Mr Major’s Written Parliamentary Answer on the Married Couple’s Allowance – 20 December 1989

Below is the text of Mr Major’s written Parliamentary Answer on the Married Couple’s Allowance on 20th December 1989.

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.