§ Mr. AmessTo ask the Chancellor of the Exchequer at what proportion of average earnings(a) a sole earner in a married two-parent, two-child family and (b) a single person with no children would start paying income tax in (i) April 1998, (ii) October 1998 and (iii) October 1999 taking into account family credit and the proposed working family tax credit; and how these figures compare with the position taking account of the equivalent benefits in 1968–69. [45994]
§ Dawn PrimaroloIn 1998–99 a single person will start paying income tax at earnings of £81 per week, 24 per cent. of median full-time earnings (£337 per week). A married couple with one earner and 2 children under 11 will start to pay income tax at earnings of £108 per week, 32 per cent. of median full-time earnings. With the introduction of WFTC a married couple with one earner and 2 children under 11 will start to pay income tax at earnings of £245 per week. Additional help with child care is available to working families through the child care tax credit within WFTC. For example, a 2 earner couple on median earnings with 2 children and child care costs of £80 per week will gain £46 per week to this cost.