Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment he has made of the potential merits of extending (a) the marriage allowance and (b) other benefits to long-term cohabiting couples.
The Government introduced the Marriage Allowance in April 2015. Every time the personal allowance increases, the Marriage Allowance automatically becomes more generous.
The increase to personal allowance to £12,500 means that, from April this year, eligible couples will be able to transfer £1,250, compared to £1,060 in 2015-16. This means that in 2019-20, eligible couples can receive a tax reduction of up to £250, or £1,150 if they make a backdated claim to 2015-16.
The Marriage Allowance was introduced specifically to recognise marriage and civil partnerships in the tax system. Therefore, the Government has made no assessment of extending Marriage Allowance to cohabiting couples.
The majority of benefits are paid on a household basis and the Government currently has no plans to change this.