§ Mr. Austin Mitchellasked the Chancellor of the Exchequer, further to his reply dated 8 March, concerning wife' earned income allowance, Official Report, c. 338,
60W(2) further to the answer of 7 February, Official Report, c. 277–278, concerning wife's earnings, whether the estimated cost of the earnings election is net of the alternative of the wife's earned income allowance; and whether he will publish a table in the Official Report showing the number of elections in each range of income and the net cost to the Exchequer.
§ Mr. RidleyThe cost of the wife's earnings election is a net figure representing the extra cost of allowing an electing couple to have two single person's allowances and two sets of rate bands as against the alternative of a married man's and wife's earned income allowance, but only one set of rate bands. The figure of £130 million in a full year at 1983–84 income levels quoted in the previous reply was on the basis of allowances and thresholds increased, from their 1982–83 levels, in line with the statutory indexation provisions. Following the Budget proposals, it is estimated that the cost will be slightly lower, £110 million. Information on the number of elections and cost, ranged by the couple's joint total income, is as follows for both these figures, and also under the alternative tax system specified in the hon. Member's second question.
whether he will (i) provide the same information for those wives who pay tax and (ii) give details of wives' incomes by income range excluding the husband's income.
§ Mr. RidleyThe available information is at the income levels of 1982–83, as in the previous reply. The estimates given in the following tables show the numbers (i) of taxpaying wives ranged by the couples' joint taxable income and (ii) of wives ranged by wife's income. Wife's income includes those forms of income against which the wife's earned income allowance can be set; that is, employment income, profits, occupational pension or national insurance pension received by virtue of her own contributions.
61W
Range of joint taxable income, 1982–83 (lower limit) (i) Number of wives paying tax £ Thousands 0 170 1,000 190 2,000 280 3,000 390 4,000 510
Range of joint taxable income, 1982–83 (lower limit) (i) Number of wives paying tax £ Thousands 5,000 540 6,000 460 7,000 370 8,000 340 9,000 220 10,000 280 12,000 220 15,000 140 20,000 60 30,000 30 4,200
Range of wife's income, 1982–83 (lower limit) (ii) Number of wives with earned income on Inland Revenue records £ Thousands 0 1,200 1,000 1,570 2,000 1,140 3,000 850 4,000 690 5,000 440 6,000 240 7,000 150 8,000 100 9,000 50 10,000 40 12,500 10 15,000 10 20,000 10 6,500