Oral Answers to Questions

Ranil Jayawardena Excerpts

Tuesday 1st December 2015 Commons Chamber

[Mr Ranil Jayawardena (North East Hampshire) (Con)]

15. What fiscal steps he is taking to help people to keep more of the money they earn.

[The Financial Secretary to the Treasury (Mr David Gauke)]

The Government have committed to raise the personal allowance to £12,500 and the higher-rate threshold to £50,000 by the end of this Parliament. In the summer Budget, the Government took the first steps towards meeting those commitments by increasing the personal allowance to £11,000 and raising the higher-rate threshold to £43,000. In 2016-17, 29 million people will pay less tax after those changes, and 570,000 will be taken out of income tax altogether.

[Mr Jayawardena]

Will the Minister outline what measures have already been taken to help married couples to keep more of what they earn? Would he consider helping stay-at-home parents further by increasing the marriage allowance for all taxpayers?

[Mr Gauke]

Since 2015-16, married couples and civil partners have been able to transfer 10% of their personal allowance to their spouse. The Government expect this to benefit up to 4 million couples by up to £212. This will increase in proportion to any increases in the personal allowance, which the Government have committed to raise to £12,500.