TaxPersonal TaxTax credits push up divorce figures

Tax credits push up divorce figures

Tax credits increase divorce rate, claims professor

‘Tens of thousands’ of divorces have been attributed to the introduction of
the working families’ tax credit, according to a university study.

Since the credits were introduced in 1999, its benefits have led to thousands
of married mothers being able to divorce husbands on low earnings or bringing
home nothing, reported the
FT.

‘Where a mother is married to a low-income man, for example one who doesn’t
work or works for less than 16 hours a week, then if you divorce, you could end
up as a single mum and not do too badly,’ said Professor Marco Francesconi of
Essex University.

He said tax credits had been a success as they had encouraged lone parents
and married mothers back to work.

Further reading:

Read
the FT’s story

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