§ Mr. Meacherasked the Chancellor of the Exchequer if, in accordance with the note by the Treasury at appendix 5 of the Treasury and Civil Service Committee report, Session 1981–82, on "the Government's Economic Policy: Autumn Review", he will update the figures for 1982–83 and also for 1983–84 on the basis of announced changes, 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 in each case.
§ Mr. Brittan[pursuant to his reply,19 October 1982, c. 84]: Illustrative figures for 1982–83 are given as follows, together with revised figures for 1981–82 which take account of the latest information from the new earnings survey. Comparable figures for 1983–84 cannot be given.
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£ per week at 1978–79 prices 1981–82 1982–83 Single Married Married + 2children Single Married Married + 2children 75 per cent. average earnings Gross earnings 74.13 74.13 74.13 75.04 75.04 75.04 less income tax 16.95 13.99 13.99 16.87 13.69 13.69 less NICs 5.75 5.75 5.75 6.57 6.57 6.57 plus child benefit — — 6.57 — — 6.84 Net earnings 51.43 54.39 60.95 51.61 54.79 61.62 indirect taxes 100 per cent. average earnings (13.44) (13.91) (15.24) (13.44) (14.02) (15.34) Gross earnings 98.83 98.83 98.83 100.06 100.06 100.06 less income tax 24.36 21.41 21.41 24.37 21.19 21.19 less NICs 7.66 7.66 7.66 8.75 8.75 8.75 plus child benefit — — 6.57 — — 6.84 Net earnings 66.81 69.77 76.34 66.93 70.11 76.95 indirect taxes 200 per cent. average earnings (17.03) (17.53) (18.38) (17.00) (17.61) (18.45) Gross earnings 197.67 197.67 197.67 200.11 200.11 200.11 less income tax 58.13 53.69 53.69 57.13 52.89 52.89 less NICs 10.32 10.32 10.32 12.04 12.04 12.04 plus child benefit — — 6.57 — — 6.84 Net earnings 129.22 133.65 140.23 130.95 135.18 142.02 500 per cent. average earnings Gross earnings 494.17 494.17 494.17 500.28 500.28 500.28 less income tax 220.29 214.37 214.37 218.77 212.41 212.41 less NICs 10.32 10.32 10.32 12.04 12.04 12.04 plus child benefit — — 6.57 — — 6.84 Net earnings 263.56 269.48 276.04 269.48 275.83 282.67 Notes to Tables: 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. For 1982–83 it is assumed for illustration that earnings rise by about 71/2 per cent. above their 1981–82 level. 2. All figures are converted to 1978–79 prices using the retail prices index (RPI) (financial year average). The index is assumed for illustration to be 6½ per cent. higher on average in 1982–83 than in 1981–82. 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. 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 shouldnotbe deducted, since the figures are deflated by the RPI, which already takes account of changes in indirect taxes.