HC Deb 05 April 1990 vol 170 c790W
Mr. Squire

To ask the Secretary of State for Social Security if he will publish a table showing the numbers of lower-paid families with and without children, whose marginal tax rates including benefit withdrawal will be(a) 90 to 100 per cent., (b) 80 to 90 per cent., (c) 70 to 80 per cent., (d) 60 to 70 per cent., (e) 50 to 60 per cent. and (f) 40 to 50 per cent., taking into account the tax changes for 1990–91.

Mrs. Gillian Shephard

[holding answer 26 March 1990]: The information requested is set out in the table:

Marginal deduction rates—working heads of tax units Numbers with marginal deduction rates at or above certain levels 1990–91
Thousands
100 per cent. and over 0
90 per cent. and over 40
80 per cent. and over 220
70 per cent. and over 410
60 per cent. and over 420
50 per cent. and over 420
40 per cent. and over 550

Notes:

  1. 1. These estimates are not comparable with the figures in Table 14.19 of the Public Expenditure White Paper because of sampling and grossing factors, the incorporation of Community Charge Benefit, independent taxation, and the effects of earnings growth.
  2. 2. Marginal Deduction Rates shown are for heads of benefit units in receipt of Family Credit, rent rebate or Community Charge Benefit when at least one partner works 24 hours or more a week.
  3. 3. Estimates are based on 1985, 1986 and 1987 Family Expenditure Surveys uprated to 1990–91 levels.
  4. 4. Estimates are rounded to nearest 10,000.
  5. 5. Estimates incorporate the Department of the Environment guideline Community Charges announced in January.