HC Deb 31 March 1998 vol 309 cc447-9W
Mr. Willetts

To ask the Chancellor of the Exchequer (1) pursuant to Table 3.3, Effects of Budget on number of families with high marginal deduction rates, in his Financial Statement and Budget report (HC620), if he will publish equivalent figures for families facing marginal deduction rates of(a) 50 per cent. or more and (b) 40 per cent. or more; [35528]

(2) pursuant to Table 3.3 of the Red Book, how many people have a marginal deduction rate of 68.5 per cent. or more on current arrangements; and how many will have a deduction rate of 68.5 per cent. or more under his proposals. [35862]

Mr. Heathcoat-Amory

To ask the Chancellor of the Exchequer if he will estimate how many families will face a marginal deduction rate of between 50 per cent. and 60 per cent.(a) before and (b) after the introduction of working families tax credit. [36101]

Mr. Duncan Smith

To ask the Chancellor of the Exchequer how many families under the working families tax credit will have a marginal deduction rate of 50 per cent. or more; and how many currently have marginal deduction rates of 50 per cent. or more. [36416]

number of places that are currently unfilled on each non-departmental public body, (c) the total number of members that have resigned since 1 May 1997, (d) the total number that have retired since 1 May 1997, (e) the total number that have not had their contracts renewed since 1 May 1997, (f) the total number that have remained in place since 1 May 1997 and (g) the total number that have been appointed since 1 May 1997. [35272]

Mrs. Liddell

[holding answer 19 March 1998]: The information for the bodies listed in "Public Bodies", and for other NDPBs to which Treasury Ministers make appointments, is as follows:

Dawn Primarolo

[holding answers 20, 23, 24 and 26 March 1998]: The data requested are given in the table. It shows that the Budget has taken an important step towards tackling the unemployment and poverty traps. In-work incomes have increased, and the level at which families with 2 children start to pay effective income tax has risen from 25 per cent. to 50 per cent. of average earnings. The number of families facing very high marginal deduction rates has been reduced significantly. In those cases where families may face a higher MDR, they will still be better off.

Effect of Budget on number of families with marginal deduction rates of 40 per cent, or more1
(000)
Marginal deduction rate Before Budget After Budget
100 per cent, or more 5 0
90 per cent, or more 130 20
80 per cent, or more 300 200
70 per cent, or more 740 260
68.5 per cent, or more 760 810
60 per cent, or more 760 1,010

Effect of Budget on number of families with marginal deduction rates of 40 per cent. or more1
(000)
Marginal deduction rate Before Budget After Budget
50 per cent. or more 760 1,080
40 per cent. or more 800 1,120
1 Figures are for families in receipt of income-related benefits or the WFTC where at least one partner works 16 hours or more, and are based on 1997–98 caseload and take-up rates.

The figures do not take account of changes to National Insurance contributions, which will reduce MDRs for those just below the Lower Earnings Limit.