HC Deb 13 July 1988 vol 137 c280W
Mr. Simon Hughes

To ask the Secretary of State for Social Services how many(a) earners, (b) families and (c) families with children, have effective marginal tax rates in excess of 40 per cent. taking into account income tax, national insurance contributions and the withdrawal of income-related benefits.

Mr. Portillo

On the basis of the assumptions set out in "Impact of The Reformed Structure of Income Related Benefits" October 1987 (copies of which are in the Library), 585,000 couples and single people below pension age where the principal earner is in full-time work are estimated to have combined income tax and benefit withdrawal rates in excess of 40 per cent. Of these, 525,000 have children. Among the couples, it is estimated that in broad terms there might be between 65,000 and 70,000 spouses who may have combined rates in excess of 40 per cent.

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