HC Deb 15 May 1989 vol 153 cc13-5W
Mr. Kirkwood

To ask the Chancellor of the Exchequer if he will update to April 1989 the information on net earnings provided in his reply of 10 February 1987 to the then hon. Member for Fulham,Official Report, columns 177–78.

Mr. Norman Lamont

Estimates of the levels of earnings at the top 5 per cent. point of the earnings distribution are not published. The information in the table is based on estimates of these levels derived from published figures in the relevant new earnings surveys. Results of the survey in April 1989 are not available yet so estimates for April 1988 are given in the table. Earnings levels are for 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 (£ per week)
April 19794 April 1988
Single man
At current prices 114.17 333.26
At constant April 1988 prices2 222.45 333.26
Married man3
At current prices 117.98 344.72
At constant April 1988 prices2 229.88 344.72
Married man3 with two children under 11
At current prices 125.98 359.22
At constant April 1988 prices2 245.46 359.22
Single woman
At current prices 72.23 209.20
At constant April 1988 prices 140.74 209.20
1 At the contracted in rate.
2 By reference to the retail price index.
3 Assuming no wife's earnings.
4 Under the Finance Act 1979 tax regime.

Mr. Kirk wood

To ask the Chancellor of the Exchequer if he will update to 1989–90 the information on real net earnings provided in his reply of 10 April 1986 to the hon. Member for Birkenhead (Mr. Field)Official Report, columns 193–94.

Mr. Norman Lamont

Information is given in the tables:

Multiples of average earnings1
⅔ 1 2 5 10
Income tax and Income tax and NIC as percentages of gross earnings
Single
1956–57
Tax 10.4 16.6 24.8 40.5 55.2
Tax+NIC 14.0 18.9 26.0 41.0 55.4
1978–79
Tax 21.0 25.0 29.5 50.5 66.6
Tax+NIC 27.5 31.5 33.7 52.2 67.5
1989–902
Tax 17.6 20.1 25.1 34.1 37.0
Tax+NIC 25.0 28.0 29.9 36.0 38.0
Married
1956–57
Tax 5.1 11.2 22.0 38.9 54.2
Tax+NIC 8.6 13.5 23.1 39.4 54.4
1978–79
Tax 5.4 21.3 27.2 48.8 65.7
Tax+NIC 21.9 27.8 31.4 50.5 66.5
1989–902
Tax 13.4 17.3 22.9 33.2 36.6
Tax+NIC 20.8 25.2 27.7 35.1 37.5
Changes in real net earnings after Income Tax and NIC (1956–57=100)
Single
1978–79 124.9 125.3 132.8 120.1 108.3
1989–902 168.9 172.0 183.4 210.1 269.6
Married
1978–79 126.8 123.9 132.4 121.1 109.0
1989.902 168.0 167.7 182.3 207.4 265.6
1 Average earnings are those for full time males working a full week at adult rates in all occupations. They are £92.80 per week in 1978–79 and assumed to be £273.10 in 1989–90, an increase of 8¾ per cent, on average earnings in 1988–89 and an 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.