Fight for the family vote

William Hague: Hoping to woo married couples with his tax plans

The Conservatives have now joined Labour in setting out their position on the family and taxation in an effort to find a formula which works and appeals to voters. The BBC's Roger Wicks looks at the background to the fight to be the party of the family in the run-up to the general election.

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The election stage is now set for a battle between Labour and the Conservatives over the issue of supporting children and families - or is it marriage? The family or families?

The problem with the battle is that no one can agree on language, let alone weaponry.

Government policies support all children and therefore all families, whether they are married couples with children, cohabiting couples with children or lone parents.

Child benefit, which they have increased, goes to mothers, regardless of income.

Chancellor targets child poverty

Labour's replacement for the married couples' allowance, the children's tax credit, goes to all families except higher earners.

In both cases, marriage does not come into it.

The Conservative focus is narrower - they want to be seen as the party for marriage.

Labour's decision to abolish the married couples' allowance in April 2000 gives them the opportunity.

Married couples' allowance: the return

Conservative leader William Hague has promised to bring back a form of the married couples' allowance (MCA) if the Tories win the next election.

The tax credit, worth up to £1000 per year, will apply to couples with children under 11, where one parent chooses to stay at home.

For example, if the husband earns £35,000 but his wife does not work, her tax-free allowance of more than £4,000 is currently wasted.

Family vote prized by all

The Tories propose that it would transfer to her husband - doubling his tax-free allowance.

This would give them an extra £998 a year - about £19 a week.

The party points out that there are 3.7 million married couples with children under 11.

It does not say how many would benefit.

It would be hard to do so because the Tories hope that the policy will act as an incentive - both to provide the woman with the chance to stay at home if she wishes and as an incentive for couples to marry.

We do know that most couples, at least to start with, will not benefit: 70% of mothers work.

The Conservative proposal is better targeted than the old married couples' allowance.

The new version will cost less than the old one - £1bn compared to £1.5bn in 1999/2000.

The old version went to 10 million couples but was worth only up to £198 a year.

Its value decreased under previous Tory governments as well as over the course of this Parliament.

The Opposition leader's policy is worth up to £1,000 a year.

The children's tax credit

The launch of the children's tax credit in April replaces the married couples' allowance.

It will be worth up to £442 a year - £8.50 a week - for families with one or more child under 16 and will be paid to around five million families.

A rise to £10 per week is considered likely in this year's budget on 7 March.

Government policy on children has two objectives: eliminating child poverty and supporting all families with children.

Policies involve both direct support to families (through benefits) and creating work incentives (tax credits).

The new children's tax credit will be "tapered away" from higher rate taxpayers.