§ Mr. SquireTo ask the Secretary of State for Social Services if he will publish figures for the numbers of lower-paid families with and without children, whose marginal tax rates including benefit withdrawal will be(a) 90 to 100 per cent., (b) 80 to 90 per cent., (c) 70 to 80 per cent., (d) 60 to 70 per cent., (e) 50 to 60 per cent, and (f) 40 to 50 per cent, after the implementation of the Social Security Act 1986 in April 1988, assuming that in 1988–89 personal tax allowances are raised in my line with inflation and the basic rate of tax is reduced to 25 per cent.
§ Mr. ScottThe main assumptions underlying the figures given in the table are, with the exception of a 25 per244W cent. basic rate of tax, the same as those mentioned in reply to my hon. Friend on 19 November. Since the estimates assume that employees' national insurance contributions are paid at 9 per cent., the figures include some overstatement and can indicate only broad orders of magnitude:
Total marginal rate of deduction (per cent.) per £1 of extra gross earnings Thousands—Great Britain Families with children Couples and single people without children Above 90 60 10 80 but less than 90 350 10 70 but less than 80 80 20 60 but less than 70 1 0 50 but less than 60 0 0 40 but less than 50 2 2 Notes:
1.Main assumptions as in "Impact of the Reformed Structure of Income Related Benefits" published 27 October, except that standard of tax rate is assumed to be 25 per cent.
2.Heads of tax-units only.
1Means less than 5,000.
2Means not readily available.