§ Ms. RichardsonTo ask the Secretary of State for Social Security if he will estimate how many people will face marginal tax rates above 50 per cent. as a result of the introduction of the council tax; and if he will break this down into those with families and children and those without.
§ Mr. BurtIt is not possible to provide estimates of marginal deduction rates for 1993–94 as council tax levels have yet to be set. However, an estimated 395,000 heads of benefit units working more than 24 hours a week and receiving income-related benefits, would face marginal deduction rates of above 50 per cent. had the council tax replaced the community charge in 1991–92. Of this total, 325,000 would head families with children.
Source: Modelled using data drawn from the 1987 and 1988 Family Expenditure Surveys at 1991–92 prices and benefit levels: estimates not comparable with those published in the Departmental Report (Cm 1914), which are based on Family Expenditure Surveys for 1986, 1987 and 1988.