§ 90. Mr. William Hamilton
asked the Chancellor of the Exchequer if he will give a breakdown of the statistics showing how a family of man, wife and two children aged seven and 12 years, with an earned income of £1,500, £2,000, £3,000, £5,000, £10,000, and £25,000, respectively, will fare as a consequence of the proposed income tax reduction, the proposed increase in charges for school meals, prescriptions and other health charges, school milk and welfare milk.
§ Mr. Maurice Macmillan
The reduction in income tax will benefit the two-child family at each level of income mentioned in the question: details are given in the table at the end of this Answer.
The effect of the increased prescription and other health charges will depend upon the use made of the health services. The charges, for which only the parents are liable, will have an average annual effect from April, 1971 in the region of 338W 30s. each parent per year. Assuming that the children take school meals, higher school meals charges will cost about £6 10s. a year each from April, 1971. The lowering of the age of eligibility for free school milk, starting in school year 1971–72, will not affect the 12-year-old since secondary school children are ineligible now. The seven-year-old will be affected by the withdrawal of free school milk if his seventh birthday occurred before the end of the preceding summer term. It would cost about 30s. in the financial year 1971–72 if the parents decide to replace the milk by greater private purchases. Children over five are ineligible for welfare milk.
Tax that will be paid after reduction of standard rate Income Per annum Tax Reduction Per annum Tax Paid Per annum £ £ s. d. £ s. d. 1,500 13 2 6 203 9 3 2,000 22 17 0 354 3 1 3,000 42 5 11 655 10 10 5,000 84 1 7 1,303 3 6 10,000 193 5 0 2,995 7 6 25,000 568 5 0 8,807 17 6
§ Mr. Thomas Cox
asked the Chancellor of the Exchequer if he will give a breakdown of the statistics showing how a family of man, wife and two children aged seven and 12 years, with an earned income of the average national weekly wage of £25 16s. 5d. will fare as a conseqeuence of the proposed increase in charges for school meals, prescriptions, and other health charges, school milk, and welfare milk.
§ Mr. Maurice Macmillan
I would refer the hon. Member to the Answer I gave today to the hon. Member for Fife, West (Mr. William Hamilton). The information there on the effect of increases in charges is applicable also to the family of a man earning £25 16s. 5d. a week.