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Personal Income

Treasury written question – answered on 25th June 2019.

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Photo of Baroness Primarolo Baroness Primarolo Labour

To ask Her Majesty's Government further to the Written Answer by Lord Young of Cookham on 21 May (HL15607), whether the figures given for total take-home pay, child benefit and tax credits for a family of two adults, one of whom is aged 25 or over and works 35 hours per week and receives the National Minimum Wage or National Living Wage, were adjusted for inflation to allow for accurate comparisons between years; and if not, whether they will provide such figures.

Photo of Lord Young of Cookham Lord Young of Cookham Lord in Waiting (HM Household) (Whip), Lords Spokesperson (Cabinet Office)

The figures in HL15607 were shown in cash terms. The table below shows the same table in April 2019 prices, adjusted using the Consumer Prices Index and rounded to the nearest £5.

Table 1: Total take-home pay, Child Benefit, and tax credits in April 2019 prices for a family with two adults, one of whom is aged 25 or over and works 35 hours per week and receives the National Minimum Wage or National Living Wage


£ per annum





















The table above is true for a family with a particular set of circumstances. On average real household disposable income per person is 6.7% higher than at the start of 2010 – meaning people have more money to spend than they did in 2010. Since unemployment has fallen 48% since 2010, families are also significantly more likely to have at least one person in work now than in 2010.

The government has introduced policies to increase take home pay since 2010 including;

  • Increasing the Work Allowance in Universal Credit by £1000 from April 2019. This would provide up to an additional £630 per year for households with children and for people with disabilities;

  • Doubling the amount of free childcare available to working parents of 3 and 4 year olds, saving families using the full 30 hours around £5,000 per year. This is in combination with increasing the amount that working families can claim back in childcare to 85% of their registered childcare costs each month under UC, compared to 70% on the legacy system. For families with two children this could be worth up to £13,000 a year;

  • Increasing the Marriage Allowance from £1,190 in 2018-19 to £1,250 in 2019-20. The benefit is therefore worth up to £250 in 2019-20. It will continue to increase each time the Personal Allowance is increased.

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