asked the Minister for Finance if he will give details regarding average net income, after State reductions and transfers, for (a) those in receipt of social welfare payments (b) those working in industry and (c) those working in service industries; and if he will provide this information in respect of the years 1975 to date in both nominal and real value terms.
Written Answers. - Average Net Income.
58.
The information sought by the Deputy is set out in the form of a table.
As regards part (b) of the Deputy's question, the information is based on earnings figures related to the manufacturing sector. There is no official series on earnings in the services sector — so information cannot be supplied for part (c) of the Deputy's question.
As regards part (a) of this question, it is assumed that the Deputy wished to make a comparison between the relative position of those on welfare and those in employment. Accordingly, the most appropriate category of welfare recipients for this purpose would be those on unemployment benefit. The table below, therefore, compares the position of a married man, wife not working, with two dependent children on unemployment benefit with his counterpart on the average net weekly earnings of an adult male in manufacturing industry.
Table
Married Man (Spouse Not Working 2 Dependent Children) on Average Male Manufacturing Wage
|
1975 |
1976 |
1977 |
1978 |
1979 |
1980 |
1981 |
1982 |
1983 |
1984 |
1985 |
1986 |
|
|
Gross Employee |
||||||||||||
|
Income (£) |
2,776 |
3,316 |
3,871 |
4,408 |
5,038 |
5,898 |
6,859 |
7,692 |
8,581 |
9,615 |
10,531 |
11,297 |
|
Nominal Change (%) |
19.5 |
16.7 |
13.9 |
14.3 |
17.1 |
16.3 |
12.1 |
11.6 |
12.0 |
9.5 |
7.3 |
|
|
Real Change (%) |
1.3 |
2.7 |
5.9 |
1.0 |
–0.9 |
–3.4 |
–4.3 |
1.1 |
3.1 |
3.9 |
3.3 |
|
|
Total Deductions (£) |
489.63 |
669.82 |
801.49 |
797.62 |
880.62 |
1,072.71 |
1,399.45 |
1,644.90 |
2,137.64 |
2,542.43 |
2,870.89 |
3,056.13 |
|
Net Employee |
||||||||||||
|
Income (£) |
2,286.37 |
2,646.18 |
3,069.51 |
3,610.38 |
4,157.38 |
4,825.29 |
5,459.55 |
6,047.10 |
6,443.36 |
7,072.57 |
7,660.11 |
8,240.87 |
|
Nominal Change (%) |
15.7 |
16.0 |
17.6 |
15.2 |
16.1 |
13.1 |
10.8 |
6.6 |
9.8 |
8.3 |
7.6 |
|
|
Real Change (%) |
–1.9 |
2.1 |
9.3 |
1.8 |
–1.8 |
–6.1 |
–5.4 |
–3.4 |
1.1 |
2.8 |
3.6 |
|
|
Unemployment Benefit |
||||||||||||
|
(flat rate) (£) |
1,049.75 |
1,229.15 |
1,411.15 |
1,625.65 |
1,840.80 |
2,272.40 |
2,698.80 |
3,370.25 |
3,715.40 |
4,024.70 |
4,289.05 |
4,485.00* |
|
Nominal Change (%) |
17.1 |
14.8 |
15.2 |
13.2 |
23.4 |
18.8 |
24.9 |
10.2 |
8.3 |
6.6 |
4.6* |
|
|
Real Change (%) |
–0.8 |
1.1 |
7.1 |
4.4 |
–1.3 |
6.7 |
–0.2 |
–0.3 |
1.1 |
0.7* |
Note: It is assumed that no tax reliefs or allowances are available other than the personal allowance, PAYE allowance, PRSI allowance and Child allowance (the latter up to 1985/86 ony) appropriate to a married taxpayer with one spouse earning.
* Child dependant allowances were not increased in 1986 but the savings therefrom were used to partly finance a significant increase in Child Benefi t Rates from April 1986.