HC Deb 05 May 1993 vol 224 cc126-9W
Ms Corston

To ask the Chancellor of the Exchequer what was the percentage share, and average amount per equivalent adult at 1990 prices, of disposable income by quintile groups of households for(a) households with children, (b) other households and (c) all households, for 1979, 1987 and 1990.

Mr. Nelson

The information is not available in the precise form requested because the equivalence scale used is based on households rather than adults. In addition the figures are only available at current prices.

Bottom 2nd 3rd 4th Top All
All households
Average 1,180 1,677 2,231 2,918 4,487 2,498
Percentage share of total income 9 13 18 23 36 100
1987
Households with children
Average 2,225 3,329 4,547 6,184 10,763 5,059
Percentage share of total income 3 4 7 8 9 31
Other households
Average 2,297 3,253 4,538 6,273 11,473 4,548
Percentage share of total income 6 8 9 14 32 69
All households
Average 2,273 5,372 7,446 10,228 18,544 9,063
Percentage share of total income 8 12 16 23 41 100
1990
Households with children
Average 2,632 4,237 6,062 8,766 15,627 6,976
Percentage share of total income 2 4 7 8 9 30
Other households
Average 2,688 4,085 6,110 8,698 16,752 7,934
Percentage share of total income 5 7 9 15 33 70
All households
Average 2,671 4,134 6,089 8,721 16,493 7,621
Percentage share of total income 7 11 16 23 43 100

Percentages are rounded independently and may not sum to row or column totals.

Households with children have fallen as a proportion of the sample from 39 per cent. in 1979 to 33 per cent. in 1990. This is the main reason that their share of income has fallen from 37 per cent. in 1979 to 30 per cent. in 1990. The variation in the shares of income between household types by quintile group is mainly a reflection of the different composition of the quintile groups.

These figures are not strictly comparable over time because of changes in classification of both income and taxation and because of changes in the family expenditure survey.

Ms Corston

To ask the Chancellor of the Exchequer what was the total value of equivalised disposable income, at 1990 prices, for all households for the years 1977 to 1990, on the basis given inEconomic Trends for January 1993, page 187.

Mr. Nelson

The information is not available in the precise form requested. The total value of equivalised disposable income for households in the sample at current prices can be obtained by multiplying the sample size by the average equivalised disposable income. It is not

Average values of taxes and benefits, for bottom and top quintiles ranked by equivalised disposable income of all households
Households with children
1979 1987 1990
Bottom Top Bottom Top Bottom Top
£ per year
Contributory cash benefits 328 112 396 115 370 156
Non-Contributory cash benefits 1,066 355 3,356 700 3,689 735
Direct Taxes and NIC 461 2,772 721 7,728 1,026 9,748
Indirect taxes 695 1,817 1,442 3,653 1,772 4,805
Equivalised disposable income1 1,903 7,314 3,648 17,645 4,315 25,618
Benefits in kind 1,883 1,182 3,529 2,511 4,367 3,061
Final income 4,072 9,839 7,261 23,703 8,500 34,397
1 Using the McClements equivalence scale with a household of a married couple = 1.

Notes:

Due to possible mis-recording of some non-contributory benefits as contributory benefits, the split between the two types of benefit should be treated with caution.

The equivalence scales used in the analysis are only applicable to disposable income. It is not appropriate to apply them to other income measures or composite parts of those measures.

These figures are not strictly comparable over time because of changes in classification of taxes and benefits and because of changes in the Family Expenditure Survey.

possible to calculate the total value for all households in the United Kingdom as the appropriate grossing factors are not available.

The average values of equivalised disposable income for all households for alternate years from 1977 to 1987 and for 1988 are published in the March 1991 edition of "Economic Trends", the average values for 1989 and 1990 are published in the January 1992 and January 1993 editions respectively. The January 1993 edition of "Economic Trends" has references to the annual articles.

Ms Corston

To ask the Chancellor of the Exchequer what was the average value in 1979, 1987 and 1990, at 1990 prices per equivalent adult in households with children of(a) contributory benefits in cash, (b) non-contributory benefits in cash, (c) direct taxes, (d) indirect taxes, (e) equivalised disposable income, (f) benefits in kind and (g) final income, within the bottom and top quintiles of all households ranked by disposable income.

Mr. Nelson

The information is not available in the precise form requested because the equivalence scale used is based on households rather than adults. In addition, the figures are available only at current prices.

Mr. Dewar

To ask the Chancellor of the Exchequer (1) what was the(a) total income of the top 1 per cent. of taxpayers, (b) unearned income of the top 1 per cent. of taxpayers, (c) unearned income of all taxpayers, (d) total number of taxpayers and (e) number of taxpayers in the top 1 per cent. in each year since 1979;

(2) what was the total unearned income of (a) all taxpayers and (b) the top 1 per cent. of taxpayers divided into income from (i) shares and securities, (ii) bank and interest-bearing accounts, (iii) building societies accounts and deposits, (iv) rents, (v) pensions and annuities and (vi) other, with details for each year since 1979.

Mr. Dorrell

[holding answer 4 May 1993]: Available information is given in the tables. Estimates of income are based on information reported to tax offices and collected through annual surveys of personal incomes. For years before 1985–86, estimates exclude employees' contributions to occupational pension schemes and some investment income on which tax is deducted at source. It is therefore not possible to provide estimates of the total unearned income of all taxpayers, although information on the top 1 per cent. of taxpayers is available. For years up to and including 1989–90, married couples are counted

£ billion
All taxpayers Top 1 per cent. of taxpayers
Dividends Bank and Building Society Interest Rents Other unearned income Dividends Bank and Building Society Interest Rents Other unearned income
1978–79 0.5 0.1 0.1 0.4
1983–84 0.7 0.3 0.2 0.8
1984–85 0.6 0.4 0.2 0.7
1985–86 0.8 0.8 0.2 0.6
1986–87 3.7 11.8 1.0 2.7 1.0 0.8 0.3 0.7
1987–88 4.8 12.1 1.1 3.0 1.2 0.8 0.2 0.9
1988–89 6.9 13.4 1.5 3.6 2.5 1.3 0.3 1.1
1989–90 8.1 21.0 2.0 4.2 3.3 1.6 0.5 1.7
1990–91 8.7 26.4 1.8 5.0 3.0 2.0 0.4 1.8