Tax 'penalises' two-parent families - News in brief - Evening Standard
       

Tax 'penalises' two-parent families

The Government's tax and benefits strategy to tackle child poverty "brutally discriminates" against two-parent families, a report has claimed.

The study by Labour MP Frank Field for think-tank Reform said the Government will miss its target of of halving child poverty by 2010/2011.

And the risk of poverty has barely changed for children in two-parent families, according to the report, Welfare Isn't Working: Child Poverty.

Half of all poor children are in working families despite attempts to help people work their way out of poverty, and the number of children in poor working households is at the same level as in 1995, it adds.

The report, co-authored by Ben Cackett for Reform, states a single mother working 16 hours a week gains - after tax credits - a total income of £487. But because the tax credits system does not make allowance for the second adult in the household, a two-parent family earning the minimum wage would have to work 116 hours a week to gain the same income.

The study also said that in 2004-05, two parents with two children had to earn £240 a week to lift themselves above the poverty line, while a single parent with two children had to earn just £76.

But campaigners refuted suggestions there was discrimination in favour of single parents.

One Parent Families chief executive Chris Pond said: "The figures fail to take account of the fact that working lone parents have only one wage and must cover childcare costs."

A Treasury spokesman said: "The Government has succeeded in arresting and reversing the long-term trend of rising child poverty and remains committed to its target of halving child poverty by 2010-11.

He added that as a result of Government measures, households with children in the poorest fifth of the population are, since 1997, on average £3,500 better off per year in real terms.

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