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Family Incomes

Volume 23: debated on Tuesday 4 May 1982

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asked the Chancellor of the Exchequer what has been the effect of the 1982 Budget on real income movements since 1979 for a family with half average earnings, average earnings, one and a half times average earnings, double average earnings, three times average earnings and four times average earnings; and if he will make a statement.

The following table shows changes between 1978–79 and 1982–83 in the real disposable income of families with two children. Column (2) shows what real incomes would have been in 1982–83 if in the 1982 Budget income tax allowances and excise duty rates had been indexed in line with inflation in the year to December 1981. The difference between columns (2) and (3) thus gives a measure of the real terms effect of the Budget changes. NIC, child benefit, and FIS are at 1982–83 rates in both columns.

Real Disposable Income (1978–79 = 100)
(indexation)(announced changes)
Average earnings


Disposable income is gross earnings less income tax—assuming only a married man's allowance—and NIC at the contracted-in rate, plus child benefit and family income supplement where appropriate.