HC Deb 05 March 1985 vol 74 cc442-3W
Mr. Ralph Howell

asked the Prime Minister what is the combined total of income tax and national insurance contribution a man with a wife and two children would pay per week if his income was £109 per week and his rent and rates were £15.60 and £7.35, respectively; if she will compare that with the combined total of child benefit, housing benefit and free school milk to which he would be entitled; and how much better off he would be if tax and national insurance thresholds were raised to £110 per week and all state benefits were eliminated for persons who earned more than £100 per week.

The Prime Minister

On the basis of the assumptions quoted, and with all other assumptions as in the November 1984 DHSS tax-benefit model tables, the combined total of income tax and national insurance contribution payable by a married man with gross earnings of £109 per week would be £24.31.

The combined total of child benefit, housing benefit and value of free school meals paid to such a man with two children aged four and six would be £24.05.

If income tax and national insurance contribution thresholds were raised and state benefits eliminated as outlined, a man in the particular circumstances quoted would be 20p a week better off. The example, however, has no general application: such thresholds and benefit limitations would produce varying gains or losses for people in different circumstances.

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