What future for the family?

Early last week the Christian charity CARE published the results of its third annual investigation into the perverse incentive structures that face low income couples.

A former senior tax accountant with Price Waterhouse examined the financial positions of 98 couples. It is widely accepted that there is an incentive for such couples to live apart. He discovered that this has grown larger.

In cases where no maintenance is paid 76 out of 98 families would be better off financially if they lived apart. It was 75 out of 98 the previous year, but the actual penalty was the same in both years, or £68 per week.

In cases where maintenance is paid, 74 out of 98 would be better off if they lived apart. This represents a significant increase from the previous year when only 65 would have been better off apart. The penalty cost has also increased, from £48 per week to £58.

Other statistics have revealed that there are more children in two parent families in poverty than children in one parent families. This is an important blot on our welfare system, and something must be done.