Government cuts treat single mothers as “shock absorbers”
A new report, demonstrating how single mothers will be hit hardest as a result of benefits cuts, tax increases and weakened public services, has been published by the Institute for Fiscal Studies and the Fawcett Society (the leading group in the UK campaigning for gender equality). The report is titled ‘Single Mothers: Singled Out – the impact of 2010-15 tax and benefit changes on women and men’.
The report, entitled ‘Single Mothers: Singled Out – the impact of 2010-15 tax and benefit changes on women and men’, estimates that single mothers will have 8.5% less net income by 2015. That’s equal to losing a month’s income each year. Single fathers are projected to see their incomes drop by 7.5%, whilst couples with children will have to deal with a 6.5% drop. For couples without children, the figure is 2.5%. Cuts to public services will also impact single mothers the most severely – the report estimates that these cuts will be equivalent to an 18.5% drop in their net income.
The report bases its analysis on the details of the June 2010 emergency Budget, the March 2011 Budget, and the Comprehensive Spending Review. In particular, it draws attention to the housing benefit cuts, the 3-year freeze on child benefit, reduced childcare provisions in the working tax credit, and maternity grant restrictions for a mother’s first child.
The reforms are bad news for lone parents generally, and women account for the “vast majority” of this group, according to Anna Bird, acting Chief Executive of the Fawcett Society. “Some of the least well-off in our society are being forced to act as shock absorbers for the cuts,” she added.
In 2010, the Fawcett Society attempted to bring about a judicial review of the Government’s programme of cuts, but did not succeed. They had argued that the plans were at odds with the Government’s duty to consider the impact of policies on social equality, but the Treasury countered that it wasn’t possible to make a reliable assessment of differences in the way the cuts would affect men and women. This latest report highlights the absurdity of such a claim.
If you’ve borrowed too much and you’re having difficulty making your repayments, you might be able to ease the pressure by setting up a debt management plan.