Politics
Tuesday March 4, 2008
UK Labour's Tax and Benefit System Penalizes Families that Stay Together
Conservative's Cameron says, "We have the highest rate of family breakdown in Europe. And we have the worst social problems in Europe.
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By Hilary White
LONDON, March 4, 2008 (LifeSiteNews.com) - Under current UK rules for benefits and tax exemptions, three out of four families receiving state benefits would be financially better off splitting up than staying together. The Daily Mail reports that under the system set up by the Labour government, a typical low or middle income family would be £69 a week better off apart than together.
A study showed that couples who stay together were 10 % worse off than single people last year. The second annual report by the charity Christian Action Research and Education, (CARE) said that "the couple penalty" has increased significantly since 2006/7. The group warns that the financial advantage of living apart is likely to be even higher in the future as a result of changes to benefit rules already announced.
The average annual cost to the Treasury in additional tax credits and benefits for separated couples is now estimated to be £7,732 compared with £6,954 in 2006/07 - an 11% increase.
Nola Leach, the chief executive of CARE, told the Daily Mail, "The situation appears to have deteriorated over the last 12 months and, thanks to recent government commitments, will become significantly worse in the years to come unless the Treasury has a change of heart."
Research steadily shows that children in single parent homes are significantly disadvantaged compared to those who live with both father and mother.
Dr. Dan Boucher, CARE's director of parliamentary affairs said, "It is very concerning that, far from addressing the problem of the couple penalty, government has actually allowed it to get worse over the last year."
He warned that policy commitments already made by the Labour government will "significantly exacerbate" the incentive for single people with children "not to re-partner".
David Cameron, leader of the opposition Tories has pledged to make the "couple penalty" a target of policy in a Conservative government. Cameron connected the problem of family break-up with social unrest.
In response to a report suggesting tax breaks for married couples, Cameron said last year, "Britain is almost the only country in Europe that doesn't recognise marriage in the tax system. And the benefits system actively discourages parents from living together."
"We have the highest rate of family breakdown in Europe. And we have the worst social problems in Europe. Don't tell me these things aren't connected."
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