I announced on Wednesday, 8 December 1999 that the Government has decided to bring forward a £3,000 per annum tax allowance at the standard rate of tax in respect of spouses of married one income families who work in the home caring for children, the aged or handicapped persons. This fulfils a promise made by the Government in the joint Fianna Fáil and Progressive Democrats statement issued prior to the June 1997 general election of an allow ance, set then at £2,000, for families in these circumstances.
This undertaking was always on the list of measures to be pursued in the Government's two remaining budgets but has been implemented now to recognise the role of spouses who work in the home and to balance the tax relief measures announced in the budget on 1 December 1999 which addressed the position where both spouses were in paid employment.
The specific details of the operation of the scheme will be set out in the Finance Bill to be published next February. This tax relief will be worth up to £660 per annum to one income married families on the standard and higher rate of tax at all income levels but will be of grater proportionate value to lower income families because it is standard-rated. The full year cost is estimated at £125 million.