Skip to main content

Family Allowances

Volume 933: debated on Monday 13 June 1977

The text on this page has been created from Hansard archive content, it may contain typographical errors.

asked the Chancellor of the Exchequer if he will publish in the Official Report the net income effects of withdrawing the married man's tax allowance from all men with wives under 55 years of age and paying it as a cash home responsibility payment to mothers of children under 5 years for (a) families

Gross Weekly EarningsWith 1977–78 Allowances†Where children are Under 5 years old £payment‡ madeWhere children are over 5 but not over 11 No payment made but difference between single and married allowances withdrawn
Not TaxedTaxed
1.Family with one child not over 11—
(i)¾ average earnings59·9350·1754·5052·1947·50
(ii)Average earnings79·9063·5567·8965·5860·89
(iii)2Xaverage earnings159·80115·89119·36116·21112·36
(iv) 5X average earnings399·50202·52203·47198·22196·47
2.Family with two children not over 11—
(i) ¾ average earnings59·9352·7557·0854·7750·08
(ii) Average earnings79·9066·1370·4668·1563·46
(iii) 2Xaverage earnings159·80118·70122·33119·18115·33
(iv) 5Xaverage earnings399·50206·48207·42202·17200·42
3.Family with four children not over 11—
(i) ¾ average earnings59·9357·9062·2459·9355·24
(ii) Average earnings79·9071·2975·6273·3168·62
(iii) 2Xaverage earnings159·80124·31128·08125·12121·08
(iv) 5Xaverage earnings399·50214·38215·32210·07208·32
* New Earnings Survey estimates of average earnings of full-time adult males in April 1976, updated to March 1977 by the index of average earnings. Gross earnings exclude child benefits, although these are included in net income figures.
• Assuming implementation of all Budget proposals.
‡ This assumes a payment of £7 per week to each mother with children under 5 years of age, regardless of the number of children.

asked the Chancellor of the Exchequer what is his estimate of the revenue cost of a new tax allowance, entitled parental allowance, given to the mother if she is a taxpayer, the father if she is not, introduced at a level of £156 per family.

pursuant to his reply [Official Report, 23rd May 1977; Vol. 932, c. 345], gave the following information:At 1977–78 income levels and assuming full implementation of all the Budget proposals, the cost would be about £335 million.