Sunday 28 September 2008

Labour Government to offer cohabiting parent-couples £224.56 per week!

"Wot?", I hear you cry, "For doing what?"

Ahem, they can get that money if they ... er ... split up. Or at least pretend to split up.

So here are the figures from the DWP's updated Tax benefit Model Tables, as promised a couple of days ago:

1. A cohabiting couple with two kids, one parent (let's assume Dad) earns £500 a week gross (all figures in this example are weekly), Mum is at home with the kids so there are no childcare costs, living in council housing have a net income after tax, benefits and housing costs of £345.59 (Table 1.6b).

If Dad 'moves out' ...

2. The newly single single mother with two kids, no childcare costs living in council housing has a net income, i.e. benefits minus housing costs of £190.39 (Table 2.1a)

3. Newly single Dad has a net income after tax/NI of £379.76 before housing costs (Table 1.1b) of £379.76. In practice he doesn't have any housing costs, because he stays in the family home - the couple just have to quickly hide all his gear should council snoopers pop round.

Total income of newly 'separated' family = £570.15. That's £224.56 more than what they were on before. I rest my case.

5 comments:

Anonymous said...

Oh come on, Mark - they are only better off if they commit fraud - and it would not be easy to just 'hide their stuff' from inspectors.

With the Tory party funded by those prospering in other peoples misery (trading in short lending) - that is the real scandal you should be focusing on.

Mark Wadsworth said...

1. Well, about 200,000 'lone parents' are committing this fraud, which is sufficient to bring The Welfare State into total disrepute.

2. There are two sides to short selling - stock lending and stock selling. And to be fair, David Cameron's cunning plan for sorting out insolvent banks would probably result in fewer job losses, a lower cost to the taxpayer and lower returns to speculative investors. What's not to like?

marksany said...

I love welfare porn!

This makes me think I could give up work.

What pre-tax earned income would you need to clear £570.15 per week, after housing costs? Approx £42k/year ?

Mark Wadsworth said...

M, Table 1.6b says £895-ish a week = £45,000, incl. child benefit etc.

Nick Drew said...

Mr Harding - VERY naive, I'm afraid: a significant number of council tenants don't even live in their council dwelling, they sub-let illegally, & for the most part get away with it (councils don't want to know provided the rent is being paid)

Mark - do you have a channel for systematically forwarding your stuff to Osborne et al ? because you should (just against the remote possibility that they don't read the blog every day ...)