Tuesday, April 03, 2007

Policies make life hard for families

Zenit, the news service from Rome, carries an article on how families can be put at a financial disadvantage by Government policies. It will be interesting to see whether any political party comes up with concrete proposals to alleviate the discrimination against families. This is the first part of the article:

Marriage and family life in Britain have declined dramatically in recent years and one of the causes is government policy. This is the thesis of Patricia Morgan, in a policy brief entitled: "The War between the State and the Family: How Government Divides and Impoverishes." The study is published by the London-based Institute of Economic Affairs. The number of marriages has fallen notably, while the age at which couples marry has risen and the proportion of births out of wedlock has rocketed from 8% in 1970 to 42%. It is true, Morgan admits, that around one in four women with a child born out of wedlock goes on to marry in the subsequent eight years. But a quarter or more of children now have lone parents, who bear and raise their offspring in one or a series of cohabitations. In addition, cohabitations in which children are born are much less likely to be converted into marriage, and more likely to dissolve than either marriages or childless cohabitations. Moreover, Morgan argues that there is a generally upward trend in the proportion of cohabiting relationships that dissolve rather than turn into marriage. And, after they break up, it takes about two years to form another relationship, often another cohabitation. This decline in marriage is a worrying trend, the study explains, given the important social role of family life. Not only does marriage perform social tasks that are not easily replaced by other institutions, but it is also an important means of bonding fathers with their children. Morgan points out the importance of marriage for men, in terms of connecting them with the community and encouraging personal responsibility. Single-parent families and divorce also have severe negative effects on children that have been substantiated by numerous studies, Morgan points out. Problems include lower educational results, poorer work prospects and inferior health. Adults are also better off being married. "Married people are consistently better off in terms of longevity, mental and physical health, and suffer lower levels of violence and addiction," the study argues. Welfare payments The breakdown in family life has led to a big rise in government welfare spending. Payments related to child support rose from 10 billion pounds ($19.6 billion) per year in 1975 to 22 billion ($43.2 billion) in 2003 (in 2003 prices). No less than two-thirds of this increase was due to the big increase in one-parent families, according to Morgan. The problem with this is that a disproportionate amount has gone to single-parent households. Two-parent families are, in effect, being economically discouraged through the combination of welfare payments and the tax system. Thus, the government promotes a situation that favors the increase in single-parent families, with the consequent social ill-effects. "Anti-family activists have expressly sought to undermine any economic, social and legal need and support for marriage by getting any privileges granted to married couples, including tax allowances, withdrawn, and recognition extended to different types of households and relationships," Morgan explains. In many cases couples with two children would be financially better off if they split up and the mother claimed welfare benefits. For example, if one parent is working full time at the minimum wage, or at average income, the couple is worse off living together than if they were to split up -- to the tune of 260 pounds ($510) per week. Only when joint incomes reach 50,000 pounds ($98,125) a year is there no loss from being a couple. Thus, a combination of payments in cash and in kind raise the welfare available outside the married state by enough to take away economic reasons for forming a conjugal household. While the rise of illegitimacy and the retreat from marriage might not simply be due to economics, it would be unwise to ignore the financial factor that forms part of the environment in which people make decisions about relationships and children. In fact, many people, Morgan admits, will have other reasons that could override economic factors in deciding whether to marry. "But it would be foolish to simply assume that people do not change their behavior in response to the costs and benefits of different directions," she observes. The welfare system encourages lone parenting especially when the earning potential of the father is relatively weak. It does this in three ways, Morgan explains. First, the bias in tax and benefits systems discriminates against couples, particularly single-earner couples. Second, it can encourage single mothers to have children in order to obtain welfare benefits and thus improve their economic situation. Third, the benefits system can bring about labor market conditions that are less conducive to couples making a decision to marry.

Monday, April 02, 2007


The article in this week's newsletters about Asbos for toddlers who damage Church property and fines for parents certainly generated a lot of interest. Some people were outraged. Others congratulated us and said it was about time too!

Most people, however, spotted that the date from which the new measures were to take effect was 1st April. So the time has come to own up. It was indeed an April Fool's Day spoof.

The accompanying photograph is, however, genuine and was taken by me in York earlier this year.