§ Mr. Fieldasked the Chancellor of the Exchequer if he will estimate the number of taxpayers and the numbers earning sums between the lower exemption and the upper ceiling of the national insurance of graduated contributions and for the national insurance scheme for each year since graduated contributions became payable; and if he will present the latter data as a percentage of the former.
§ Mr. Ridley[pursuant to his reply, 17 March 1983, c. 239]: The multiples of average earnings are shown in the following table. The rows of the table refer to the cases where tax plus national insurance contributions (NIC) less child benefit (where appropriate) is expressed (a) as a proportion of gross earnings; and (b) at constant (1978–79) prices.
Single Married Married with two children under 11 (a) 1982–83 2.6 2.8 2.9 1983–84 2.1 2.2 2.4 (b) 1982–83 3.5 3.7 3.8 1983–84 3.2 3.3 3.3 The calculations assume that the taxpayer has no allowances and reliefs other than the appropriate personal
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1978–79 Prices and Percentage of Gross Earnings 1982–83 1983–84 Single Married Married + 2 Single Married Married + 2 75 per cent. of average earnings Gross earnings 75.38 75.38 75.38 76.08 76.08 76.08 Income Tax 17.01 13.85 13.85 16.76 13.33 13.33 Percentage (22.6) (18.4) (18.4) (22.0) (17.5) (17.5) National Insurance contributions 6.60 6.60 6.60 6.85 6.85 6.85 Percentage (8.8) (8.8) (8.8) (9.0) (9.0) (9.0) Child benefit — — 6.80 — — 7.16 Percentage — — (9.0) — — (9.4) Net earnings 51.77 54.93 61.73 52.47 55.90 63.06 Percentage (68.7) (72.9) (81.9) (69.0) (73.5) (82.9) Indirect taxes 13.24 16.08 15.07 13.24 16.03 15.09 Percentage (17.6) (21.3) (20.0) (17.4) (21.1) (19.8) 100 per cent. of average earnings Gross earnings 100.50 100.50 100.50 101.45 101.45 101.45 Income Tax 24.54 21.39 21.39 24.36 20.94 20.94 Percentage (24.4) (21.3) (21.3) (24.0) (20.6) (20.6) National Insurance contributions 8.80 8.80 8.80 9.13 9.13 9.13 Percentage (8.8) (8.8) (8.8) (9.0) (9.0) (9.0) Child benefit — — 6.80 — — 7.16 Percentage — — (6.8) — — (7.1) Net earnings 67.16 70.31 77.11 67.96 71.38 78.54 Percentage (66.8) (70.0) (76.7) (67.0) (70.4) (77.4) Indirect taxes 16.69 18.94 18.08 16.67 18.90 18.12 Percentage (16.6) (18.8) (18.0) (16.4) (18.6) (17.9) 200 per cent. of average earnings Gross earnings 201.01 201.01 201.01 202.89 202.89 202.89 Income Tax 57.73 53.43 53.43 56.54 51.97 51.97 Percentage (28.7) (26.6) (26.6) (27.9) (25.6) (25.6) National Insurance contributions 11.96 11.96 11.96 12.45 12.45 12.45 allowances and that he or she is not contracted out of the state (earnings related) pension scheme. In the case of married couples it has been assumed that the husband is the sole partner. Average earnings for full-time males (all occupations) have been taken at £161.80 per week in 1982–83 and £172.30 per week in 1983–84. The increases in income tax and NIC below the earnings levels shown do not mean that those concerned are worse off than in 1978–79. Gross earnings have risen by more than prices and the real net earnings—after income tax and NIC—of those in employment whose earnings have increased in line with the national average have increased since 1978–79.