Single income families pay '44% more' taxation

Date: 9th February 2009

Single income families pay as much as 44 per cent more in taxation than those in which both parents work, a report has shown.

An investigation by the Christian think tank CARE found that households with just one earner paid significantly more than most comparable countries.

The report concluded that married couples should be able to combine their taxation-free allowances, which could remove financial pressures from families.

Philip Hammond, shadow chief secretary to the Treasury, said: "This report highlights the continuing bias in the tax system against two-parent families where only one adult works.

"No other European country penalises families in this way."

He added that the Conservatives proposed increasing taxation credits for two-parent households to "level the playing field".

Last week, Chancellor Alistair Darling suggested to a House of Lords select committee that he was planning on implementing taxation breaks for pensioners at the upcoming budget statement.