Married tax break will leave over a million couples just £1.35 a week better off, new study shows
Andrew Grice has been Political Editor of The Independent since 1998. He was previously Political Editor of The Sunday Times, where he worked for 10 years, and he has been a Westminster-based journalist since 1982. His column, Inside Politics, appears in The Independent each Saturday.
Monday 21 October 2013
More than one million couples will be only £1.35 a week better off under David Cameron’s flagship proposal for a married couples tax allowance, according to new research.
The Resolution Foundation think tank found that two out of five couples who will pay £3.85 a week less tax from 2015, as the Conservatives announced last month, will see £2.50 of it “clawed back” when the new Universal Credit takes effect two years later.
This is because Universal Credit will be based on post-tax income, which also means the cost of the marriage tax cut to the Treasury will reduce over time.
Donald Hirsch, director of the Centre for Research in Social Policy at Loughborough University, said two thirds of the couples with children who will benefit from the new allowance would do so “only by a negligible amount – less than 20p a day.” He said: “This is an important consequence of the new arrangements which has barely been noticed.”
The Department for Work and Pensions insisted that all families entitled to both Universal Credit and the marriage tax allowance would see their income increase. It said transferable tax allowances were a progressive measure, with two-thirds of the benefits going to families in the lower half of the income distribution. It added: “Overall, more than 3m households will gain from Universal Credit by around £168 a month on average – with three-quarters of these coming from the bottom two-fifths of the income scale.”
- 2 Italian police 'reveal' what Jesus looked like as a young boy
- 3 General Election 2015: 14-year-old boy asks Nick Clegg – 'can you kill Katie Hopkins?'
Italian police 'reveal' what Jesus looked like as a young boy
Who should I vote for? The Independent quiz matches best political party for undecided voters ahead of the general election
Met Gala 2015: Beyoncé manages to out-skimp Rihanna, Miley and Kim Kardashian combined with near-naked ensemble
Syria's 'circle of hell': Aleppo residents describe children without heads, streets filled with blood and injuries never before witnessed by surgeons
General Election 2015: Photographic history of Bullingdon Club tracked down - including new picture of David Cameron in his finery
In defence of liberal democracy
Over 50,000 families shipped out of London boroughs in the past three years due to welfare cuts and soaring rents
EU asylum policy is 'a direct threat to our civilisation', says Nigel Farage
The Rothschild Libel: Why has it taken 200 years for an anti-Semitic slur that emerged from the Battle of Waterloo to be dismissed?
General Election 2015: UK will be 'run for the wealthy and powerful' if Tories retain power, Labour warns
Schools forced to act as 'miniature welfare states' with teachers buying underwear and even haircuts for poor pupils
£35000 - £40000 per annum: Ashdown Group: IT Project Manager - Birmingham - ...
£25000 - £30000 per annum + Uncapped Commission: SThree: Sthree are looking fo...
£20000 - £25000 per annum + commission: SThree: Real Staffing's Pharmaceutical...
£18000 - £25000 per annum + Commission: SThree: Are you great at building rela...