Taxation

(asked on 22nd June 2022) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, at what point on the tax and income scale does a person become a net contributor to the Exchequer (a) by income and (b) by tax paid in the last three years.


Answered by
Lucy Frazer Portrait
Lucy Frazer
Secretary of State for Culture, Media and Sport
This question was answered on 30th June 2022

At Spring Statement 2022, the Government published analysis which illustrates the overall impact of tax, welfare and public services spending for households across the income distribution.

This analysis shows that in the year 2024-25 the poorest 60% of households will receive more in welfare and public spending than they contribute in tax.

Using ONS data from 2019-20, available at Effects of taxes and benefits on household income - Office for National Statistics (ons.gov.uk), which only considers tax and welfare, the poorest 50% of households are estimated to receive more in welfare than they contribute in tax.

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