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Personal Incomes

Volume 889: debated on Monday 7 April 1975

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asked the Chancellor of the Exchequer what would be the estimated increase in take-home pay, after deduction of income tax and national insurance contributions, over the next 12 months of a married man with two schoolchildren, currently earning gross wages of £25, £30, £40, £50, £60 and £70 per week, and of the man on average earnings who gains a 20 per cent. pay award during the period, assuming increases in the retail price index of five per cent., 10 per cent., 20

£per week
Take-home pay after20 per cent.Change in real value of take-home pay after gross increase of 20 per cent. And an increase in prices of
Current gross weekly earningstake home pay †increase in gross pay5 per cent.10 per cent.20 per cent.30 per cent.40 per cent.
(1)(2)(3)(4)(5)(6)(7)(8)
2523·0026·15+1·90+0·77-1·21-2·89-4·33
3026·0829·84+2·34+1·05-1·22-3·13-4·77
4032·2337·22+3·22+1·60-1·22-3·60-5·65
5038·3844·60+4·09+2·16-1·22-4·08-6·53
52·86*40·1846·73+4·32+2·30-1·24-4·24-6·81
6044·5352·16+5·14+2·88-1·07-4·41-7·28
7051·1560·20+6·18+3·57-0·99-4·85-8·17
NOTES:

* Estimated average earnings of full-time adult male manual workers in manufacturing and certain other industries at December 1974.

†Take-home pay is after tax and national insurance contributions. National insurance contributions have been taken at pre-6th April 1975 rates for column (2) and post-6th April rates for column (3).

asked the Chancellor of the Exchequer taking the first quarter of 1964 as 100, what would be the index number for real personal disposable income per head in each of the quarters from 1964 to the latest available date.

The following table shows the latest estimates available:

PERSONAL DISPOSABLE INCOME—BEFORE PROVIDING FOR ADDITIONS TO TAX RESERVES AT 1970 PRICES, PER HEAD OF TOTAL POPULATION, SEASONALLY ADJUSTED
First quarter1964=100
1964—
First quarter100·0
Second quarter100·1
Third quarter101·4
Fourth quarter 101·4
1965—
First quarter101·9
Second quarter101·4
Third quarter102·5
Fourth quarter104·0
1966—
First quarter107·8
Second quarter103·1
Third quarter102·5
Fourth quarter103·3
1967—
First quarter102·4
Second quarter105·3
Third quarter107·0
Fourth quarter105·5
per cent., 30 per cent. and 40 per cent., respectively.

Assuming that 1974–75 rates of tax and allowances apply both before and after the increases in pay, that both children are not over 11 and that the men are not contracted out of the graduated pension scheme, the figures are as shown below:

1968—
First quarter108·3
Second quarter105·3
Third quarter105·9
Fourth quarter106·1
1969—
First quarter106·7
Second quarter105·3
Third quarter106·4
Fourth quarter107·5
1970—
First quarter106·8
Second quarter110·5
Third quarter111·4
Fourth quarter110·7
1971—
First quarter111·0
Second quarter111·2
Third quarter113·3
Fourth quarter114·6
1972—
First quarter114·5
Second quarter121·0
Third quarter120·0
Fourth quarter123·3
1973—
First quarter123·6
Second quarter125·9
Third quarter127·7
Fourth quarter127·4
1974—
First quarter125·1
Second quarter124·1
Third quarter129·4