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Income Tax, National Insurance And Welfare Benefits

Volume 375: debated on Wednesday 20 October 1976

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a) the sums deductible by way of income tax and National Insurance and ( b) the entitlements under all national welfare benefit schemes, of a married man in full-time employment, and with three school-age children, earning the following weekly gross sums on the last day of each of the following years (making reasonable and stated assumptions regarding rent and rate commitments):

  • 1960–£10.40 and £12.30;
  • 1968–£15.20 and £18.10;
  • 1970–£15.50 and £19.80;
  • 1971–£20.90 and £24.80;
  • 1972–£21.20 and £25.50;
  • 1973–£24.60 and £29.80;
  • 1974–£28.70 and £34.40;
  • 1975–£38.80 and £44.10.

I regret that information in the form and for the whole of the period requested and on the assumptions quoted (including those relating to the size of the family) would involve disproportionate expense to produce.The tables below have been extracted from information which is readily available.

TABLE 1—Married couple with 2 children (aged 4 and 6) earning half average wages.
YearGross earningsSums deductibleBenefits payable
TaxNIFAMFIS1Rent2Rent3 rebateRates4Rate5 rebateFree school mealsFree Welfare milk
1970£15·950·231·200·902·280·590·760·450·18
1971£17·350·041·270·900·902·550·150·850·600·39
1972£20·251·430·900·502·841·450·950·190·600 39
1973£22·750·661·510·900·203·562·811·190·280·600·39
1974£28·401·461·820·903·912·861·461·04
1975£34·353·241·891·504·333·221·731·240·750·60

TABLE 2—Married couple with 2 children (aged 4 and 6) earning 2/3 average wages.
YearGross earningsSums deductibleBenefits payable
TaxNIFAMFIS1Rent2Rent3 rebateRates4Rate5 rebateFree school mealsFree Welfare milk
1970£21·271·931·420·902·280·76
1971£23·131·781·550·902·550·85
1972£27·001·941·760·902·840·400·95
1973£30·332·941·910·903·561·371·19
1974£37·874·592·320·903·911·091·460·43
1975£45·807·252·521·504·331·131·730·52

NOTES TO TABLES:

1. FAMILY INCOME SUPPLEMENT commenced in August 1971.

2. & 4. The figures used for rent and rates are average Local Authority levels.

3. The national rent rebate scheme commenced in 1972. The rebate figures given for 1970 and 1971 are examples of a typical local authority scheme.

5. The first national rate rebate scheme commenced in 1967. It was restructured on the basis of the rent rebate scheme in 1974.

a) the sums deductible by way of income tax and national insurance (assuming exercise of the married woman's option) and ( b) the entitlements under all national welfare benefit schemes, of a separated woman in full-time employment (but receiving no maintenance payments) and with two school-age children, earning the following weekly gross sums on the last day of each of the following years (making reasonable and stated assumptions regarding rent and rate commitments):

  • 1960– £5·50 and £6·40;
  • 1968– £7·80 and £9·10;
  • 1970– £7·90 and £10·10;
  • 1971–£11·10 and £13·00;
  • 1972–£11·30 and £13·50;
  • 1973–£13·10 and £15·70;
  • 1974–£15·70 and £18·80;
  • 1975–£21·20 and £25·80.

I regret that information in the form and for the whole of the period requested and on the assumptions quoted (including those relating to the size of the family) would involve disproportionate expense to produce.The tables below have been extracted form information which is readily available.

TABLE 1—Separated woman with 1 child (aged 3) earning half average (male) wages.
YearGross earningsSums deductibleBenefits payable
TaxNI*FAMFIS1Rent2Rent3 rebateRates4Rate5 rebateFree school mealsFree Welfare milk
1970£15·950·831·072·240·75
1971£17·350·911·140·402·510·840·39
1972£20·2-0·781·302·761·190·92
1973£22·751·491·383·442·311·15
1974£28·402·741·693·822·191·430·82
1975£34·353·981·894·142·431·660·98

TABLE 2—Separated woman with 1 child (aged 3) earning 2/3 average (male) wages.
YearGross earningsSums deductibleBenefits payable
TaxNI*FAMFISRent2Rent3 rebateRates4Rate5 rebateFree school mealsFree Welfare milk
1970£21·272·541·292·240·75
1971£23·132·651·422·510·84
1972£27·002·811·632·760·92
1973£30·333·761·783·440·941·15
1974£37·875·862·193·820·581·430·25
1975£45·807·992·524·140·491·660·29

NOTES TO TABLES:

1. FAMILY INCOME SUPPLEMENT commenced in August 1971.

2 & 4. The figures used for rent and rates are average Local Authority levels.

3. The national rent rebate scheme commenced in 1972. The rebate figures given for 1970 and 1971 are examples of a typical local authority scheme.

5. The first national rate rebate scheme commenced in It was restructured on the basis of the rent rebate scheme in 1974.

* Standard rate contributions not reduced rate.