The information requested falls within the responsibility of the UK Statistics Authority. I have asked the authority to reply.
Letter from Karen Dunnell, dated April 2009:
As National Statistician, I have been asked to reply to your recent question asking with reference to the Answer of 11 June 2008, Official Report, columns 308-9W, on taxation: income, if he will place in the Library an updated copy of table 14A of the Effects of Taxes and Benefits on Household Income, broken down by the age of the households reference person in five year bands from the ages of 20 to 80 years rather than by household income deciles, for the latest year for which figures are available. (270208)
The table requested is provided here for the year 2006/07, the latest period for which figures are available. This table will also be provided to the House of Commons Library.
Average incomes, taxes and benefits have been presented with households grouped in five year bands according to age of the household reference person (HRP). To ensure that all households are classified, an age group for households where the HRP is aged 80 or over has been included. Households where the HRP is under 20 (of which there are relatively few) are classified in the same group as those where the HRP is aged 20 to 24.
The information in this response is based on the Expenditure and Food Survey, which has a sample size of approximately 6,400 households. When breaking down this sample into age bands the sub-samples become quite small. The estimates for all of the age groups are based on sub-samples of around 370-710 households. With such small sample sizes, caution should be exercised when drawing any conclusions from these estimates. As an indication of sampling variability, the 95 per cent confidence interval for average gross household income for all households is approximately ±2.8 per cent. When disaggregating the information to smaller sub-groups, such as household age groups, the sampling variability will be greater due to a smaller sample size.
Household reference person age groups <25 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75-79 >79 All house-holds Average per household (£ per year) sample number in each band 181 403 477 625 708 647 549 574 543 446 468 366 401 6,388 Number of households in the population (thousand) 872 1,620 1,903 2,502 2,788 2,474 2,177 2,232 1,975 1,547 1,652 1,262 1,832 24,836 Original income Wages and salaries 17,713 28,822 33,988 34,435 31,895 36,387 34,005 27,071 17,298 3,794 1,670 1,083 372 23,000 Imputed income from benefits in kind 165 246 540 458 561 440 549 435 204 55 8 9 17 325 Self-employment income 840 2,611 3,907 4,300 3,880 5,329 4,447 3,632 3,403 1,405 475 130 334 3,036 Occupational pensions, annuities — 5 77 145 171 453 1,038 2,599 6,219 7,337 6,948 5,571 4,405 2,431 Investment income 134 161 420 813 958 616 1,178 1,581 1,784 1,636 2181 1,495 1,083 1,088 Other income 619 481 148 297 432 181 75 90 56 37 59 78 120 199 Total 19,470 32,327 39,080 40,448 37,897 43,406 41,292 35,409 28,964 14,263 11,342 8,366 6,331 30,080 Direct benefits in cash Contributory Retirement pension — 24 67 79 104 159 113 241 2,659 7,291 7,379 7,126 6,165 2,047 Jobseeker’s allowance (Contribution based) 12 12 — 29 10 21 35 34 9 5 — 21 5 16 Incapacity benefit 21 80 131 165 231 233 480 478 472 107 85 54 61 224 Widows’ benefits — — 21 18 20 28 40 47 10 — — 16 — 18 Statutory Maternity Pay/Allowance 64 110 254 80 84 23 23 27 — — — — — 53 Non-contributory Income support and pension credit 464 432 376 385 339 404 410 276 576 332 298 396 573 400 Child benefit 302 492 694 933 905 603 338 106 40 18 7 3 4 396 Housing benefit 688 672 432 510 323 353 467 366 417 440 442 423 530 448 Jobseeker’s allowance (Income based) 85 46 46 58 38 47 63 48 — — 8 12 35 38 Invalid care allowance — 17 41 28 49 79 25 61 34 91 16 32 41 42 Attendance allowance — — — — 2 5 — 29 28 30 61 226 262 42 Disability living allowance 42 42 182 121 204 342 326 380 503 531 351 254 112 268 War pensions/War widows' pensions — — 3 11 — 9 34 55 6 9 47 48 134 27 Severe disablement allowance — 1 33 29 20 33 48 57 53 26 40 68 55 36 Industrial injury disablement benefit — — — 2 15 19 17 28 29 25 22 10 26 15 Student support 379 211 61 72 72 93 73 56 11 — 5 — — 69 Government training schemes 4 — 4 6 8 14 15 7 0 — 0 0 — 5 Tax credits1 586 695 627 735 559 373 192 44 15 22 — — — 311 Other non-contributory benefits2 48 34 32 24 28 31 146 32 178 230 249 253 487 125 Total cash benefits 2,694 2,868 3,004 3,286 3,012 2,872 2,845 2,371 5,041 9,158 9,011 8,940 8,488 4,580 Gross income 22,164 35,194 42,084 43,734 40,909 46,278 44,137 37,780 34,005 23,421 20,353 17,305 14,819 34,661 Direct taxes and Employees’ NIC Income tax 2,423 4,920 6,551 6,976 6,365 7,382 6,680 5,573 4,942 2,553 1,970 1,110 908 4,954 Less: Tax credits3 111 297 270 324 318 197 112 46 13 4 3 4 9 148 Employees’ NI contributions 1,222 2,075 2,350 2,215 2,124 2,225 2,332 1,843 1,109 251 102 79 25 1,528 Council tax and Northern Ireland rates4 783 893 1,034 1,081 1,129 1,138 1,144 1,171 1,193 1,148 1,132 1,097 1,035 1,093 Less: Council tax benefit/Rates rebates 176 109 97 107 77 92 124 108 134 180 187 216 289 137 Total 4,141 7,481 9,569 9,841 9,223 10,456 9,919 8,433 7,097 3,768 3,014 2,067 1,670 7,290 Disposable income 18,024 27,713 32,516 33,893 31,685 35,822 34,218 29,347 26,908 19,653 17,339 15,238 13,149 27,370 Equivalised disposable income 17,931 27,706 31,953 29,475 26,853 28,972 28,275 28,594 26,814 22,165 19,840 18,101 17,286 25,831 Indirect taxes Taxes on final goods and services VAT 1,577 2,084 2,294 2,441 2,638 2,643 2,505 2,266 2,255 1,656 1,559 1,201 831 2,104 Duty on tobacco 488 355 417 329 374 314 334 462 185 261 201 121 82 306 Duty on beer and cider 152 148 138 132 148 160 155 140 120 79 66 34 22 120 Duty on wines and spirits 223 155 129 145 161 168 179 183 158 122 113 100 77 148 Duty on hydrocarbon oils 408 446 524 551 563 632 653 513 447 367 280 171 110 463 Vehicle excise duty 75 107 138 158 157 177 181 156 164 130 118 82 54 138 Television licences 114 124 130 125 141 126 129 126 125 124 118 4 0 111 Stamp duty on house purchase 68 207 321 188 245 123 119 154 171 156 71 67 54 159 Customs duties 27 30 31 33 35 36 35 30 30 23 21 17 14 29 Betting taxes 7 24 25 31 33 39 40 49 54 44 36 40 38 36 Insurance premium tax 24 40 45 50 54 57 59 50 53 42 45 37 24 47 Air passenger duty 7 37 16 25 46 44 28 29 44 43 32 22 5 31 Camelot National Lottery Fund 9 26 30 43 58 60 68 82 71 62 63 52 33 53 Other 19 5 24 14 23 12 24 33 16 14 37 6 3 18 Intermediate taxes Commercial and industrial rates 250 280 288 306 326 332 321 279 276 209 195 156 127 268 Employers’ NI contributions 441 493 508 540 574 586 566 491 486 369 344 276 223 472 Duty on hydrocarbon oils 151 168 174 184 196 200 193 168 166 126 118 94 76 162 Vehicle excise duty 13 14 14 15 16 17 16 14 14 11 10 8 6 13 Other 254 284 293 311 330 337 326 283 280 212 198 159 128 272 Total indirect taxes 4,305 5,025 5,538 5,620 6,119 6,062 5,932 5,510 5,113 4,050 3,624 2,646 1,907 4,950 Post-tax income 13,718 22,688 26,978 28,273 25,567 29,760 28,286 23,837 2,1795 15,603 13,715 12,593 11,242 22,420 Benefits in kind Education 4,339 1,853 2,241 3,895 4,651 3,705 2,348 708 386 97 77 13 17 2,042 National health service 2,499 2,504 3,000 2,859 2,813 2,732 2,727 2,398 2,791 3,460 4,070 6,084 8,578 3,462 Housing subsidy 42 14 13 14 14 13 20 20 19 15 10 20 16 17 Rail travel subsidy 54 55 48 54 45 46 39 36 32 12 9 6 6 36 Bus travel subsidy 56 56 41 39 37 61 60 49 98 120 131 125 117 72 School meals and welfare milk 48 62 44 55 34 36 17 4 5 2 — 0 24 Total 7,038 4,544 5,386 6,916 7,595 6,593 5,211 3,214 3,331 3,707 4,298 6,248 8,735 5,651 Final income 20,756 27,233 32,364 35,188 33,162 36,353 33,496 27,051 25,127 19,310 18,013 18,841 19,977 28,071 1 Child tax credit and working tax credit. 2 Includes age-related payments. 3 Including tax relief at source on life assurance premiums. Source: Office for National Statistics