HC Deb 21 May 1990 vol 173 cc71-2W
11. Mr. Eastham

To ask the Secretary of State for Social Security how many taxpayers face a marginal deduction rate of 70 per cent. or more as a result of the interaction of the tax and benefit system.

Mr. Newton

There are around 320,000 tax units paying income tax with a marginal deduction rate of over 70 per cent. The social security reforms and subsequent changes to national insurance have effectively eliminated the risk of facing combined deductions for taxes and benefits which exceed each extra pound earned.

17. Mr. McAvoy

To ask the Secretary of State for Social Security what is his latest estimate of the number of people who lose 90p or more in every pound of increased earnings as a result of the interaction of the tax and benefit system.

28. Mr. Eadie

To ask the Secretary of State for Social Security what is his latest estimate of the number of people who lose 90p or more in every pound of increased earnings as a result of the interaction of the tax and benefit system.

Mr. Newton

Before the reforms 70,000 families had marginal deduction rates over 100 per cent., and 130,000 had rates over 90 per cent. Now nobody has a rate of 100 per cent. or more, and the number over 90 per cent. has fallen to 40,000.

23. Mr. Bidwell

To ask the Secretary of State for Social Security what is his latest estimate of the number of people who lose 90p or more in every pound of increased earnings as a result of the interaction of the tax and benefit system.

Mrs. Gillian Shephard

It is estimated that there are about 40,000 benefit units where the head is in full-time employment and faces a combined marginal tax-benefit withdrawal rate of 90 per cent. or more.

60. Mr. Alan W. Williams

To ask the Secretary of State for Social Security how many taxpayers face a marginal deduction rate of 70 per cent. or more as a result of the interaction of the tax and benefit system.

Mrs. Gillian Shephard

It is estimated that there are about 320,000 benefit units where the head is in full-time employment, pays income tax and faces a combined marginal tax-benefit withdrawal rate of 70 per cent. or more.