§ Mr. Frank FieldTo ask the Secretary of State for Social Services if he will update the information on low income workers contained in his answer to the hon. Member for Birkenhead of 15 January 1986,Official Report, columns 593–96.
§ Mr. ScottEstimates, which exclude families and single people paying higher rates of income tax, are shown in the table. Although the main assumptions used are similar to those used in the tables on the "Impact of the Reformed Structure of Income-Related Benefits" published at the time of the uprating statement on 27 October, these marginal rates assume that employees' national insurance contributions are paid at a rate of 9 per cent. Insofar as some employees' contributions are at the lower rates of 5 per cent, and 7 per cent., the estimates are too high. They therefore provide only broad orders of magnitude.
Total marginal rate of deduction (per cent.) per £1 of gross earnings Hypothetical "current scheme" 1988–89 Reformed system 1988–89 50p but less than 60p 50,000 0 60p but less than 70p 90,000 1— 70p but less than 80p 0 95,000 80p but less than 90p 160,000 380,000 90p but less than 100p 45,000 70,000 100p and over 70,000 0 1— Means less than 5,000. Notes:
Heads of tax-units only.
Figures are for Great Britain.