Charity calls for budget to protect families
The Family and Parenting Institute has called on the Chancellor to avoid delivering a ‘Break-Up Budget’ on Wednesday.
The charity, which aims to make the UK a better place for families and children, fears that a budget which puts family incomes under further pressure could threaten family life.
The divorce rate in England and Wales increased by almost 5% in 2010, the first time it has increased for eight years, and with financial pressures shown to increase conflicts in families, experts pointed to the UK’s austerity measures as a causative factor.
Dr Katherine Rake, Chief Executive of the Family and Parenting Institute, said: “Families are deeply anxious over the government’s austerity programme.
“They are being hit by a raft of painful measures, including changes to tax credits, the scrapping of the Child Trust Fund, the end of universal Child Benefit, and the proposed housing cap.”
A report by the Institute for Fiscal Studies, commissioned by the Family and Parenting Institute, found that the average family with children faces a 4.2 per cent fall in income by 2015/16.
This represents an annual income drop of £1,250 for a couple with two children.
In comparison, a couple without children will see a reduction in annual income of just £215.
A Treasury spokeswoman said: “If the deficit is not tackled now, the impact on families will be worse.”
At the other end of the scale, The Telegraph revealed today that the Chancellor will reduce top rate of tax from 50p to 45p in Wednesday’s budget.
The Chancellor is expected to report that the 50p tax rate is damaging the UK’s economy by deterring investors and entrepreneurs.
The 45p rate will be introduced in April 2013, and is expected to raise more money for government coffers than the higher rate, because fewer people will avoid paying it.
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