§ Matthew TaylorTo ask the Chancellor of the Exchequer what estimate he has made of the number of households facing marginal deduction rates in(a) 2001–02, (b) 2000–01, (c) 1999–2000 and (d) 1998–99 over (i) 70 per cent., (ii) 60 per cent. and (iii) 50 per cent.; and if he will make a statement. [5400]
§ Dawn PrimaroloHistorical estimates from 1997–98 to 1999–2000 of the number of households facing marginal deduction rates in excess of 50 per cent. are contained in the Social Security Departmental Report—The Government's Expenditure Plans 2000–01 to 2001–02. Forward-looking estimates, which include the impact of the tax and benefit changes in the last four Budgets, are contained in the table. The effect of the tax and benefit changes is to reduce the number of households facing marginal deduction rates in excess of 70 per cent. by around half a million.
Marginal deduction rate Before Budget 19981 After Budget 20011 Percentage 100 or more 5,000 0 90 or more 130,000 40,000 80 or more 300,000 210,000 70 or more 740,000 255,000 60 or more 760,000 900,000 50 or more 760,000 1,100,000 1 The numbers in the table are cumulative and show the numbers of households in receipt of either income related benefits or the WFTC where at least one person works 16 hours or more.