August
11th
  2:01:18 PM

British tax and benefit system favours single parents

Does the British government actually not want some people to marry? It rather looks like it, judging by the financial penalty many couples face as a result of the tax they pay and the benefits they do not receive. In fact, it looks as though the government wants those who are married to split up.

An analysis of 98 couples with different earnings and numbers of children carried out by the charity Care showed that 76 of the couples would be better off if they split up and claimed welfare benefits that average £8007. Increasingly it is middle-income families where both parents work that suffer this “couple penalty”.

Here’s something that might not have occurred to you:

The benefit bias against couples has usually been thought to act to persuade people on the lowest incomes to stay single.

Many do stay single -- but they have children anyway, which entitles them to tax credits that take account of only one working adult per household.

Last year Labour MP Frank Field calculated that a single mother on the minimum wage with two children under eleven would get a weekly income of £487 if she worked 16 hours a week. A two-parent family with one earner would have to put in 116 hours of work on the same pay to get the same money.

It would be a poor sort of marriage that could break under the “pressure” of the partners receiving less in the way of tax breaks than the solo mum down the road (who has other disadvantages, to be sure) -- as the Daily Mail suggests -- but the messages being sent out are certainly not supportive of marriage as the best environment for children growing up.

The Conservative Party has promised to give back tax breaks to married couples.



 
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