A Christian charity is calling on the government to reform income tax rules as families face the cost of the living crisis.
A new report by Christian Charity CARE argues that existing rules on income tax and national insurance, can be reformed to bring relief to the most vulnerable families in years to come.
UK households are now witnessing the biggest increase in energy costs in living memory.
Bills for a typical house are rising by nearly £700 a year, or 54 percent.
The study, by social policy charity CARE and tax policy experts Tax & the Family, argues that the current approach to taxation is inherently unfair.
It states: "The UK tax system does not treat families fairly.
“The amount of tax that they pay bears little relationship to how well off they are.
“Many families in poverty pay income tax.
“Some in the bottom half of the income distribution even pay higher rate tax and are liable for the HICBC.
“This problem, which has been ignored by successive Chancellors, is a serious one, and needs to be tackled.
"Latest data from the ONS indicates that there are 27.8 million households in the UK.16
“Nearly 8 million of these households are families with dependent children: 5.26 million couples with one or two children, 0.94 million couples with three or more, and 1.67 million single parent families.
"Families with a single income (one-earner couple families and single parent families) are the most disadvantaged by the income tax system.
“Our figures also suggest that families with two equal incomes may have higher tax liabilities than households without dependents.
“This unfairness is due to the fact that UK income tax is based on the individual and has little regard for family responsibilities."