Case Study 4
THE
SITUATION:
Both parents work for at least 30 hours for
£100 net income per week. The mother receives Child Benefit.
They shared care exactly equally, with their
daughter spending one week with one parent, one week with the
other. During weekdays, whoever has the daughter has to spend
£10 per day on childcare.
THE
RESULT:
The parent who claims Child Benefit ends up
with much more money than she earns, because of all the money
that the government supports her withChild Benefit, Working
Families Tax Credit, and childcare tax credit.
The parent who doesn't claim Child Benefit,
in spite of earning exactly the same, and caring for their daughter
exactly the same, ends up with about half the money he earns.
ALTERNATIVE SITUATION:
Suppose they decide that they need more money
to be provided by the government. So they decide that the mother
should look after the child full time.
THE
RESULT:
The mother retains just a little bit (£6.05)
less per week as a result of caring for the children full time
(while still working and using childcare each working day).
The father now retains £95 per week. So
by giving up care of the children, he has become £43 better
off. (He may privately subsidise the mother).
Taxpayers pay £36.95 per week to enable
the father to be £43 better off by never seeing his child.
Taxpayers are subsidising him by a large amount to abandon his
children, at the expense of the mother.
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