Earlier this week the Christian charity Care published its third annual investigation into the perverse incentive structures that face low income couples. A former senior tax accountant to Price Waterhouse, Don Draper, examined the financial position of 98 couples and made the following conclusions:
"Where maintenance is not paid, 76 out of the 98 families considered would benefit financially if the parents lived apart. This represents a small increase from 75 families in 2007/8. At £68 per week, the penalty remains the same as in 2007/8. Where maintenance is paid, 74 out of the 98 families considered would benefit financially if the parents lived apart. This represents a significant increase from 65 families in 2007/8. Moreover, the cost of the penalty is £58, up from £48 for 2007/8."
David Cameron has pledged to progressively eliminate these penalties. With more children in two parent families in poverty than children in one parent families it is urgent that this problem is rectified.
