§ Mr. Malcolm BruceTo ask the Chancellor of the Exchequer what is his estimate of the percentage change 589W in the after-tax disposable income of United Kingdom households resulting from the changes announced in his recent Budget, broken down by each income decile; and if he will make a statement. [9484]
§ Dawn Primarolo[holding answer 21 July 1997]: The estimates are given in the table. These show changes in disposable income—that is income, including benefits less direct tax. That means that the figures include the effects of the change in mortgage interest relief in the Budget, but not excise duty or other tax changes.
The estimates made do not reflect the effect of new deal expenditure, such as measures helping young people into work, and the increased child benefit disregard for lone parents. This will increase disposable income, especially for households in the lower income deciles.
Household income decile Percentage change in after-tax disposable income Bottom -0.15 2 -0.15 3 -0.15 4 -0.20 5 -0.20 6 -0.25 7 -0.25 8 -0.25 9 -0.20 Top -0.15 Average -0.20 Note:
Household incomes are adjusted for differences in composition in households before allocating households to deciles. Percentages are rounded to the nearest 0.05 per cent.