Lone parents including widows with children have, at present, the single person's allowance of £4,200 at the standard rate of tax plus an additional allowance of £4,200, of which £3,150 is available at the marginal rate of tax. From 6 April 2000, the lone parent's allowance will be increased by £500 to £4,700 at the standard rate, giving lone parents the same personal allowances as married couples, that is, £9,400 in total, all of which will be available at the standard rate of tax. To ensure no loss to lone parents on the higher rate of tax, as a result of standard rating, their standard band will be increased to £20,150, that is £3,150 higher than the band for single taxpayers.
In addition to the specific measures I have outlined, lone parents will benefit from the general improvements which I announced in my budget speech, namely: the increase in the personal allowances from £4,200 to £4,700 at the standard rate; the reduction in both the standard and top rates of tax by 2%; and the increase in the standard rate band for single persons from £14,000 to £17,000.
I have no plans to introduce any further measures for lone parents in the upcoming Finance Bill.