HC Deb 05 December 1988 vol 143 cc59-60W
Sir Ian Gilmour

To ask the Chancellor of the Exchequer if he will give figures showing the net incomes, including family credit, of a married man with two children aged four and six years, where the father's weekly earnings are £100, £150, £200, £250, £300, £400, £500, £750, £1,000 and £2,000, assuming no mortgage or superannuation tax reliefs and in each of the following circumstances(a) existing system, 1988–89, (b) child benefit abolished, £500 million of the savings on child benefit put into family credit and the rest used to finance a further cut in the standard rate of income tax, (c) child benefit abolished, £1,000 million of the savings put into family credit and the rest used to finance a further cut in the standard rate of income tax, and (d) ditto, but with all the savings from child benefit used to finance a further cut in the standard rate of income tax.

Mr. Lawson

[holding answer 30 November 1988]: The table below shows the net income of a married man with two children aged four and six at the various levels of gross earnings specified. The first column relates to the tax and benefit system in force in 1988–89; the second column reflects the position which would have arisen in 1988–89 if child benefit had been abolished and all of the savings had been used to finance a cut in the basic rate of tax.

I regret that it is not possible to provide comparable figures under the other two options requested since insufficient information has been provided about the way in which the family credit system would be changed.

Net weekly income1 (£per week)
Gross earnings £ per week Current tax and benefit regime Child benefit abolished and basic rate of tax reduced
100 121.02 118.20
150 133.19 120.54
200 166.19 154.84
250 199.19 189.14
300 232.19 223.44
400 306.74 300.59
500 374.22 369.37
750 524.22 519.37
1,000 674.22 669.37
2,000 1,274.22 1,269.37
1 Net weekly income equals gross earnings less income tax less national insurance contributions plus child benefit plus family credit plus housing benefits based on the assumption that the family are local authority tenants paying average rent and rates.