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Chief secretary to the Treasury Andy Burnham signalled a shift in government thinking after years of criticism that Tory proposals to incentivise marriage discriminated against the children of separated or cohabiting parents.
The Treasury quashed suggestions that married couples could be in line for a tax boost, insisting there was no change of policy.
But Burnham's comments appear at odds with previous statements. He said: "I think marriage is best for kids. I don't think the tax system is the reason people get married, nor is it the reason people stay together... but it's not wrong that the tax system should recognise commitment and marriage."
Tory leader David Cameron has made tax incentives for marriage one of the central pledges of his pitch for power. But ministers have attacked the strategy because it would hit children whose parents are not married.
Prime Minister Gordon Brown even quoted the Bible in what was taken as criticism of the approach in his speech to the Labour Party conference earlier this month. He said: "I say to the children of two-parent families, one-parent families, foster-parent families; to the widow bringing up children: I stand for a Britain that supports as first-class citizens not just some children and some families but supports all children and all families."
But Burnham, one of the government's rising stars, said: "In an abstract way I think it's better when children are in a home where their parents are married."
The Treasury issued a statement this afternoon saying Burnham had been referring to inheritance tax changes in Tuesday's pre-Budget report.
A move to allow married couples and civil partners to pass on their tax-free allowances will effectively double the threshold for those who are married. A spokesman said: "He did not indicate any changes to government policy and his views are entirely consistent with previously stated policy."
But shadow chancellor George Osborne
said: "For two years David Cameron has been making the case for recognising marriage in the tax system and Gordon Brown has been attacking him for it.
"Now one of his minions appears to say we are right. This is further confirmation that we are in command of the agenda in British politics and the government doesn't know whether it is coming or going."
Burnham's comments drew sharp criticism from the Labour left, with Socialist Campaign Group MP Austin Mitchell telling him to stop giving credence to Conservative proposals.
Mitchell said: "This is essentially a Tory policy.
I think, personally, it's a non-starter."
By DANIEL BENTLEY
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