The proposals were formulated by the Law Commission in July 2007 after a two year consultation. It had been clear for some years that the existing law, which was not designed for cohabitants, was uncertain and difficult to apply in these circumstances. The Law Commission also felt it led to unjust results, although opinion on that point is deeply divided: many consider that those who choose not to marry or enter into civil partnerships should not be treated in law as though they had done so.

The Commission's report, Cohabitation: the financial consequences of relationship breakdown, suggested an intermediate regime allowing claims on a former cohabitant's property only if the pair had had a child together or lived together for several years. Courts would make awards based only on each ex-partner's contributions, and those who wished to opt out could do so.

However, both the previous administration and the current one treated the report with circumspection. Both said they would not begin reform until they had examined the effects of a similar law that was actually enacted in Scotland in 2006.

Now the coalition government says it has seen research on the outcomes of the Scottish experiment, and that it does not justify similar reform in England and Wales. In a written ministerial statement, justice minister Jonathan Djanogly said: "The findings ... do not provide us with a sufficient basis for a change in the law. Furthermore, the family justice system is in a transitional period, with major reforms already on the horizon".

A Justice Ministry spokesperson noted it was already possible for cohabiting couples to draft wills and enter into cohabitation agreements to govern their property rights, if they so chose. The courts in England and Wales recognise such agreements as legally binding, says the Law Society.

So reform of cohabitation law has been ruled out, at least for this parliamentary term, which has already seen plenty of disagreements of principle between coalition members. However, the Law Commission's head, Elizabeth Cooke, appears to believe reform has merely been postponed.

"We hope that implementation will not be delayed beyond the early days of the next Parliament, in view of the hardship and injustice caused by the current law", she said. "The prevalence of cohabitation, and of the birth of children to couples who live together, means that the need for reform of the law can only become more pressing over time".

Sources: Family Law Week, Ministry of Justice, Law Commission, Law Society, Step Journal