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The cost to Britain of social breakdown
is running at £102billion a year, according to the
Tories. The party's review group on social policy will
put a massive price on the effects crime, poor education
and family break-ups have on the economy. The long-awaited
findings of the taskforce led by former Tory leader Iain
Duncan Smith are tipped to inspire the first planks of
the party's next manifesto. Mr Duncan Smith's interim
report in December was widely hailed as a definitive piece
of work on a neglected area of policy. It prompted David
Cameron to confirm that tax cuts for couples are part
of the Tory agenda and will be used to shift the balance
of state support in favour of families.
It is understood that the social justice
policy commission used Government statistics to cost
the overall impact of social breakdown at £102billion
a year. The total is made up of £24billion for
family breakdown, £18billion for educational under-achievement
and £60billion for crime.
Six months ago Mr Duncan Smith and his
taskforce warned that family breakdown and debt are
out of control. Mr Cameron has already promised to overhaul
the tax and benefit system to recognise marriage and
reverse Labour policies which encourage couples to earn
more benefit by living apart. The Tory leader said he
would "set a simple test for each and every one
of our policies - does it help families?"
The interim report recorded clear evidence
that cohabiting couples were more than twice as likely
to break up as married couples. It found that three-quarters
of family breakdowns affecting young children involve
unmarried parents. It also warned that a national debt
crisis is causing misery for millions and fuelling family
disintegration. Personal borrowing has reached a total
of £1.25trillion - meaning each household owes
an average of £50,000. The study said family breakdown
is happening at a greater rate than ever before and
is costing the country more than £20billion a
year.
Mr Cameron has raised the possibility
of a transferable tax allowance which a parent who chooses
to stay at home could pass on to their working partner.
But he is also under pressure to tackle the bias in
the benefits system that effectively encourages families
to live apart in order to claim more from the state.
Mr Duncan Smith's report, which is expected out next
week, is likely to make substantial recommendations
in this area which could carry heavy cost implications
for the Conservatives. He has been pressing his party
to champion the family by giving it recognition in both
the tax and the benefit system. The issue is likely
to dominate the public policy debate in the run-up to
the next election.
Gordon Brown signalled his determination
to fight the Tories on family issues by appointing his
closest adviser Ed Balls to head the new Department
for Children, Schools and Families. Mr Cameron replied
by appointing rising star Michael Gove to shadow Mr
Balls.
Mr Duncan Smith's interim report - called
Breakdown Britain - also paved the way for a crackdown
on major lenders, which are accused of handing out loans
and credit cards like confetti to unsuitable customers.
It found that 12million Britons are suffering from serious
debt problems - twice the official estimate. His group
has consulted more than 800 experts and organisations
in preparing its final report.
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