HC Deb 28 April 1994 vol 242 cc254-7W
Sir David Knox

To ask the Chancellor of the Exchequer if he will publish figures showing national insurance contributions and income tax liabilities, less child benefit where appropriate, as a percentage of gross earnings in each year since 1979–80 including estimates for 1994–95 for single people, single-wage married couples without children and with two children, and two-wage married couples without children and with two children assuming earnings/joint earnings equal to average male earnings, one-and-a-half times average male earnings and twice average male earnings in each year, and that the ratio of earnings between husband and wife is 60:40.

Income tax and national insurance contributions1 expressed as a percentage of earnings
Multiple average earnings3 Single Married2 1 earner Married2 1 earner 2 children Married2 2 earners Married2 2 earners 2 children
1978–79
1 31.5 27.8 20.9 19.8 12.9
1½ 33.3 30.8 26.2 26.4 21.7
2 33.7 31.4 27.9 29.6 26.2
1979–80
1 29.7 26.3 18.9 19.5 12.1
1½ 30.8 28.5 23.6 25.1 20.3
2 30.8 28.9 25.2 28.0 24.3
1980–81
1 30.7 27.3 20.8 21.3 14.8
1½ 31.6 29.4 25.0 26.4 22.1
2 32.0 29.7 26.5 29.0 25.8
1981–82
1 32.2 29.3 22.5 23.8 17.1
1½ 33.5 31.4 26.9 28.5 24.0
2 34.5 23.2 28.9 31.1 27.7
1982–83
1 33.0 29.8 22.8 24.1 17.1
1½ 34.3 32.2 27.5 29.0 24.3
2 34.5 32.3 28.8 31.4 27.9
1983–84
1 33.0 29.6 22.4 23.5 16.4
1½ 34.2 32.0 27.2 28.7 24.0
2 34.0 31.7 28.1 31.3 27.7
1984–85
1 32.7 29.2 22.0 22.9 15.7
1½ 33.9 31.5 26.8 28.3 23.5
2 33.9 31.5 27.9 31.0 27.4
1985–86
1 32.6 29.0 22.0 22.1 15.2
1½ 33.7 31.3 26.7 28.0 23.4
2 33.9 31.5 28.0 30.8 27.3
1986–87
1 31.9 28.5 21.9 21.6 15.0
1½ 32.9 30.6 26.2 27.6 23.2
2 33.3 30.9 27.6 30.2 26.9
1987–88
1 30.6 27.6 21.4 21.4 15.2
1½ 31.0 29.0 24.8 26.8 22.6
2 32.4 29.9 26.8 29.2 26.1
1988–89
1 29.1 26.3 20.7 20.6 15.0
1½ 28.9 27.0 23.2 25.6 21.8
2 30.6 28.3 25.5 28.0 25.2
1989–90
1 28.7 25.9 20.8 20.2 15.0
1½ 28.4 26.6 23.1 25.1 21.6
2 30.5 28.3 25.7 27.8 25.2
1990–97
1 28.2 25.5 20.8 19.8 15.0
1½ 28.1 26.2 23.1 24.5 21.3
2 31.1 28.9 26.6 26.6 24.3
1991–92
1 28.1 25.6 20.7 19.6 14.7
1½ 28.2 26.5 23.2 24.4 21.2
2 30.5 28.5 26.1 26.8 24.3
1992–93

Mr. Dorrell

The information is in the table.

Multiple of average earnings3 Single Married2 1 earner Married2 1 earner 2 children Married2 2 earners Married2 2 earners 2 children
1 27.6 25.2 20.2 18.8 13.8
1½ 27.7 26.1 22.8 23.9 20.5
2 30.8 28.9 26.4 26.2 23.7
1993–94
1 27.6 25.3 20.3 19.0 14.0
1½ 28.3 26.2 22.9 24.0 20.6
2 31.2 29.4 26.8 26.3 23.8
1994–95
1 28.6 26.8 21.9 20.4 15.5
1½ 29.4 28.3 25.0 25.3 22.0
2 32.1 31.2 28.7 27.4 25.0
1 Income tax payments are calculated on the assumption that the households receive no tax reliefs other than the standard allowances and only have income from employment. Child benefit has been subtracted from the total of income tax and national insurance contributions for couples with two children. All earners are assumed to pay class 1 national insurance contributions at the contracted-in rate.
2 Since 1990–91, husbands and wives have been taxed independently. Previously the tax liabilities of couples depended on their joint income. To permit comparisons with earlier years, the table therefore shows income tax and national insurance contributions paid by a married couple as a proportion of their joint income, assuming, as in the earlier years, that where both partners are earners, the husband and wife share the relevant multiple of earnings in the ration 60:40.
3 Average earnings are taken to be the average gross weekly earnings of all full-time males on adult rates with pay unaffected by absence. These are assumed to be £347.70 a week in 1992–93, £359.90 in 1993–94 and £374.30 in 1994–95, based on illustrative earnings growth assumptions of 3½ per cent. in 1993–94 and 4 per cent. in 1994–95.

Note: At the level of average earnings the real take home pay of each of the family types has increased by about £83 per week between 1978–79 and 1993–94.