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24 May 2004 : Column 1453W—continued

Child Tax Credit

Mr. McNamara: To ask the Chancellor of the Exchequer how many families in Hull North are eligible   for the child tax credit; and what the take-up rate is. [174793]

 
24 May 2004 : Column 1454W
 

Dawn Primarolo: For the number of recipient families, I refer my hon. Friend to my answer to my hon.   Friend the Member for Burton (Mrs. Dean) on 15 March 2004, Official Report, column 98W.

Council Tax

Mr. Edward Davey: To ask the Chancellor of the Exchequer if he will update the information set out in the answer of 17 November 2003, Official Report, columns 520–22W, on council tax, to take account of the effects of taxes and benefits on household income in 2002–03. [174862]

Ruth Kelly: The information requested falls within the responsibility of the National Statistician, who has been asked to reply.

Letter from Len Cook to Mr. Edward Davey, dated 24 May 2004:

As National Statistician, I have been asked to reply to your recent question asking for an update of the information set out in the answer of 17 November 2003, Official Report, columns 520–22W, giving how much council tax was paid as a proportion of gross income for households in each income quintile group in each English region. (174862)

Estimates have been produced from the Office for National Statistics' analysis "The effects of taxes and benefits on household income" published on the National Statistics website on 6 May 2004 at http://www.statistics.gov.uk/taxesbenefits. The analysis includes measures of income inequality for the United Kingdom as a whole based on data from the Expenditure and Food Survey. This is a sample survey covering about 7,000 households in the UK and sample sizes for each region are only sufficient to give approximate estimates.

The current analysis presents data for the category 'Council tax and Northern Ireland rates', as opposed to the category 'Local taxes' used in previous analyses. This is because, from this year, charges made by water authorities for water, environmental and sewerage services have been excluded. This treatment conforms to the National Accounts classification and definition of taxes where water rates and related charges are considered a charge for services rather than a tax. They have therefore been excluded from the calculation of disposable income. This reply is based on the new methodology and includes updated 2001–02 figures on this basis for comparison.

The table shows, for 2001–02 and 2002–03, the average net council tax paid for all households in each Government Office Region and for each income quintile group within each region where households are ranked by equivalised disposable income. Equivalisation is a standard methodology that takes into account the size and composition of households and adjusts their incomes to recognise differing demands on resources. The net council tax figures are gross council tax less reported council tax benefits and   discounts. The table also shows the boundaries between equivalised disposable income quintiles, which have been calculated separately for households in each Government Office Region. For example, the 1st quintile boundary is the income level below which one fifth of those households are estimated to lie.

Net council tax paid by households within each Government Office Region by equivalised disposable income quintile, 2001–02-England

	North East			North West and Merseyside			Yorkshire and the Humber
	Income boundary(100) (£)	Net council tax (£)	Net council tax as percentage of gross income	Income boundary(100) (£)	Net council tax (£)	Net council tax as percentage of gross income	Income boundary(100) (£)	Net council tax (£)	Net council tax as percentage of gross income
Quintile
Bottom	—	242	3.1	—	396	4.7	—	370	4.0
	9,112	—	—	9,995	—	—	10,245	—	—
2nd	—	420	3.3	—	430	3.4	—	375	3.0
	12,790	—	—	13,483	—	—	13,622	—	—
3rd	—	500	2.6	—	664	3.4	—	524	2.7
	17,972	—	—	17,937	—	—	17,920	—	—
4th	—	707	2.3	—	750	2.6	—	647	2.4
	26,154	—	—	24,290	—	—	23,907	—	—
Top	—	872	15	—	936	1.8	—	846	1.7
All households in region	—	548	2.2	—	635	2.6	—	553	2.3

 
24 May 2004 : Column 1455W
 

	East Midlands			West Midlands			Eastern
	Income boundary(100) (£)	Net council tax (£)	Net council tax as percentage of gross income	Income boundary(100) (£)	Net council tax (£)	Net council tax as percentage of gross income	Income boundary(100) (£)	Net council tax (£)	Net council tax as percentage of gross income
Quintile
Bottom	—	484	5.1	—	426	4.8	—	468	5.3
	10,517	—	—	10,071	—	—	11,116	—	—
2nd	—	549	3.5	—	429	3.5	—	527	3.4
	14,894	—	—	13,958	—	—	16,206	—	—
3rd	—	679	2.8	—	598	2.6	—	722	2.7
	19,777	—	—	18,032	—	—	22,332	—	—
4th	—	725	2.3	—	782	2.3	—	786	2.1
	26,917	—	—	25,358	—	—	30,455	—	—
Top	—	785	1.4	—	781	1.5	—	885	1.4
All households in region	—	644	2.4	—	603	2.3	—	678	2.2

	London			South East			South West
	Income boundary(100) (£)	Net council tax (£)	Net council tax as percentage of gross income	Income broundary(100) (£)	Net council tax (£)	Net council tax as percentage of gross income	Income boundary(100) (£)	Net council tax (£)	Net council tax as percentage of gross income
Quintile
Bottom	—	444	4.6	—	473	4.8	—	474	5.4
	11,647	—	—	12,758	—	—	10,955	—	—
2nd	—	559	3.1	—	643	3.3	—	570	3.8
	17,770	—	—	18,203	—	—	14,643	—	—
3rd	—	753	2.2	—	746	2.6	—	674	3.0
	25,855	—	—	24,832	—	—	19,555	—	—
4th	—	789	1.7	—	831	1.9	—	746	2.5
	38,166	—	—	35,472	—	—	26,542	—	—
Top	—	886	1.0	—	981	1.3	—	897	15
All households in region	—	686	1.7	—	735	2.0	—	672	2.5

Note:
⁽¹⁰⁰⁾ Boundary point between equivalised disposable income quintiles.
Source:
Office for National Statistics, based on the analysis 'The effects of taxes and benefits on household income'.





Net council tax paid by households within each Government Office Region by equivalised disposable income quintile, 2002–2003-England

	North East			North West and Merseyside			Yorkshire and the Humber
	Income boundary(101) (£)	Net council tax (£)	Net council tax as percentage of gross income	Income broundary(101) (£)	Net council tax (£)	Net council tax as percentage of gross income	Income boundary(101) (£)	Net council tax (£)	Net council tax as percentage of gross income
Quintile
Bottom	—	395	4.1	—	378	4.0	—	368	4.0
	10,600	—	—	10,952	—	—	10,378	—	—
2nd	—	474	3.5	—	487	3.3	—	490	3.4
	14,052	—	—	14,832	—	—	14,181	—	—
3rd	—	541	2.6	—	597	2.7	—	556	2.7
	18,501	—	—	19,287	—	—	19,533	—	—
4th	—	697	2.5	—	753	2.4	—	670	2.3
	24,518	—	—	26,993	—	—	25,829	—	—
Top	—	883	1.8	—	979	1.9	—	847	1.6
All households in region	—	598	2.4	—	639	2.4	—	586	2.4

 
24 May 2004 : Column 1457W
 

	East Midlands			West Midlands			Eastern
	Income boundary(101) (£)	Net council tax (£)	Net council tax as percentage of gross income	Income broundary(101) (£)	Net council tax (£)	Net council tax as percentage of gross income	Income boundary(101) (£)	Net council tax (£)	Net council tax as percentage of gross income
Quintile
Bottom	—	513	5.1	—	406	4.3	—	591	5.4
	10,992	—	—	10,865	—	—	12,113	—	—
2nd		558	3.4	—	497	3.3	—	580	3.3
	15,238	—	—	14,259	—	—	16,944	—	—
3rd		691	2.9	—	656	2.9	—	784	2.9
	20,734	—	—	19,323	—	—	22,195	—	—
4th		835	2.3	—	802	2.4	—	855	2.3
	28,150	—	—	26,717	—	—	33,990	—	—
Top		956	1.6	—	883	1.7	—	958	1.5
All households in region	—	711	2.4	—	649	2.5	—	753	2.4

	London			South East			South West
	Income boundary(101) (£)	Net council tax (£)	Net council tax as percentage of gross income	Income broundary(101) (£)	Net council tax (£)	Net council tax as percentage of gross income	Income boundary(101) (£)	Net council tax (£)	Net council tax as percentage of gross income
Quintile
Bottom	—	395	3.7	—	553	5.3	—	480	5.6
	11,904	—	—	12,545	—	—	11,576	—	—
2nd	—	507	3.1	—	660	3.6	—	602	4.0
	17,009	—	—	18,310	—	—	16,173	—	—
3rd	—	714	2.3	—	851	2.9	—	769	3.0
	26,286	—	—	24,805	—	—	21,231	—	—
4th	—	918	1.9	—	938	2.3	—	844	2.5
	37,876	—	—	33,743	—	—	29,152	—	—
Top		928	1.0	—	1050	1.5	—	988	1.8
All households in region	—	693	1.8	—	811	2.4	—	737	2.7

Note:
⁽¹⁰¹⁾ Boundary point between equivalised disposable income quintiles.
Source:
Office for National Statistics, based on the analysis 'The effects of taxes and benefits on household income'.

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