Fix child poverty – it’s easy.

No Right Turn has a go at Labour, but I’m more interested in this statement.

Last election, the Labour party did a good thing. After years of denying that its discriminatory Working For Families “in-work” payment denied assistance to those who needed it most, they listened to the evidence, and agreed to (slowly) universalise it in order to eliminate child poverty.

Got that? The in-work payment will eliminate child poverty.

Now, if you’ve got a family income of less than $36,350 a year (pretty sure the dole is more than that) and 4 kids you get $286/wk from Working for Families. (data here)

That means your income has gone by $14,872 a year to $51,222. About 30% of your income is now from Working for Families.

The IWTC brings you up to $55,122 – $3,900 more.

Which means that your income is now:

  • 66% your original income
  • 27% WFF Tax Credit
  • 7% IWTC

Now, I grant you that that $75 a week is something. It’ll certainly help people.

But will a payment of $75 really eliminate child poverty, when a payment of $286 didn’t?

What makes $75 the magic figure I wonder? What is it about that last $75 that is so important that without it, we have children dying in the streets, while with it we have eternal bliss?

Who knew it was so hard?

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