§ Mr. KirkwoodTo ask the Chancellor of the Exchequer if he will update to April the information on net earnings provided in his reply to the then hon. Member for Fulham, on 10 February 1987,Official Report, columns 177-78.
§ Mr. Lilley[holding answer 29 March 1990]: 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 those levels derived from published figures in the relevant new earnings surveys. The latest estimates available are for April 1989. 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.
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Earnings after Tax, National Insurance Contributions1 and Child Benefit (£ per week) April 19794 April 1989 Single Man At current prices 114.20 369.20 At constant April 1989 prices2 240.30 369.20 Married Man3 At current prices 118.00 381.50 At constant April 1989 prices2 248.30 381.50 income tax base, or (ii) the change to independent taxation from 1989–90 to 1990–91. Information for other years could be provided only at disproportionate cost.
For the purposes of these calculations, the indexed regimes of 1978–79 and later years are applied directly to the income tax base of 1990–91. In practice, retention of these regimes, indexed as appropriate, would have led to changes in the income base.
April 19794 April 1989 Married Man3 with two children under 11 At current prices 126.00 396.00 At constant April 1989 prices2 265.20 396.00 Single Woman At current prices 72.20 234.10 At constant April 1989 prices2 152.00 234.10 1At the contracted in rate for April 1989. 2By reference to the retail price index. 3Assuming no wife's earnings. 4Under the Finance Act 1979 tax regime.
§ Mr. KirkwoodTo ask the Chancellor of the Exchequer if he will update to 1990–91 the information on real net earnings provided in his reply to the hon. Member for Birkenhead (Mr. Field) on 10 April 1986,Official Report, columns 193-94.
§ Mr. Lilley[holding answer 29 March 1990]: Information is given in the tables:
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Income Tax and Income Tax and NIC as percentages of gross earnings Multiples of average male earnings1 ⅔ 1 2 5 10 Single 1956–57 Tax 10.4 16.6 24.8 40.5 55.2
Multiples of average male earnings1 ⅔ 1 2 5 10 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 1990–912 Tax 17.9 20.2 26.4 34.5 37.3 Tax + NIC 25.3 28.2 31.0 36.4 38.2 Married Man 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 1990–912 Tax 13.8 17.5 24.2 33.7 36.8 Tax + NIC 21.2 25.5 28.8 35.5 37.8
Changes in real net earnings after Income Tax and NIC (1956–57 = 100) Multiples of average male earnings1 ⅔ 1 2 5 10 Single 1978–79 124.9 125.3 132.8 120.1 108.3 1990–912 171.9 175.3 184.5 213.3 274.6 Married Man
Real change in tax allowances since 1978–79 Change in tax liability 1990–91 Single people Husbands Wives Individual's income Total Average per taxpayer1 Total Average per taxpayer1 Total Average per taxpayer1 £ per annum £ million £ per annum £ million £ per annum £ million £ per annum Less than £5,000 270 120 30 130 170 90 £5,000–10,000 640 140 490 200 270 140 £10,000–15,000 390 150 760 250 110 140 £15,000–20,000 150 140 550 230 50 140 £20,000–25,000 60 150 280 230 20 130 £25,000–30,000 40 180 160 270 10 230 £30,000–50,000 40 220 270 350 10 220 Over £50,000 10 230 110 360 10 220 TOTAL 1,600 140 2,650 240 650 120 1 Individual taxpayers liable to tax when personal allowances are reduced to their indexed 1978–79 levels.
§ Mr. Frank FieldTo ask the Chancellor of the Exchequer what is the number of married women in the current tax year claiming the transferable element of their husband's personal tax allowance.
§ Mr. Lilley[holding answer 30 March 1990]: It is estimated that in 1989–90 approximately 500,000 married women, over 10 per cent. of all married women with income greater than the wife's earned income allowance, will receive part or all of their husband's married man's allowance. The estimate is based on a projection of the 1987–88 survey of personal incomes and is provisional.