Family tax reform can bolster birth rate

Campaigners have urged the UK Government to reform tax rules for married couples to make it easier for them to have children.

The Marriage Foundation, a pro-family think tank, says making the tax system more family friendly could help Britain's plummeting birth rate.

It points to Hungary, where couples with two or three children face a lower income tax burden, and couples with four children are exempted.

Married couples in Hungary who pledge to have children in future can also avail of generous loans from the state to help them buy a house.

According to the Marriage Foundation, the consequences of Hungary's ten-year-long family policy are "striking".

Fertility rates in the country have risen from 1.25 to 1.59 births per woman, just above the EU average.

CARE has campaigned for a family tax reform for many years, including a radical overhaul of the UK's 'individualised' income tax system.

Last month, Tim Cairns, CARE's Senior Policy Officer, commented:

"In the cost-of-living crisis, it is households with children or other caring responsibilities who will be hit hardest. A reformed tax system can help the most vulnerable weather the storm.

"The current approach to taxation, which focuses on the individual, means that families are paying more in tax than households with no dependents. This is simply unjust.

"The next Prime Minister needs to consider a suite of measures to help Brits in today's challenging fiscal environment. A fairer deal for families must be part of their plan."