RELATIONSHIP FOUNDATION SAYS GROWTH KEY BUT FAMILY FRIENDLINESS NEEDS MORE

Tax breaks, first time buyer and mortgage interest support and fuel duty changes may benefit families in the short term: but it won’t relieve the long term pressure on families, or stem the tide of family breakdown.

Using purchasing power parity, on Eurostat data, UK energy costs have been among the lowest in Europe, and UK food costs around the average, although fuel costs are no doubt rising from their 2009 level of 5% of household budgets, and food inflation is rising at 6.3% compared with a Eurozone average of 1.5%. But, though inflation and world events are adding to immediate pressures, there are longer-term, structural pressures on UK families:

· 13.9% of UK households with dependent children have household debt more than 100% of their monthly disposable income. This is the highest in Europe, equal with Germany (Eurostat, latest data 2008).

· 15.4% of UK households with dependent children experience housing cost overburden, the fourth highest in Europe (Eurostat, latest data 2009).

Britain languishes at the bottom of almost every European league table relating to family pressure. The Prime Minister has repeatedly committed to make Britain Family Friendly, the Deputy Prime Minister has claimed not to be ‘casual’ about the pressure on parents.

The annual £42 billion cost of family breakdown due to its impact on benefits, crime, health and education, operates like an additional interest payment on the legacy of the past. But we continue to run a families deficit because family breakdown is increasing. Over the last ten years, there has been a 20% increase in the likelihood that a newborn’s parents will split by her 16th birthday.

One in twelve households has experienced relationship problems as a result of financial difficulties.

The Government has failed to set out a strategic plan for reversing this trend. The Childhood and Families taskforce, which Nick Clegg claimed would influence this budget, has been completely silent.

Commenting, Michael Trend, Executive Director of the Relationships Foundation, said:

“It is hugely disappointing that the Childhood and Families taskforce has had no impact on this budget, and that the question of how to make Britain family friendly was neglected.”

“Employment is the crucial route out of our social and economic problems, but David Cameron will repeat the mistakes of the past if he drives the economy at the expense of family and community.”

“Even as George Osborne tries to save money, family breakdown is costing taxpayers £42 billion and rising: the Government has a strategy for growth which supports families – now it needs a strategy for families to support growth.”

Relationships Foundation, 31/03/2011