§ Mr. George Cunninghamasked the Chancellor of the Exchequer (1) if he will revise the figures given in both the Appendix 5 of the Treasury and Civil Service Committee report, Session 1981–82 on the Government's economic policy, autumn review and the updated figures given in the answer to the hon. Member for Oldham, West (Mr. Meacher) on 25 October 1982 for those on 75 per cent., 100 per cent., 200 per cent. and 500 per cent. of national average earnings for single, married and married plus two children families, including data on gross earnings, income tax, national insurance contributions, child benefit, net earnings and indirect taxes and net earnings net of indirect taxes in each case on the basis of the most recently available price base and showing the years 1978–79 to 1982–83 and as far back to 1945 as figures will allow and including an estimate for 1983–84 on the basis of announced policy changes and the conventional assumptions incorporated in the latest forecast required under the Industry Act 1975;
(2) if he will express total tax payments—income tax, national insurance contributions and indirect taxes, less child benefit where applicable—for single people, married couples and married couples plus two children families at 75 per cent., 100 per cent., 200 per cent. and 500 per cent. of national average earnings in each case as a percentage of their gross weekly earnings for each year until 1982–83 as far back to 1945 as data allows and including an estimate for 1983–84 on the basis of announced policy changes and the conventional assumptions incorporated in the latest forecast required under the Industry Act 1975.
§ Mr. Ridley[pursuant to his reply, 18 November 1982, c. 231-2]: Figures for 1982–83 and 1983–84 are given in the following tables. They take account of the Government Actuary's latest assumptions on earnings growth. The figures for 1983–84 assume that income tax allowances and specific duties are increased as shown in part V of the autumn statement.
The figures are given both as a percentage of gross incomes and in 1978–79 prices for ease of comparison with those already given for the years 1978–79 to 1981–82 in answer to the Treasury and Civil Service Committee (Fifth Report from the Treasury and Civil Service Committee, session 1980–81, HC 232-II, appendix 6, pp. 120–23; First report from the Treasury and Civil Service Committee, HC 28, session 1981–82, appendix 5, pp. 35–36) and to the hon. Member for Oldham, West (Mr. Meacher) on 25 October 1982.—[Vol. 29, c. 256–58.]
Comparable figures for earlier years cannot be provided except at disproportionate cost.
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1978–79 prices and percentage of gross earnings 1982–83 1983–84 Single Married Married plus two children Single Married Married Plus two children 75 per cent. of average earnings Gross earnings 75.53 75.53 75.53 76.60 76.60 76.60 Income Tax 17.04 13.88 13.88 17.29 14.10 14.10 (per cent.) (22.6) (18.4) (18.4) (22.6) (18.4) (18.4) National Insurance Contributions 6.61 6.61 6.61 6.89 6.89 6.89 (per cent.) (8.8) (8.8) (8.8) (9.0) (9.0) (9.0) Child Benefit — — 6.81 — — 7.07 (per cent.) — — (9.0) — — (9.2) Net Earnings 51.89 55.04 61.85 52.43 55.60 62.67 (per cent.) (68.6) (72.9) (81.9) (68.4) (72.6) (81.8) Indirect Taxes (13.50) (14.07) (15.37) (13.73) (14.31) (15.66) (per cent.) (17.9) (18.6) (20.4) (17.9) (18.7) (20.4) 100 per cent. of average earnings Gross earnings 100.71 100.71 100.71 102.14 102.14 102.14 Income Tax 24.59 21.43 21.43 24.95 21.77 21.77 (per cent.) (24.4) (21.3) (21.3) (24.4) (21.3) (21.3) National Insurance Contributions 8.81 8.81 8.81 9.19 9.19 9.19 (per cent.) (8.8) (8.8) (8.8) (9.0) (9.0) (9.0) Child Benefit — — 6.81 — — 7.07 (per cent.) — — (6.8) — — (6.9) Net Earnings 67.30 70.47 77.27 68.00 71.18 78.24 (per cent.) (66.8) (70.0) (76.7) (66.6) (69.7) (76.6) Indirect Taxes (17.08) (17.69) (18.50) (17.36) (17.99) (18.83) (per cent.) (17.0) (17.6) (18.4) (17.0) (17.6) (18.4) 200 per cent. of average earnings Gross earnings 201.42 201.42 201.42 204.28 204.28 204.28 Income Tax 57.85 53.54 53.54 58.70 54.37 54.37 (per cent.) (28.7) (26.6) (26.6) (28.7) (26.6) (26.6) National Insurance Contributions 11.98 11.98 11.98 12.54 12.54 12.54 (per cent.) (6.0) (6.0) (6.0) (6.1) (6.1) (6.1) Child Benefit — — 6.81 — — 7.07 (per cent.) — — (3.4) — — (3.5) Net Earnings 131.59 135.90 142.71 133.04 137.37 144.44 (per cent.) (65.3) (67.5) (70.8) (65.1) (67.3) (70.7) 500 per cent. of average earnings Gross earnings 503.55 503.55 503.55 510.70 510.70 510.70 Income Tax 221.10 214.78 214.78 224.17 217.81 217.81 (per cent.) (43.9) (42.7) (42.7) (43.9) (42.7) (42.7) National Insurance Contributions 11.98 11.98 11.98 12.54 12.54 12.54 (per cent.) (2.4) (2.4) (2.4) (2.5) (2.5) (2.5) Child Benefit — — 6.81 — — 7.07 (per cent.) — — (1.4) — — (1.4) Net Earnings 270.47 276.79 283.60 273.99 280.35 287.41 (per cent.) (53.7) (55.0) (56.3) (53.6) (54.9) (56.3) Notes:
1. Average earnings are defined here as the average gross earnings of full-time men, all occupations, all industries and services, excluding those whose pay was affected by absence, monthly average for the financial year. It is assumed that earnings rise by 9 per cent. between 1981–82 and 1982–83 and 6½ per cent. between 1982–83 and 1983–84.
2. Figures in £ per week are converted to 1978–79 prices using the retail prices index (RPI) (financial year average). For illustration, the index is assumed to be 7 per cent. higher on average in 1982–83 than in 1981–82, and 5 per cent. higher in 1983–84 than in 1982–83. Percentages are in terms of gross earnings.
3. Income tax payments are calculated on the basis that the households have only personal allowances. For the married couples it is assumed that the wife does not work. National Insurance contributions are calculated at the contracted-in rate.
4. Child benefit is calculated as an average rate for the financial year. For illustration, it is assumed that the benefit is uprated by 5 per cent. in November 1983. The actual amount of the uprating will as usual be announced at Budget time.
5. Indirect taxes are estimated from Family Expenditure Survey (FES) data. Such estimates, however, are not reliable at income levels above 150 per cent. of average earnings. Consequently figures are not shown for the households at 200 and 500 per cent.
6. Net earnings are calculated as gross earnings less income tax and national insurance plus child benefit where appropriate. Indirect taxes should not be deducted, since the figures are deflated by the RPI, which already takes account of changes in indirect taxes.