§ Mr. Ralph HowellTo ask the Chancellor of the Exchequer if he will state the average increase in net weekly spending power of a man with two children of seven and 11 years and a non-working wife for each extra £1 he earns if he increases his pay from(a) £100 to £110, (b) £110 to £120, (c) £120 to £130, (d) £130 to £140 and (e) £140 to £150, assuming he pays average rent and rates.
§ Mr. Norman LamontThe figures are set out in the table. The man is assumed not to be contracted out of SERPs, to claim family credit and to claim only the married man's allowance. The figures take account of the Budget changes in income tax and of the new benefit system from April 1988. The family would not be entitled to rent or rate rebates.
Increase in net spending power per £1 of extra earnings for married man with children aged 7 and 11, paying average rent and rates Range of increase in weekly income Extra net spending power per £1 of extra earnings (a) From £100 to £110 0.14 (b) From £110 to £120 0.20 (c) From £120 to £130 0.20 (d) From £130 to £140 0.20 (e) From £140 to £150 0.20