Skip to content. Skip to navigation

FreeThink

Sections
Personal tools
You are here: Home The FreeThink Blog Archive 2007 October 03 TAX AND SYMBOLS

TAX AND SYMBOLS

by chris bose last modified Wednesday, 3 Oct, 2007 12:40
Filed Under:

Kids are lonely and unhappy, fat and bullied. Half don’t eat breakfast, a third of under-16s regularly drink, nearly four in ten 15-year-olds have had sex. About 4,000 or 8,500 children (depending on which spokesman you were listening to) were admitted to hospital with alcohol-related illness, some 630,000 prescriptions for antidepressants are handed out to children annually and 11.2 per cent of girls self-harm. http://http://www.timesonline.co.uk/tol/comment/columnists/alice_miles/article2577790.ece

The Conservatives' less than sanguine view of childhood! Even David the optimist Cameron would be hard pressed to see much positive amongst this salvo of failings. The Conservative solution to this crisis of childhood-more outside play. As Alice Miles in The Times puts it The Conservatives’ childhood agenda has shrunk from revolution to roundabouts. Well almost, there is another Conservative response, which is to reward couples with children with extra tax credits. As Alice Miles argues Cameron’s conservatives have marshalled this proposal towards a caricatured problem of the government’s policy. As with most caricatures the version is less than entirely accurate.

It is not the case that couples who stay together are penalised and paid less in working tax credits than lone parents, an error parroted by people who are too well paid to know. Both families get the same. The Tories have been using a grossly misleading comparison, first cited by the Labour MP Frank Field, to back up their case. Mr Field has said that a single mother working 16 hours a week, after tax credits, gains a total income of £487 a week, but a two-parent family earning the minimum wage has to work 116 hours to gain the same income.

Unsurprisingly the Conservative’s inaccurate diagnosis of the policy has blunted the effectiveness of their remedy.

The only problem addressed by Mr Cameron’s policy is this: if you are a couple with children living together, but you lie about the fact, then you are up to £1,700 a year better off from the working tax credit, as one of you can claim a lone parent top-up. This encourages people to lie about their living arrangements when they claim the tax credit. So Mr Cameron wants to offer the extra £1,700 to couples with children who admit to living together. That’s it. At most it will stop some low-earning couples who live together but lie about it from lying about it in future.

See? It doesn’t make any sense as a “boost for marriage”. You don’t have to get married to be eligible. And if you are already married, well, you don’t need the encouragement then, do you? You’re just being given an extra £30 a week. Nice, but why? If you want to raise children out of poverty, as the Tories claim, then putting extra money into working tax credit for couples is about a third as effective as putting it into more child tax credit for all children, according to the Institute for Fiscal Studies.

So why when there are more effective policy tools have the conservatives stuck to the guns-in a word symbolism. As Miles recognises the policy signifies that Tories believe in two-parent families. In short it might not be the most efficacious policy, but it does chime with the Tory faithful.

 

Tag cloud
Think Tanks | Opinion Polls | Devolved power | Hunting | Housing | Early years | Internet politics | Middle East | The Centreground | Women in Politics | Trident | Leadership | Defections | Nick Clegg | French elections | Next General Election | Higher Education | Youth | Foreign Policy | Military | Localism | Public Service Reform | Planning | Britain After Blair | Libertarian | right-wingers | Commentariat | Left/Right | Prisons | John Reid | Home Office | Liberal philosophy | Licensing laws | Islam and the UK | Coalitions | Labour positioning | Local elections | Hung Parliament | Neocons | Population | Anti-social behaviour | Aspiration | Positioning | Budget | Mark Oaten | Journalists | Education | Brighton Conference 2006 | Prostitution | Constitutional reform | Welfare | Cameron | Welsh politics | Legislation | Environment | Short-termism | European politics | British identity | Drugs | Ming Campbell | Immigration | House of Lords | Iraq | Lib/Lab | Apathy | CentreForum | Lib Dem policy | Courts and the law | media ownership | Family | North/South | Rebellions | Michael Gove | Nuclear power | Child protection | American elections | David Miliband | Atlantic politics | London elections | Globalisation | Proportional Representation | Academies | Taxation | Zimbabwe | NHS | Spin | Blogging | Gordon Brown | Far right | General Election | personality politics | Inequality | Demography | Long term care | Scottish politics | Steve Webb | Lib/Con | Orange Book
Log in


Forgot your password?
New user?
Blog Roll
Liberal Review
Liberal England
Love and Liberty
Lib Dem Voice
Liberal Polemic
Alex Foster
Alan Beddow
Alex Wilcock
Anders Hanson
Andrew Garner
Andrew Lewin
Andy Mayer
Ann Garner
Blogging 4 Wycombe
Chris Black
Chris Jenkinson
Chris Jennings
David Morton
David Rundle
David Spender
Duncan Borrowman
Edis Bevan
Heather Quinton
Iain Sharpe
Ian Ridley
Jock Coats
John Hemming
Jonathan Calder
Liberal Democrat Voice
Linda Jack
Louise Alexander
Lynne Featherstone
Mark Young
Millennium Elephant
Ming Campbell
Nick Barlow
Peter Black
Peter McGrath
Peter Pigeon
Richard Baum
Richard Gadsden
Richard Thomas
Sajjad Karim
Simon Isledon
Stephen Glenn
Will Howells
Archives
Syndication
Atom
RDF
RSS 2.0
Powered by Quills