Increase married tax allowance where only one household member is working. Where both parties work and earn £25,000 a year each or £50,000 combined, they will pay £2,486 each or £4,972 combined. Where only one member of the household earns the same £50,000, with married tax allowance, pay £7,234.
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This means that a household where two people are working compared to a household where only one is working would be £2,262 better off per year because of income tax and how the married tax allowance is worked out.
Households where only one member is working are being penalised just because they have a single earner.
Single earner households are also less likely to be entitled to other benefits.