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NewsCouples 'may be put off cohabiting and marriage due to finances'
Couples 'may be put off cohabiting and marriage due to finances'
Posted by Emily Jones
The existence of so-called "couple penalties" in the UK's tax and benefits system may be putting some people off getting married or cohabiting, a new report suggests.
Produced by the Institute for Fiscal Studies (IFS) and funded by the Nuffield Foundation, it claims that because much state support is means-tested against the joint income of a couple as opposed to against their individual incomes, people can lose out financially.
Because of this, some consumers may be less likely to move in with their other halves or tie the knot with them, the paper notes.
In addition, a number of people may be tempted to make fraudulent claims for benefits or tax credits.
The only way in which couple penalties can be eliminated is by assessing all benefits, tax credits and taxes against individuals' circumstances, the IFS says.
Following the general election, which is taking place on May 6th, government policy on this issue may change.
04/05/2010 07:41
News category: Family