Tax Benefit Model Tables (3)

OK, it's Sunday evening, maybe I was going too fast with the last example, let's ask ourselves why single Mum became a single Mum in the first place ...

a) Before she had got pregnant, she was working 35 hours a week for the National Minimum Wage, let's call it 35 hours a week or £195 gross; she was renting privately and claiming housing benefit. Her net income, after housing costs was £102 per week (Table 1.1d, page 19 of pdf).

b) Once she's had the first baby, she gets her rent and Council Tax paid in full and ends up with a net income of £126 (Table 2.1b, page 114 of pdf). Hmmm, not much of an improvement then.

c) So time passes (about 9 months), she has another baby and whizzes to the top of the Council House waiting list, wa-hay, now she's hit the jackpot, her net income soars to £175 per week (Table 2.1a, page 114 of pdf) .

d) A bit more time passes, and along comes Shining Prince who earns £500 a week. Does she take his hand in marriage? Does she f***. Their combined income would fall from £548 (£373 for his net income, Table 1.1a, page 11 of pdf, let's ignore his housing costs + £175 for her net income, from above) down to £328 per week (Table 1.6b, page 92 of pdf).