HC Deb 30 October 1986 vol 103 cc236-7W
Mrs. Beckett

asked the Secretary of State for Social Services if he will update to July 1986, at assumed July 1986 prices, the information on the value of benefits and allowances provided in the reply of 23 December 1982, Official Report, column 690, to the hon. Member for Eltham (Mr. Bottomley).

Mr. Major

The information is as follows:

(a) (b) (c) (d)
Value in April 1955 money terms Column (a) expressed at July 1986 prices1 Value in July 1986 money terms Column (c) as Index Column (b) = 100
In work (per week)3 1.11 10.06 14.20 141.2
Sick (per week)4 1.155 10.44 14.20 13.60
Standard rate taxpayer 1.906 17 21 14.20 82.5
1 Based on the movement in the General Index of Retail Prices.
2 Tax allowances available to all earners in 1955 comprised three elements; the personal allowance, national insurance relief and earned income relief, and all are included. Earned income relief is that for average earnings.
3 In respect of average earnings of £1087. Estimates of average earnings have been obtained by interpolation between October estimates, using the seasonally adjusted monthly index of average earnings (older series) published by the Department of Employment.
4 Includes dependency allowance for children.
5 Rates as at May 1955, when Sickness Benefit was increased. Real value at July 1986 (Column (b) of table) calculated from May 1955 base.
6 Child tax allowance for the family illustrated would have been £200 per annum in 1955. It has been assumed that the family's income subject to tax is more than £200 below the top of the standard rate tax band.