§ Dr. McDonald
asked the Chancellor of the Exchequer if he will publish in the Official Report the level of earnings at which for a two-child family deductions in tax and national insurance contributions are equivalent to income from family income supplement at April and November of each financial year from 1971–72; and if he will also express the figures at 1971–72 prices.
§ Mr. Ridley
[pursuant to his reply, 14 February 1983, c. 8.]: The information is in the following table. The family income supplement—FIS—scheme started in August 1971. The table is for a married couple with two children under 11 and assumes (a) no income other than the husband's earnings and child benefit/family allowance; and (b) no income tax reliefs other than the appropriate personal allowances, including child tax allowances up to 1978–79. National insurance contributions are at the contracted in rate.
In the calculations, amounts of FIS have been left unrounded and not rounded up—as they are in practice—to the next 10p. The income levels shown in the table apply to an award of FIS at the rates in force for claims made at the date shown. In considering the figures in the table, it is important to bear in mind that child tax allowances were replaced by child benefit during the period. The levels of earnings shown in the lower part of the table are less that they would have been if that change had not taken place; and the figures do not therefore represent "break even" points.
Gross Weekly Earnings at which Entitlement to Family Income Supplement Equals Liability to Income Tax and National Insurance Contributions Married man with two children aged under 11 Gross weekly earnings at current prices gross weekly earnings at 1971–72 prices 1971 November 16.62 16.50
Gross weekly earnings at current prices gross weekly earnings at 1971–72 prices 1972 April 18.45 17.80 November 18.45 17.05 1973 April 19.81 17.55 November 20.29 17.00 1974 April 20.29 15.60 November 23.95 16.95 1975 April 23.86 15.05 November 28.21 15.95 1976 April 29.99 15.90 November 34.67 17.05 1977 April 36.14 16.70 November 36.17 17.35 1978 April 39.56 16.55 November 40.91 16.45 1979 April 41.38 15.75 November 47.82 16.40 1980 April 49.14 15.35 November 56.92 16.95 1981 April 56.27 15.70 November 60.83 16.15 1982 April 62.09 15.85 November 67.44 16.85