Cameron stands up for marriage

Social failure is costing taxpayers more than £100bn a year, according to a recent report. And the Tories plan to tackle the 'breakdown' with some controversial changes to the tax and benefits system.

Social failure is costing taxpayers more than £100bn a year, a fifth of all Government spending, it was claimed this week. At the heart of a 671-page report on breakdown' Britain, by Iain Duncan Smith's Social Justice Commission, lies the belief in a "direct causal link between the number of children brought up by unmarried couples and problems of instability, crime, educational underperformance and drug dependency", said Will Woodward in The Guardian.

Recommendations include a new tax on alcohol and doubling the Carers' Allowance, but the report's most "eye-catching suggestions" involved "tearing up the tax and benefit system to swing the support of the state firmly behind couples", said Benedict Brogan in the Daily Mail. It calls for an end to the "couple penalty", which gives a single parent the same benefits as couples, by topping up the cash offered to couples in the Working Families Tax Credit to about £2,000. It also proposes allowing non-working spouses to transfer their personal allowance of £5,025 a year to their working partner, worth £20 a week. The combined cost of the proposals is put at £6.2bn.

Try 6 free issues of MoneyWeek today

Get unparalleled financial insight, analysis and expert opinion you can profit from.

Start your trial
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up for MoneyWeek’s free twice-daily newsletter.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Sign up
Latest Videos FromMoneyWeek
MoneyWeek

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.