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Taxation (Marginal Rates) Deduction

Volume 300: debated on Wednesday 12 November 1997

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To ask the Chancellor of the Exchequer how many people of working age currently face combined marginal rates of withdrawal of tax, national insurance contributions and means-tested benefits of (a) under 50 per cent., (b) 50–69 per cent., (c) 60–69 per cent., (d) 70–79 per cent., (e) 80–89 per cent. and (f) 90 per cent. or above. [14022]

Figures for the number of families estimated to be facing high marginal deduction rates, for 1996–97 are contained in the following table:

Marginal deduction rate (per cent.)Number at or above the rate (thousands)


Based on Family Resources Survey, uprated to 1996–97 levels, adjusted to benefit caseloads using Housing Benefit Management Statistics and the Family Credit Statistical Sample. Figures are calculated for benefit units in receipt of income-related benefits where at least one partner works 16 hours a week or more.