Skip to main content

Wife's Earned Income Allowance

Volume 114: debated on Wednesday 8 April 1987

The text on this page has been created from Hansard archive content, it may contain typographical errors.

asked the Chancellor of the Exchequer whether he will publish in the Official Report a table showing the numbers and estimated cost of the wife's earned income allowance in the next financial year by range of the wife's income and of the joint incomes of husband and wife.

[pursuant to his reply, 23 March 1987, c. 40]:The latest estimates are given in the tables. They are based on a projection from the 1984–85 survey of personal incomes and are therefore provisional. They exclude wives who have no Inland Revenue tax record because their earnings are below the PAYE reporting limit.

Numbers and cost of the wife's earned income allowance, 1987–88 by range of wife's income1
Wife's income1 lower limit (£ pa)Number of earning wives2 '000s)Cost of wife's earned income allowance3(£ million)
1960105
1,0001,010385
2,0001,150700
3,000830550
4,000590390
5,000560385
6,000600415
7,000380265
8,000280200
9,000170135
10,000300265
12,000170165
15,0007075
20,0002030
30,0001015
All ranges7,1004,080
1 Wife's total earned income.
2All married women with earned income benefit from the wife's earned income allowance. The figures exclude those with earnings below the PAYE reporting limit and self-employed wives making a net loss.
3 Including personal allowance claimed by wives with separate earnings election.
Distribution of total income11987–88
Numbers
Tax units aged under 65Tax units aged over 65
Range of total income Lower limit (£ pa)Single people ('000s)Married couples without wife's earned income ('000s)Married couples with wife's earned income ('000s)Single people ('000s)Married couples without wife's earned income ('000s)Married couples with wife's earned income ('000s)
1,00021,1201703030205
2,00021,150260604603010
3,0009001607036012030
4,000900190100220210110
5,0001,07024014014022090
6,00091028014010011080
7,000810310170909070
8,000690380210608060
9,000560370280504050
10,000800820700606070
12,0005008601,230604070
15,0003205701,650404070
20,000100190710202050
25,00050100340101010
30,00040110380102020
50,00020507051010
1 Total income for income tax purposes.
2 Excluding those who have no Inland Revenue tax record because their earnings are below the PAYE reporting limit.

Numbers and cost of the wife's earned income allowance, 1987–88 by range of joint total income of husband and wife1

Joint total income1 lower limit (£ pa)

Number of earning wives2 ('000s)

Cost of wife's earned income allowance3 (£ million)

1200
1,000300
2,000700
3,0001100
4,00020015
5,00022055
6,00022050
7,000240110
8,000280125
9,000330160
10,000770390
12,0001,300725
15,0001,7201,035
20,0001,120830
30,000470545
All ranges7,1004,080

1 Total income for income tax purposes

2 All married women with earned income benefit from the wife's earned income allowance. The figures exclude those with earnings below the PAYE reporting limit and self-employed wives making a net loss.

3 Including personal allowance claimed by wives with separate earnings election.