Much guff has been talked about the effect of the loss of child benefit on the so called aspirant middle class. Yes, a family with one earner taxed at 40% and one at 0% will be hit. And, yes, it’s a grand less towards the school fees. But the tax system already looks after happy couples. (Two people, two tax allowances).  And Cameron and Osborne knew that there was little appetite to defend them.

So who does lose out? And does it matter? Well there’s not much sympathy for working single mums who’ve managed to go up the income scale.  Sure, they’re not the worst off. One blogger points out that the median income for working single parent families is £21,035 a year (compared with a median of £32,158 a year for a two parent family with one worker.) (I’m assuming this is gross.)

But single parents earning £45k aren’t an urban myth. And nor are they leading the life of Riley.

Unless she has stumbled on a lottery ticket, a single mum on £45k is out at work and shelling out on childcare, paid out of already (higher) taxed income. (Funny that an accountant is tax deductable but a nanny is not.) So her net income is far, far lower than that of the couple who generate the same income but only pay 20% of it to the tax man. (And she’s up half the night cooking and cleaning as she hasn’t time in the day or money to pay). (more…)