780. Deputy Naoise Ó Muirí asked the Tánaiste and Minister for Finance if he will examine the absence of any tax support for grieving parents who were cohabiting at the time of their partner’s death; if he will consider a review of the widowed parent tax credit to assess whether its eligibility criteria adequately reflect modern family structures; and his plans to address this policy gap in order that bereaved cohabiting parents with dependent children are not left without comparable support. [62314/26]

In circumstances where a couple is cohabiting, rather than married or in a civil partnership, they are treated as separate and unconnected individuals for the purposes of income tax. Each partner is a separate entity for tax purposes, therefore, cohabiting couples cannot file joint assessment tax returns or share their tax credits and tax bands in the same manner as married couples.

The basis for the current income tax treatment of couples derives from the Supreme Court decision in Murphy vs. Attorney General (1980). This decision was based on Article 41.3.1 of the Constitution where the State pledges to protect the institution of marriage. The decision held that it was contrary to the Constitution for a married couple, both of whom are working, to pay more tax than two single people living together and having the same income. The Constitutional protection of Article 41.3.1 does not extend to non-married couples.

Section 463 of the Taxes Consolidation Act (“TCA”) 1997 provides for the widowed parent tax credit. The tax credit is available for widowed parents and surviving civil partners, with a qualifying child or children, following the death of a spouse or a civil partner, and so in line with treatment of married couples and civil partners across the income tax system, is not available to cohabiting couples.

However, bereaved partners with children in the years following the year of bereavement can avail of the single person child carer credit (“SPCCC”) under section 462B TCA 1997, where all of the conditions of the provision are met. The SPCCC amounts to €1,900 for the 2026 year of assessment and provides for an increase to the standard rate band of €4,000, bringing the total standard rate band available to €48,000 for the 2026 year of assessment.

Further guidance on the application of the SPCCC can be found in Tax and Duty Manual Part 15-01-41, at the following link: www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-15/15-01-41.pdf

Bereaved partners will also benefit from the income tax changes made over successive Budgets by the previous Government. For example, to ease the burden facing average and middle-income earners, the entry point to the higher rate of income tax for all earners has increased substantially by €8,700 or c. 25 per cent over the last four budgets, and the main tax credits have also been increased by €350, or c. 21 per cent, over this period. Furthermore, in line with Government policy of ensuring full-time workers on the minimum wage remain outside the charge to the top rates of USC the ceiling of the 2 per cent USC rate band was increased by €6,898, or 34 per cent, from 2020 to 2025. Budgets 2024 and 2025 also cumulatively reduced the 4.5 per cent rate of USC to 3 per cent.

As the Deputy will appreciate, decisions regarding taxation measures are normally made by the Government in the context of the annual Budget and Finance Bill. Such decisions must have regard to available resources and the sound management of the public finances.