Sunday 30 September 2007

Tax Benefit Model Tables (2)

Now that you have had a chance to limber up with Table 1.1d, which Vindico kindly picked up on, let's stretch our legs a bit by doing a like-for-like comparison between three different tables and imagine a little love story, let's inject a bit of human interest...

a) Let's imagine a single young feller, on £500 a week, who lives with his parents and has a net income of £373 per week (Table 1.1a, page 11 of pdf, let's ignore housing costs). He falls in love with ...

b) Unemployed single mum, one kid, no child care costs, local authority tenant, who has a net income after housing costs of £126 (Table 2.1a, page 114 of the pdf),

c) He moves in and makes an honest women of her, prepared to turn a blind eye to the fact it ain't his kid, and sticks with his old job. The new household's net income, after housing costs is a princely £325 per week after housing costs (Table 1.5b, page 80 of the pdf).

Oh right, let's do the maths, their combined income has fallen by ... £174 per week...£9,000 a year ... Despite his parents are letting out his old room and our Sincere Step Dad has to live with all the nappies and stuff.

Let's face it, not going to happen, is it?

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