HC Deb 13 April 1989 vol 150 cc621-2W
Sir Ian Gilmour

To ask the Chancellor of the Exchequer if he will update to 1989–90 the figures given in reply to the right hon. Member for Chesham and Amersham,Official Report, 1 December 1988, column 361, showing net incomes in 1979–80 and 1988–89 at (a) two-thirds average earnings, (b) average earnings, (c) twice average earnings and (d) three times average earnings, of single-wage married couples with two children, as percentages of the net incomes at the same earnings level of (i) single people and (ii) two-wage married couples, where the combined wage comes to the specified total and the husband earns two thirds and the wife one third.

Mr. Lawson

[holding answer 11 April 1989]: The information is in the table.

Net income of one earner married couple with 2 children as a percentage of net income of (a) single person and (b) 2 earner married couple with no children on same level of earnings
(a) As percentage of net income of single person
Multiples of average earnings1
Two thirds One Two Three
1979–80 121.9 115.3 108.0 106.7
1988–89 117.4 112.0 107.4 105.4
21989–90 116.2 111.3 107.0 104.9
(b) As percentage of net income of married couple with 2 earners and no children
Multiples of average earnings1
Two thirds One Two Three
1979–80 101.9 100.7 103.4 399.3
1988.89 99.8 100.1 102.6 399.7
21989–90 98.8 99.1 101.6 99.0

The amounts of income (£ per week) are as follows:

Net income after income tax, national insurance contributions and child benefit (£ per week)
Multiples of average earnings
1 Two-thirds One Two Three
Married couple with one earner and 2 children
1979–80 65.46 88.60 163.44 226.55
1988–89 145.99 201.89 379.14 531.60
21989.90 158.71 218.79 409.35 573.21
Single
1979–80 53.71 76.85 151.30 212.29
1988–89 124.33 180.23 353.18 505.64
21989–90 136.56 196.64 382.61 546.47
Married couple with 2 earners and no children
1979–80 64.24 88.02 158.14 3228.15
1988–89 146.27 201.62 369.43 533.41
21989.90 160.62 220.69 402.89 579.26
1 Average earnings are those for full time males working a full week at adult rates in all occupations. They are £109.30 per week in 1979–80 and assumed to be £254.10 in 1988–89, an increase of 8¾ per cent. on average earnings in 1987–88 and £273.10 in 1989–90, and increase of 7½ per cent on 1988–89 (the increases used by the Government Actuary in assessing the level of the National Insurance Fund as described in paragraph 3.02 of the Autumn Statement 1988).
2 Income tax rates and allowances used for 1989–90 are those proposed in the 1989 Budget. The calculations also assume post-October NIC rates; before October people earning more than £115 per week will pay an additional £3.01 per week.
3 Corrected from the reply of 1 December 1988.

Sir Ian Gilmour

To ask the Chancellor of the Exchequer if he will publish a table showing the net incomes in 1989–90, after taking into account income tax, national insurance contributions, child benefit and basic state retirement pensions, of a pensioner couple aged 65 to 74 years, a pensioner couple aged over 75 years and a single-earner couple with two children, assuming weekly gross incomes, excluding basic state retirement pension where appropriate, of £100, £150, £200, £250 and £300.

Mr. Lawson

[holding answer 11 April 1989]: Information is given in the tables. The income tax rates and allowances used for 1989–90 are those proposed in the Budget.

Net income after income tax, national insurance contributions and child benefit, 1989–90
Gross income1 £ per week Pensioner couples aged 65–74 Pensioner couples aged 75 or over
169.80 153.24 154.10
219.80 190.67 191.53
269.80 223.38 223.38
319.80 260.88 260.88
369.80 298.38 298.38
1 Including basic state retirement pension of £69.80 per week paid to the husband.
Gross income £ per week One earner married couple with two children1
100 104.54
150 137.54
200 170.54
250 203.54
300 236.54
1 Assuming post-October rates of NIC, and child benefit of £7.25 per week (per child).