The Department for Work and Pensions (DWP) has come under fire as a rule known as the "couple penalty" could leave single mothers up to £9,600 a year worse off if they marry or move in with a partner, according to a report by the Centre for Social Justice (CSJ).
How the Couple Penalty Works
The penalty applies when a single parent marries or begins cohabiting with a partner. The DWP treats couples as a single financial unit, meaning that for every £1 the partner earns above a specific work allowance, Universal Credit entitlement is reduced by 55p. This reduction is not triggered by marital status alone but by living together in the same household.
The CSJ report outlines how the penalty scales with the partner's income. For example, a 30-year-old mother who is out of work with a one-year-old child would be £5,700 per year worse off if she marries or moves in with the child's father who earns £20,000 gross per year. If the father earns £30,000 a year, the mother would lose £9,600 in benefits annually.
Impact on Family Stability
Sophia Worringer, deputy research director of the Centre for Social Justice, said: "Families should not be made poorer for making a lasting commitment to one another. Marriage is one of the clearest indicators that parents will stay together, and children benefit when they grow up in stable households. Our welfare and tax system should reward commitment, not penalise it. If ministers are serious about reducing child poverty, supporting family stability – including marriage – must be at the heart of their strategy."
CSJ Recommendations
The CSJ recommends redesigning financial support in the early years of parenthood, using financial incentives that shift the timing of marriage forward. The report suggests that the current system discourages commitment and penalises families who choose to formalise their relationships.
Government Response
A Department for Work and Pensions spokesman defended the policy, stating: "We’re committed to moving from a welfare state to a working state, so that work always pays and people can move into good, secure jobs, and out of poverty. That’s why we’ve deployed 1,000 Pathways to Work advisers who are supporting people left behind by the previous government, are helping sick or disabled people into jobs backed by £3.5bn by the end of the parliament and removing the sickness incentive in Universal Credit."
The spokesman added: "We’ll always ensure there is a safety net for those who need it and our landmark Child Poverty Strategy will lift 550,000 children out of poverty in 2030 through schemes such as Free School Meals, expanding childcare and a £1bn Crisis and Resilience Fund to prevent families from falling into poverty."
