PRESS RELEASE - Social policy charity CARE has today welcomed George Osborne’s announcement on transferable allowances for married couples which will be in place from April 2015.

Speaking from Manchester immediately after the speech, Dan Boucher, Director of Parliamentary affairs for CARE said:

“The Chancellor’s announcement is excellent news.”

“In a context where family breakdown costs the UK economy a staggering £46 billion per annum it is entirely right that the government use the tax system to support marriage and stability.”

“A child born to cohabiting parents has a nearly one in two chance of finding themselves in a single parent family by the time they are 5, whereas a child born to married parents has a one in 12 chance of finding themselves in such a situation.”

“If there is anything extraordinary about today’s announcement it is that since 2000 our tax system ever failed to recognise marriage.”

“Only 20% of people living in OECD countries live in countries that fail to recognise marriage in the tax system. The vast majority of that 20% live in just two countries Britain and Mexico.”

He added: “We are particularly pleased that the amount of the allowance that can be transferred has increased from the £150 announced in April 2010 to £200. This is an important foundation on which to build.”

“However, as research that we published earlier this month shows, it is crucial that we move towards an allowance that is fully, rather than partially, transferable if we are to address the unfairness currently experienced by one-earner married couples. The Chancellor’s announcement must be the start and not the end.”

<Ends>

For interviews with Dan Boucher or for further information please contact James Mildred on tel: 07581 153693 or email: james.mildred@care.org.uk

Editors Notes:

1. CARE first recommended the introduction of a transferable allowance in 2007. This recommendation was then adopted by the Conservative Party Social Justice Commission chaired by Iain Duncan Smith.
2. On Sunday 22 September CARE was a co-signatory to a letter to the Sunday Telegraph calling on the Government to provide a more generous transferable allowance than the £150 package announced in April 2010: http://www.telegraph.co.uk/news/politics/10325815/Married-tax-breaks-will-be-empty-gesture-unless-they-are-more-generous.html
3. CARE has recently published a major report entitled ‘Independent Taxation – 25 years on’, with a foreword by former Chancellor Nigel Lawson calling, amongst other things, for the introduction of a transferable allowance. There will be a seminar in Parliament chaired by Lord Lawson on 23 October to examine the findings of the report and to consider the best way forward. ‘Independent Taxation – 25 years on’ can be accessed online.
4. CARE (Christian Action Research and Education) is a well-established mainstream Christian charity providing resources and helping to bring Christian insight and experience to matters of public policy and practical caring initiatives. CARE is represented in the UK Parliaments and Assemblies, at the EU in Brussels and the UN in Geneva and New York. CARE is a company limited by guarantee registered in England and Wales at 53 Romney Street, London, SW1P 3RF, Company No: 3481417, Charity No: 1066963, Scottish Charity No: SC038911