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Personal Incomes

Volume 114: debated on Monday 6 April 1987

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asked the Chancellor of the Exchequer if he will publish a table for each year since 1971 showing the tax-free income for each of a one-, two-, three-and four-child family, including chidren aged between 11 years and 16 years and over 16 years, family income and supplementary beneft entitlement levels, including average housing costs.

The tables show break-even points measured as a percentage of family income supplement prescribed amounts and supplementary benefits ordinary scale rates — plus average housing costs. Break-even points are the levels of taxable income at which a net liability to tax arises after deducting receipt of child benefit from payment of income tax.

Weekly break-even points as a percentage of FIS prescribed amounts in April of each year5
1 earner couple
with one child1with two children2with three children3with four children4
1971–7285·1101·1117·9134·5
1972–7393·4107·0122·0137·1
1973–7489·3100·2112·5124·6
1974–7598·8111·2124·6137·6
1975–7691·9104·9117·6129·8
1976–7784·697·7110·2122·0
1977–7889·099·7110·3120·5
1978–7995·2109·7121·3132·2
1979–80110·1128·0143·2156·2
1980–8199·1115·2129·2141·3
1981–8286·1100·2111·8121·6
1982–8388·2101·8113·0122·4
1983–8489·7103·1114·1123·2
1984–8596·8110·4121·5130·7
1985–8699·4112·5123·2132·1
1986–8797·1109·2118·0124·3
1987–8899·1112·5122·3129·3

1 Aged under 11.

2 Two children aged under 11.

3 Two children aged under, one aged 11–15.

4 Two children aged under 11, one aged 11–15, one aged 16.

5 For 1971–72, the FIS prescribed amounts relate to the introductory levels of FIS in August 1971.

Weekly break-even points as a percentage of supplementary benefit ordinary scale rates (plus average housing costs) in April of each year.

1 earner couple

With one child1

With two children2

With three children3

With four children4

1971–72120·3139·0155·0163·2
1972–73133·5147·2158·7161·7
1973–74122·1133·7143·7145·5
1974–75119·9132·3142·5144·7
1975–7695·9107·8116·5118·6
1976–7797·5110·0118·9120·9
1977–78110·4118·5123·4122·0
1978–79118·7130·8136·0133·9
1979–80132·9147·5154·8152·4
1980–81120·7133·4140·1138·0
1981–82102·0116·1121·2121·8
1982–83105·2119·3124·3124·7
1983–84109·0123·0127·6127·7
1984–85114·0128·2133·0133·1
1985·865116·8130·5134·8134·5
1986–875117·7131·5135·8135·5
1987–885119·9135·3140·5140·9

1 Aged under 11.

2 Two children aged under 11.

3 Two children aged under 11, one aged 11–15.

4 Two children aged under 11, one aged 11–15, one aged 16

5 Provisional.

asked the Chancellor of the Exchequer whether he will publish in the Official Report a table showing for (a) two-earner families with a wife's earnings election and (b) other higher-rate taxpayers by tax category, his estimate of the number and distribution of incomes, together with the average unearned income and average amount of mortgage interest relief in each income band in each category in the next financial year.

[pursuant to his reply, 25 March 1987, c. 213]: Information is given in the tables. The estimates are based on a projection from the 1984–85 survey of personal incomes and are therefore provisional.

Distribution of total income, 1987–88 For Higher Rate Tax Payers1

Single people

Married couples without wife's earnings

Range of total income Lower limit

Number of incomes

Average amount of investment income2

Average amount of mortgage interest relief2

Number of incomes

Average amount of investment income2

Average amount of mortgage interest relief2

£ pa)

('000s)

(£)

(£)

('000s)

(£)

(£)

20,000659,100610605,300350
25,000559,6001,1601003,400950
30,0002512,3001,390504,6001,250
35,0001013,0001,430357,2001,400
40,0002014,7001,220457,3001,550
50,0002534,7001,7705519,9001,750

Two-earner married couples

Without a wife's earnings election

With a wife's earnings election

Range of total income Lower limit

Number of incomes

Average amount of investment income2

Average amount of mortgage interest relief2

Number of incomes

Average amount of investment income2

Average amount of mortgage interest relief2

(£pa)

('000s)

(£)

(£)

('000s)

(£)

(£)

20,000553,200300000
25,0002252,300750501,450300
30,000903,7001,2001101,800800
35,000405,3001,300703,500950
40,000306,0001,500504,1001,200
50,0003014,2001,8005010,6001,550

1 Includes some 130 thousand tax units that are taken out of higher-rate tax following the wife's earnings election.

2 Average based on those having investment income or mortgage relief as appropriate.