Half a billion pounds is to be spent under Conservative plans to create a marriage tax incentive. This seems an extraordinary waste of public money at a time when there are huge pressures on budgets for public services, not to mention the deficit.
So what is behind the policy? David Cameron has said it is designed to “send a signal” to support married couples. But the signal it sends out heaps hurt on some perhaps unintended targets.
70 widows have written to the Telegraph today, saying these proposals are “financially and morally unjustifiable”. It seems highly unfair that working widows should be judged as less deserving of support through this policy than couples.
There is a rich diversity of families in the UK today. The traditional family model, where one partner goes out to work and the other stays at home, is not something the state can or should influence. Families and relationships come in all shapes and sizes. The role of the state is surely not to judge, but to support those with greatest need. Most people would not benefit under this policy including:
– the very poorest, where both partners earn under £6,555
– widows who have lost their partners
– single mums and dads
– people seeking to leave violent or unhappy relationships
– couples where both partners are in work
– those paying higher rate tax
£3 a week is hardly enough to encourage people to get married, given the average cost of a wedding today. The Institute of Fiscal Studies’ analysis of the policy said:
“The incentives to marry – or not to divorce – provided by a policy whose maximum benefit is £150 a year must surely be weak relative to the other costs and benefits involved.” Institute for Fiscal Studies, 9th April 2010.
There are surely higher priorities for a responsible government placing a levy on the banks. Half a billion pounds could make a real difference to supporting children in lower income families, through SureStart or children’s centres; support into relationship and bereavement counselling; or into education and healthcare. In this fiscal climate, a responsible government would not spend £550 million of taxpayers’ money on ‘sending a signal’.
To coincide with the letter, a film criticising the Conservative party’s married tax proposals has also been released today. The film features TV actors Neil Pearson and Michelle Collins together with members of the public, widows and single parents saying ‘Don’t Judge My Family’.
This campaign looks excellent. There are are whole series of small campaigns to save things like Sure Start and EMA which are good.
Let’ make sure the Nasty Part don’t get back in! They’ve not changed!