HC Deb 16 December 1997 vol 303 cc101-2W
Mr. Webb

To ask the Chancellor of the Exchequer how many employees would face combined marginal withdrawal rates of tax and benefits of(a) 100 per cent. or above, (b) 90 per cent. or above, (c) 80 per cent. or above, (d) 70 per cent. or above, (e) 60 per cent. or above and (f) 50 per cent. or above if they were (i) to work an extra one hour per week and (ii) to earn an extra £10 per week before tax. [19009]

Mrs. Liddell

Estimates for the number of families estimated to be facing high marginal deduction rates, after (i) working an extra hour a week and (ii) earning an extra £10 per week are contained in the following table:

Numbers facing high Marginal Deduction Rates (thousands) (i) Working an extra hour a week (ii) Earning an extra £10 a week Current estimates
100+ 5 5
90+ 105 105 105
80+ 355 350 360

Numbers facing high Marginal Deduction Rates (thousands) (i) Working an extra hour a week (ii) Earning an extra £10 a week Current estimates
70+ 630 625 645
60+ 640 635 655
50+ 645 640 660

Note:

The estimates are rounded to the nearest 5,000; ∗denote a figure of less than 2,500. Current estimates, are based on the combination of taxes and benefits which each benefit unit receives.

Source:

Based on Family Expenditure Survey, uprated to 1996–97 levels, adjusted to benefit caseloads using Housing Benefit Management Statistics and the Family Credit Statistical Sample. Figures are calculated for benefit units in receipt of income-related benefits where at least one partner works 16 hours a week or more.

Back to