Skip to main content

Personal Incomes

Volume 959: debated on Monday 4 December 1978

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 a table showing for 1949–50, 1960–61, 1973–74 and 1978–79 the effective rate of income tax plus national insurance contribution, contracted-in to the State pension scheme in 1978–79, for each of a single person, a two-wage married couple, a single-wage married couple and single-wage married couples with each of two children aged 14 and 12 years and four children aged 16, 14, 12 and 9 years, assuming income

EFFECTIVE RATE OF INCOME TAX PLUS NATIONAL INSURANCE CONTRIBUTIONS
YearSingle person percentageMarried couple percentageMarried couple(bothworking) percentageMarried couple 2 children aged 14 and 12percentageMarried couple 4 children aged 16, 14 12 and 9 percentage
50 per cent, of average earnings—
1949–509·56·912·36·45·7
1960–6112·97·812·36·55·7
1973–7420·115·08·26·66·1
1978–79 (estimate)22·114·26·59·96·5
75 per cent, of average earnings—
1949–5013·36·58·24·44·0
1960–6115·610·48·84·44·0
1973–7425·021·711·314·49·4
1978–79 (estimate)27·922·412·518·314·7
Average earnings—
1949–5016·010·46·13·43·1
1960–6118·513·69·55·23·1
1973–7427·525·017·219·415·3
1978–79 (estimate)30·826·718·023·320·3
200 per cent, of average earnings—
1949–5024·620·412·813·58·3
1960–6124·321·815·615·69·9
1973–7429·428·126·125·323·0
1978–79 (estimate)33·231·228·729·327·5
300 per cent, of average earnings—
1948–5028·425·617·720·916·5
1960–6127·425·220·520·416·5
1973–7430·829·728·227·225·3
1978–79 (estimate)38·035·733·333·932·2
For 1949–50 and 1960–61 the average earnings are the annual equivalents of the average weekly earnings of males aged 21 and over in manufacturing and certain other industries in October in each year. For 1973–74 the figures are based on the averages of the new earnings survey estimates of the average earnings of full time adult male manual workers at the start and finish of each tax year. To give an estimate for 1978–79, the April 1978 new earnings survey figure has been updated to September 1978, the latest month for which a figure is available.

all earned and equivalent to 50 per cent., 75 per cent., 100 per cent., 200 per cent. and 300 per cent. of average earnings, that there are no allowances other than personal allowances, and taking into account the value of family allowances and child benefits where appropriate.

The figures are as follows:In the case of the two-wage married couple it has been assumed that each earns 50 per cent. of a joint income equivalent in total to the specified proportion of average earnings, that the wife would pay the full national insurance contribution rate and that for 1978–79 the couple on three times average earnings would have elected to have the wife's earnings taxed as if she were a single person.In calculating the effective rates, family allowance and child benefit are included in income where appropriate. The increase in child benefit in the course of 1978– 79 has been taken into account in the figures for married couples with children.