(2) what estimate he has made of the value of national insurance payments made by each income decile group in each year since 1997-98.
The information requested falls within the responsibility of the National Statistician, who has been asked to reply.
Letter from Karen Dunnell, dated 7 February 2007:
As National Statistician, I have been asked to reply to your recent Parliamentary Questions asking (1) what estimate has been made of the value of income tax payments made by each income decile since 1997-98 (115529) and (2) what estimate has been made of the value of national insurance payments made by each income decile group since 1997-98 (115531).
Estimates of income tax, and national insurance payments appear in the ONS analysis ‘The effects of taxes and benefits on household income’. The latest analysis for 2004/05 was published on the National Statistics website on 12th May 2006 at: http://www.statistics.gov.uk/taxesbenefits. The analysis is based on data from the Expenditure and Food Survey, which is a sample survey covering approximately 7,000 households in the UK.
The tables below show the average annual payments of these taxes for households in each income decile. These average payments reflect both the number of households paying each tax, and the size of the payments. Since the results are based on a sample survey, some of the year to year movement is due to sampling variability. However the tables do illustrate longer term trends in the distribution of tax payments.
£ per year Decile groups of all households ranked by equivalised disposable income Bottom 2nd 3rd 4th 5th 6th 7th 8th 9th Top All households At current prices 1997-98 239 344 514 1,010 1,764 2,443 3,392 4,693 6,049 11,954 3,240 1998-99 216 354 514 1,027 1,712 2,427 3,254 4,323 5,853 13,169 3,285 1999-2000 174 313 532 1,094 1,771 2,479 3,485 4,531 6,421 13,312 3,411 2000-01 217 394 781 1,293 2,023 2,776 3,956 4,957 6,703 13,450 3,655 2001-02 232 335 666 1,386 1,989 2,781 3,987 5,279 7,338 15,902 3,989 2002-03 196 484 657 1,297 2,024 2,833 4,064 5,459 7,427 15,131 3,957 2003-04 271 359 684 1,277 2,026 2,959 4,004 5,508 7,413 16,266 4,076 2004-05 194 451 809 1,351 2,210 3,030 4,079 5,749 8,094 16,590 4,256 ' From 2002-03 onwards, Income tax is shown after the deduction of any tax credits, which offset payments of income tax. Before 2002-03 tax credits treated as social security benefits. The effects on these figures is small. Source: ‘The effects of taxes and benefits on household Income’, ONS
£ per year Decile groups of all households ranked by equivalised disposable income Bottom 2nd 3rd 4th 5th 6th 7th 8th 9th Top All households At current prices 1997-98 75 141 215 414 718 985 1,249 1,646 1,967 2,147 956 1998-99 96 162 236 478 756 1,000 1,348 1,675 2,002 2,330 1,008 1999-2000 84 148 244 466 724 1,038 1,334 1,635 2,147 2,179 1,000 2000-01 82 158 295 459 783 1,054 1,434 1,683 2,006 2,302 1,026 2001-02 84 130 258 456 795 1,068 1,433 1,863 2,342 2,564 1,099 2002-03 79 181 271 520 758 1,029 1,484 1,871 2,222 2,595 1.101 2003-04 92 183 330 610 925 1,301 1,622 2,161 2,616 3,326 1,317 2004-05 90 236 428 636 1,030 1,358 1,724 2,321 3,023 3,506 1,435 Source: ‘The effects of taxes and benefits on household income’, ONS