§ Mr. KirkwoodTo ask the Chancellor of the Exchequer if he will update to April the information on net earnings provided in his reply of 10 February 1987, to the hon. Member for Fulham (Mr. Carrington),Official Report, columns 177–8.
§ Mr. Norman LamontEstimates of the levels of earnings for the top 5 per cent. of earners are not published. The information in the table for April 1979 and April 1987 is based on estimates of these levels derived from distributions of earnings published in the relevant new earnings surveys. Information for 1988 is not available yet. Earnings levels are for full-time men or women as appropriate paid at adult rates with pay unaffected by absence. Taxpayers are assumed to have no reliefs or allowances other than the appropriate personal allowances.
Earnings after tax, national insurance contributions1 and child benefit at the level of earnings for the lop 5 per cent, of earners (£ per week) April 19794 April 1987 Single man At current prices 114.17 294.25 At constant April 1987 prices2 214.05 294.25 Married man3 At current prices 117.98 304.79 At constant April 1987 prices2 221.19 304.79 Married man3 with two children under 11 At current prices 125.98 319.29 At constant April 1987 prices2 236.18 319.29 Single woman At current prices 72.23 181.36 At current April 1987 prices2 135.41 181.36 418W
Range of total income in 1988–891 Number of units paying tax in 1988–89 Reductions in income tax with 1978–79 indexed compared regime £ (million) Amount (£ million)
Average per tax unit(£) Under 5,000 2.50 400 2120 5,000–10,000 7.00 2,490 2350 10,000–15,000 5.20 3,430 660 15,000–20,000 2.90 2,810 980 20,000–30,000 2.30 3,510 1,540 30,000–50,000 0.80 2,580 3,310 Over 50,000 0.25 4,780 20,760 Total 20.90 20,000 910 1 All information is in terms of tax units that is, married couples are counted as one and their incomes combined. 2 By reference to the estimated numbers who would be liable to pay tax under the indexed 1978–79 regime; this number is some 1,100,000 greater than the numbers paying tax in 1988–89, some 900,000 in the income range below £5,000 and 200,000; in the range £5,000 to £10,000. 1 At the contracted in rate
2 By reference to the retail prices index.
3 Assuming no wife's earnings.
4 Under the April 1979 tax/benefit regime.