Mum, dad and the kids hit hardest by the recession

New figures
from the CSO show that one household type, and one only, has suffered an
overall loss in gross income in the years between 2005 and 2010, and that was households
consisting of mothers and fathers with one to three children. 

Every other
household type saw a rise in gross income, despite the recession. Single people
saw their incomes rise by 15.7 percent. Single parent families saw their
incomes go up 6.6 percent, while two adult households without children saw
their incomes rise by 11 percent.

However,
couple-headed households with children saw their incomes fall by over 5
percent.

Now, it’s
obviously the case that all household types will have seen their net income
fall thanks to higher taxes , income levies and so on, but not their gross
incomes.

Apparently
the main reason for the fall in the gross income of two-parent families is that
they have been hardest hit by unemployment.

And now the
Government intends hitting them again (and all other families with children of
course) by further cuts to Child Benefit.

Admittedly
two-parent families earn more money than other households. On average, even
after the 5 percent drop, they earn €1,247.30 per week.

Single adults earn just under €500 per week and single
parent families take in just over €500 per week.

Two adult households earn on average just over €1,000 per week.

However, as
a rule single adults have only themselves to look after. Likewise couples
without children.

But parents
also have children to look after. So a household comprising two adults and two
children has to divide its weekly income of €1,247 between four people meaning
the income per head in these households is €318 per week, although economies of
scale have to be taken into account.

Some will
argue that it was their choice to have children and therefore it is their own
outlook if they struggle financially.  And
of course they should have to carry most of the weight of having children
themselves.

On the
other hand, if the financial burden of having children becomes too great, then
couples will have fewer children until at a certain point society itself begins
to suffer.

In
addition, those who don’t have children are inevitably served by other people’s
children, and unless they can fund their own health-care and their own
retirement, will rely on tax revenue generated by other people’s children.

So the
Government needs to take a long, hard look at what is happening to couples with
children and try to ensure they are not disproportionately hit by this
recession.