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Personal Incomes

Volume 114: debated on Monday 6 April 1987

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asked the Chancellor of the Exchequer what was the disposable income of a married man with two children and a wife who does not work at constant prices in 1978–79; and what is the predicted figure for 1986–87 (i) at half average earnings, (ii) at 75 per cent. average earnings, (iii) at 100 per cent. average earnings, (iv) at 150 per cent. average earnings and (v) at 200 per cent. average earnings.

The information is given in the table below. Average earnings are those for a man in full-time work paid at adult rates whose pay is not affected by absence. It has been assumed that the only tax relief or allowance available to the married couple is the married man's allowance. Net disposable income is taken to be gross income plus child benefit less income tax and national insurance contributions, assumed to be at the contracted-in rates.

Net disposable income of a married man with two children and a wife who does not work (£ per week) Multiple of Average Earnings
1978–79 £ per week1986–87 £ per week
0·5
At current prices45·27100·68
At 1986–87 prices87·53100·68
0·75
At current prices59·41133·75
At 1986–87 prices114·97133·75
1
At current prices73·45166·83
At 1986–87 prices142·02166·83
1·5
At current prices102·77236·14
At 1986–87 prices198·71236·14
2
At current prices133·86309·07
At 1986–87 prices258·82309·07