The treatment of cohabiting couples under social welfare provisions arises out of the 1989 Supreme Court decision in the Hyland case. This found that the social welfare provisions in question in that case were unconstitutional in that they treated a married couple living together less favourably than an unmarried cohabiting couple. The social welfare provisions now in operation explicitly give cohabiting couples the same treatment as married couples in determining the level of entitlement to benefits. The effect of the provisions, therefore, is to preclude cohabiting couples from receiving better treatment than married couples.
In relation to the tax position, there are no special income tax allowances for unmarried couples living together. In this context, it should be pointed out that tax law follows the general law relating to marriage. The basis on which the married person's tax free allowance (and double rate bands) is given derives from the Supreme Court decision in Murphy vs the Attorney General (1980) which held that it was contrary to the Constitution for a married couple to pay more tax than two single people living together.
I am conscious of the difficulties which can arise for cohabiting couples in certain circumstances because of the way they are treated by the two systems, in particular those who are not in a position to enter into legal marriages within the State. In this regard, I should add that an expert group on the integration of the tax and social welfare systems has been established by my colleague, Deputy Burton, Minister of State at the Department of Social Welfare. This group will, inter alia, be looking at the position in which cohabiting couples find themselves.
Furthermore, the Government is committed to holding a referendum on divorce. In these circumstances, it is difficult to foresee changes in tax law in this area, pending the outcome of the referendum. In relation to the letter mentioned in the question I am pleased to advise the Deputy that a reply issued on 10 November 1994.