Monday, 1 October 2007

Tax Benefit Model Tables (4)

I was just checking my last couple of posts for accuracy, and another thing caught my eye.

Per Table 2.1a (page 114 of pdf), if unemployed single women has no kids, her net income is £59 a week, with one kid it's £126 and with two it's £175.

So that's a baby bonus of £67 for the first kid and £49 for the second one.

Let's compare that with baby bonus for married couple, also LA tenants (for consistency), where hubby is earning £500 and wife stays at home, even before they have kids (a highly unlikely scenario - nearly all such women have a job). Before they have kids, their net income is £304 after housing costs, Table 1.4b (page 68 of pdf). With one kid, we skip to Table 1.5b (Page 80) and their net income after housing costs is £324 per week. With two kids, Table 1.6b (page 92) their net income is £328.

So that's a baby bonus of £20 for the first kid and £4 for the second.

How about splitting the difference and making Child Benefit a flat £34 per child and scrapping Child Tax Credits, as recommended by the Citizen's Income Trust?

Is it any wonder that the number of children born out of wedlock has risen to over 40%? Sure a lot of these are cohabiting, but if you're not married it's easier to pretend you're not cohabiting, so the Mum can get her snout in the welfare trough.

Right, that's enough welfare porn for the time being!

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