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Dáil Éireann debate -
Wednesday, 15 Dec 1999

Vol. 512 No. 7

Written Answers. - Single Parents' Allowances.

Denis Naughten

Question:

128 Mr. Naughten asked the Minister for Finance the plans, if any, he has to provide additional funding for single parents in the forthcoming Finance Bill in view of the additional expenses incurred in taking up employment; and if he will make a statement on the matter. [27262/99]

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.

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