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Personal Allowances

Volume 978: debated on Wednesday 6 February 1980

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asked the Chancellor of the Exchequer if he will publish figures tabulating the estimated costs of increasing each of the main personal allowances, including the age allowances, in accordance with section 22(2) of the Finance Act 1977.

The percentage by which the allowances should be increased will not be known until the index of retail prices for January is published later this month. Figures based on the increase in the index of 17·2 per cent. between December 1978 and December 1979 are as follows:

AllowanceNew valueCost £ million (Full year at 1979–80 income levels)
Single/wife's, earned income1,366750
Additional personal76210
Age allowance single1,80665
Aged income limit5,86285
The costs are based on the cumulative results of changing each of the allowances successively in the order listed. The allowances shown do not incorporate any rounding that would be needed for the operation of the PAYE scheme.