Married People: Tax Allowances

HM Treasury written question – answered on 29th March 2017.

Alert me about debates like this

Photo of Ranil Jayawardena Ranil Jayawardena Conservative, North East Hampshire

To ask Mr Chancellor of the Exchequer, how much his Department spent on marriage allowance in (a) 2015-16 and (b) 2016-17.

Photo of Ranil Jayawardena Ranil Jayawardena Conservative, North East Hampshire

To ask Mr Chancellor of the Exchequer, how much his Department has allocated for marriage allowance in (a) 2015-16, (b) 2016-17 and (c) the next three years.

Photo of Ranil Jayawardena Ranil Jayawardena Conservative, North East Hampshire

To ask Mr Chancellor of the Exchequer, what the income decile profile is of claimants of (a) marriage allowance and (b) married couple's allowance.

Photo of Ranil Jayawardena Ranil Jayawardena Conservative, North East Hampshire

To ask Mr Chancellor of the Exchequer, how many people in receipt of universal credit (a) are eligible for and (b) claim the marriage allowance.

Photo of Jane Ellison Jane Ellison The Financial Secretary to the Treasury

The Marriage Allowance was introduced in 2015-16 to recognise the importance of marriage in the tax system. Around 1.8m people have claimed the allowance to date.

Our current best estimate assessment of the initial cost of this allowance is £140m in 2015-16, but this does not include the impact of any expected future claims, which can be backdated to this year. The total cost of this allowance is forecast to rise to £385m in 2015-16 once these claims are taken into account.

An estimate of the initial cost of this allowance for 2016-17 will not be available until the end of the tax year. We forecast an eventual cost to the exchequer of £425m, once all backdated claims are taken into account.

HM Treasury does not hold information relating to the income deciles of claimants or successful applicants of the Marriage Allowance. Previous analysis of the total eligible population has shown the majority of the benefits of this policy go to the bottom half of the income distribution. Only basic rate taxpayers and non-taxpayers will benefit.

HM Treasury does not hold information about either how many individuals claiming Universal Credit are eligible for the Marriage Allowance, or how many are in receipt of it.

The income decile profile of claimants of Married Couple's Allowance is set out below for the latest year available (2014-15):

Percentage

Percentile Groups (ranged on total income before tax)

0-10%

10-20%

20-30%

30-40%

40-50%

50-60%

60-70%

70-80%

80-90%

90-100%

2014-15

0.2

0.5

16.9

19.3

15.7

12.7

11.5

9.9

6.9

6.5

These estimates are based upon the 2014-15 Survey of Personal Incomes (SPI).

Does this answer the above question?

Yes0 people think so

No0 people think not

Would you like to ask a question like this yourself? Use our Freedom of Information site.