44) Married couples Gross Earnings 70.82 72.02 74.43 74.13 less income tax 12.47 11.93 13.13 13.99 less national insurance contribution 4.60 4.68 5.03 5.75 Net Earnings 53.75 55.41 56.27 54.39 (Indirect Taxes) (13.97) (14.81) (13.66) (13.91) Married couple plus two children Gross Earnings 70.82 72.02 74.43 74.13 less income tax 11.20 11.93 13.13 13.99 less national insurance contribution 4.60 4.68 5.03 5.75 plus child benefit 5.14 6.91 6.34 6.57 Net Earnings 60.16 62.31 62.61 60.96 (Indirect Taxes) (13.94) (14.95) (14.74) (15.24) 100 per cent, average earnings Single person Gross Earnings 94.42 96.03 99.24 98.83 less income tax 23.75 22.38 23.88 24.36 less national insurance contribution 6.14 6.24 6.70 7.66 Net Earnings 64.53 67.40 68.66 66.81 the figures obtained from the new earnings survey of the average weekly earnings of full-time adult male manual employees, in the Aprils at the beginning and end of each financial year. From 1976–77 onwards, average earnings for financial years are based on averages of monthly estimates derived from the new earnings survey data for full-time adult male manual workers.
For years back to 1962–63 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 the publication "The Internal Purchasing Power of the Pound", issued by the Central Statistical Office, has been used.