I ask this because that was one of the first statements you made as prime minister. How can we ever be the most family friendly country, when all you are doing is forcing cut and increase, on us week after week? I don’t think you realize the pressure you are putting on families, and the strain of there marriages or relationships, most sensible people know that the biggest argument within a family is finances, and the pressure for the average working class family at this moment is almost at breaking point, when are you and your sidekicks going to realise,that to have a family friendly country, you need a family friendly government.
Middle class families in which one parent stays at home to look after the children pay more than a third extra in tax in Britain than those in other Western countries, a report has found.
Researchers for CARE, a Christian social policy charity, said the tax system was “unfriendly to families” and was going to get worse. They said that “those in the middle who are not rich are shouldering a heavy burden”, despite David Cameron’s promise to make Britain the most family-friendly country in Europe.
The research will increase the pressure on George Osborne, the Chancellor, to introduce tax breaks for families in this month’s Budget. The charity recommends introducing transferable allowances for married couples, which were outlined in the Coalition agreement. The report, “The Taxation of Families 2009-10”, is a detailed assessment of the impact of the tax system on families compared with 33 other countries.
About 2.4 million children in Britain live in households where one parent is in full-time work and one is not working.
During the past few years, the report found, the tax burden had shifted markedly from single people without dependants to families. While the tax burden on most families and individuals was “not out of line with that in other countries”, it found that “this is not the case with one-earner married couples with children”.
British single-earner families with two children on £33,745 a year were paying 39 per cent more in tax than comparable families from Organisation for Economic Co-operation and Development (OECD) countries.
It warned that this disparity would worsen to 50 per cent by 2012-13. The Coalition’s controversial decision to axe child benefit for families where one parent earns more than £42,000 a year was partly to blame.
From 2012-13, one-earner couples with two children who earn slightly more than £42,000 would be hit with an effective 25 per cent increase in their tax burden, compared with single people with no dependants on the same wage. The withdrawal of child benefit would have little effect on the richest households in the UK, but would impact on those around the middle and the upper-lower half of income distribution, CARE said.
Nola Leach, the chief executive of CARE, said: “The treatment of married couples on modest and average incomes in the tax system remains unfair and out of line with the rest of the OECD. This failing is damaging family life.”