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Personal Incomes

Volume 951: debated on Tuesday 6 June 1978

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asked the Chancellor of the Exchequer if he will bring up to the latest available date the index of real take-home pay of the average industrial worker given in his reply to the hon. Member for Cirencester and Tewkesbury (Mr. Ridley) on 22nd July 1977, Official Report, columns 773–5; and what he estimates the index will be in 1978–79 assuming the forecasts in the most recent Financial Statement and Budget Report, on the same basis as the estimates given in his reply to the hon. Member for St. Marylebone (Mr. Baker) on 11th May 1978.

pursuant to his reply [Official Report, 25th May 1978; Vol. 950, c. 743], gave the following information:The figures for 1977–78, and for 1978–79 on the basis outlined by the hon. Member are as follows:—

Index of real net income of the average industrial worker (1945–46=100)
1977–78165
1978–79173
The figures assume a married man on average manual earnings with two children not over 11 and whose wife is not working. The figure for 1977–78 has been calculated on the same basis as

those given in reply to the hon. Member for Cirencester and Tewkesbury on 22nd July 1977.—[

Official Report, Vol. 935, c. 773–5.] "Real net income" is the same as "real take-home pay" in that reply but is used in preference as "take-home pay" is now taken to exclude child benefit.

Average earnings in October 1978, representing the year 1978–79, have been notionally estimated as follows: on the basis that in October 1977 a man on average earnings has not yet received an increase in the curent pay round, it may be assumed that his earnings will rise by a further 10 per cent. to October 1978 in accordance with the Government's guideline. It is assumed that the retail prices index will rise by 7 per cent. over the same period.

The figure for 1978–79 takes account of the Budget Statement and of the increase in child benefits proposed for November 1978.