One Parent Families Budget Submission

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One Parent Families Budget Submission 2005

March 2005 Our Budget submission this year focuses on tackling poverty. We believe that while the framework for delivering an end to child poverty is in place, for the strategy to be effective, two things are needed. Firstly, benefit and Minimum Wage rates must be significantly up-rated. Secondly, the policies that have been put in place must not only be designed appropriately but also be delivered successfully. At present we fear that many of the positive initiatives that have been put in place are in danger of being undermined by problems with their delivery.

Our priorities for this budget therefore are:

An increase in the level of the Child Tax Credit to ensure that it has been increased by £10 by 2010.[1] An increase in the maximum amount of Child Tax Credit must also be accompanied by an uprating of the income thresholds at which tax credits are withdrawn by earnings.
An increase in the National Minimum Wage to at least £5.50 with the aim of setting a National Minimum Wage rate pegged to two thirds of male median earnings. This again must be accompanied by an increase in the earnings threshold for Working Tax Credit.
Limiting the recovery of tax credit overpayments to 10% of the maximum weekly entitlement for a family in their circumstances and to 15% for those on Working Tax Credit. Where there are compound overpayments these limits must still apply.

Lone parents have seen their situation substantially improve Government but there is still a long way to go. Well designed policies must also be well delivered if the Government’s ambitious targets are to be met. Our submission addresses changes that will directly impact upon poverty rates before concentrating on delivery in three areas which are critical to the success of the Government’s strategy, and about which we currently have concerns: employment policy, the new tax credits, and child maintenance.

Download the attached PDF of the complete budget submission or use the links below to read the budget submission section by section.

[1] This is in line with the recommendation of the Work and Pensions Select Committee, which stated in its recent report on child poverty that an additional £10 will need to be added to the Child Tax Credit in order for the 2010 poverty target to be met.

Budget submission 2005 (PDF, 39 KB)

Tackle lone parent Poverty in and out of work

Ensure that employment policy can deliver the 70% target

Improve the delivery of tax credits to fulfil their original aims

Deliver on Child Support

Budget submission 2005: Conclusion

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