Adam Smith Institute

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It's what people don't say that fascinates

The Guardian tells us that many children in single parent families are in relative poverty. Well, yes, we think that’s probably likely to be true. The mean, median and modal family in the UK will be two earner - we’d rather expect families with only one even potential earner to have lower incomes.

Yes, we know, relative poverty is adjusted to household size but even so, the above effect will be there.

We do think it interesting what isn’t said, or attention drawn to. For example, current single parent child poverty, by this relative measure, is lower than it was at any time during the Blair years. That’s not an obvious sign that things have been getting worse this past two decades.

We also think this is interesting:

Launched by former chancellor George Osborne as a crackdown on those he claimed were “living a life” on public assistance, the benefits cap restricts total benefits, including for housing costs, to £20,000 a year for families outside London and £23,000 in the capital, regardless of the family’s needs.

Relative poverty is living on less than 60% of median household income. Median household income is £31,400. 60% of that is £18,840. The benefits cap is higher than 60% of median household income - before any contribution from work, absent parents or anything else.

We most certainly don’t think it desirable that people live on little income - we’re all for the economic growth that raises the living standards of all. We’re absolutely certain that the system can be improved too. And yet we just cannot bring ourselves to think that this is all some terror calling out to the very heavens for vengeance.