§ Mr. Raison
To ask the Chancellor of the Exchequer (1) what is his best estimate of the saving from abolishing the married couple's allowance for non-pensioners in 1990;
(2) what is the expected cost of the married couple's allowance in 1990–91.
§ Mr. Major
The direct revenue cost of the married couple's allowance in a full year at 1990–91 levels of income is estimated to be £5 billion. If the allowance were to be given only to married couples where either the husband or wife was aged 65 or over, there would be a saving of about £4.5 billion.
Estimates are based on a projection of the 1987–88 survey of personal incomes, and, in line with Autumn Statement forecasts, assume 7.5 per cent. indexation of allowances and the basic rate limit; all estimates are provisional.