§ Mr. Ralph Howellasked the Chancellor of the Exchequer what is the total value of public support, in the form of tax allowances after clawback and family allowance net of standard rate income tax, to a married couple with two children not over 11 years of age, where the wife is not earning; and what would be the comparable figure if the couple were not married.
§ Mr. Robert SheldonFor 1975–76, the value at the basic rate of tax is £534.75. If the couple were not married the value would be the same, since the additional personal allowance would become due and the combination of this and the single person's allowance is equivalent to the married person's allowance.
§ Mr. Ralph Howellasked the Chancellor of the Exchequer what would be the net cost or gain to the Exchequer if the present system of single person's tax allowance, plus married couple's tax allowance, plus wife's earned income allowance, were replaced by an allowance at the present single rate for every adult citizen regardless of marital status.
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§ Mr. Robert SheldonTo replace the present allowances by a personal allowance of £675 for all single people and an allowance of £1,350 for all married couples—and giving age allowance for people aged 65 and over at rates of £950 for a single person and £1,900 for a married couple—would cost between £400 million and £500 million at 1975–76 levels of income and allowances. I regret that information is not available from which to estimate the cost of taxing husbands and wives as separate individuals each entitled to a single allowance.