Allow households to choose whether to opt for taxation using personal thresholds or 'family thresholds', where personal thresholds are combined, as families with one higher rate earner pay tax at a higher rate even if their overall income would be within a combined standard rate tax threshold.
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Families can be taxed more as a household because an individual may have a higher salary, for example:
Family 1 has 2 parents, 1 earning £8,000 a year and another earning £60,000. Family 2 has 2 parents, both on £35,000 a year.
Family 1 does not benefit from Child Benefit payments as they are deemed to earn too much, and have almost £10,000 taxed at the higher rate tax, whereas family 2 are able to fully benefit from Child Benefit and pay less in tax than family 1 but have a higher gross annual income.