Single Mum Faces Hidden Tax Trap, Deterred from Returning to Work

Plight of Single Mum Phoebe Evans

Phoebe Evans, a single mother of two, is struggling with the idea of returning to work due to a significant loss in earnings after the recent Budget announcement. She describes the situation as a "hidden tax trap" that many single parents face, making it financially impractical for her to go back to work.

The Taxing Reality for Single Parents

Despite the National Insurance cut announced by Chancellor Jeremy Hunt, single parents like Phoebe may end up losing more than they earn due to benefit cuts and high tax rates. The current benefits system poses a challenge for single parents who want to restart their careers but find themselves in a financial dilemma.

Balancing Work and Welfare

Phoebe faces a marginal tax rate of 74.1% for every pound earned, which makes it unfeasible for her to return to work. While tools like the Better Off Calculator suggest she might still take home more money with full-time employment, the added costs of commuting and loss of benefits make it a tough decision for many single parents in similar situations.

A Call for Support and Solutions

Phoebe's story sheds light on the challenges faced by single parents navigating the benefits system while trying to provide for their families. More support, affordable childcare, and practical solutions are needed to help single parents like Phoebe overcome the financial hurdles that prevent them from returning to work.