2024-03-06 13:18:29
Whether it is accommodation or travel costs, single people regularly face higher costs than those in a relationship in Europe.
Europe’s current cost of living crisis is affecting most people in one way or another, but single people are potentially the most impacted. Being single can be an opportunity for you, but it can also come with a high price.
According to finance and insurance company, Ocean Finance, single UK people pay around €3,739.8 per year for expenses such as rent, mortgages, utilities and more.
In recent years, UK and European singles have been hit by a disproportionate increase in costs compared to couples or families. This situation has given rise to a coined term, the singles tax, also known as the singles penalty, which refers to all the additional costs faced by people who are not in a relationship with.
This extra cost is noticeable in almost everything, from mortgages and bills to travel and leisure activities, especially for single people without children.
According to Eurostat, single-person households without children increased by 30.7% between 2009 and 2022 in the EU. The smallest households are found in Lithuania, Estonia, Denmark and Finland, while the largest are found in Croatia, Slovakia and Greece.
Eurostat also highlighted that in 2022, the most common household type in the European Union was single-adult households, representing around 71.9 million people.
According to Sophie Cress, a licensed marriage and family therapist, the impact of the singles tax could go far beyond financial constraints.
“The singles tax can have consequences that go beyond money matters, affecting people’s relationships and decision-making. The fact that more and more people are staying in relationships for financial reasons is a testament to societal and economic pressures faced by single people”specifies Sophie Cress.
“Many wonder if they can afford to be single, both financially and emotionally, in a world where the cost of living solo seems exorbitant.”
“The singles tax can make them feel socially isolated and stigmatized. This is because society tends to place more importance on romantic partnerships and family units, making singles feel marginalized.”adds the therapist.
“As a result, these people may experience feelings of inadequacy or unworthiness, because the norm is that happiness and fulfillment come primarily from romantic relationships.”concludes Sophie Cress.
What expenses are most affected by the singles tax?
Amid a cost of living crisis, single people may struggle to pay their rent and mortgage on their own, particularly in cities with high costs of living, such as London. People who are in an unhappy or unhealthy relationship think twice before breaking up because they are not always sure that they can meet their needs alone.
In many cases, banks and other financial institutions are also less willing to provide loans and mortgages to single people, even if they have a stable, well-paying job and a decent down payment for the mortgage. This can make it difficult for a single person to purchase a home.
Grocery store receipts can also be much higher because products are packaged in two or four servings, and family packs of foods, such as chips or chocolate, are also aimed at singles.
When eating out, singles are also less likely to take advantage of deals aimed at couples or families
Likewise, travel costs can add up quickly, with single people not always having access to discounts such as ‘Two Together’ train cards in the UK. The same goes for hotels and other vacation activities, with someone going alone not being able to benefit from significant group discounts.
The same goes for utilities, such as water and energy bills, which can operate on a fixed rate basis and mainly take into account two-person households. Other leisure costs, such as the TV license and streaming services, such as Netflix and Amazon Prime, will also be higher.
Ocean Finance estimates that single people pay around 230 euros more per month on their bills – including housing – than if they had another adult with whom they could share the costs. Likewise, they spend around 17 euros more on food and alcohol, 46 euros more on vacations and 30 euros more on subscriptions.
ADVERTISEMENTSingles often pay more taxes than couples or families
Finn Wheatley, risk analyst at Small Business Blog, told the Big Issue: “The cost of living alone adds up. First of all, taxes hit singles harder than couples or families. When I lived alone, everything from rent to groceries to health care, was my sole responsibility, with no one to share the costs with.
While one can find ways to pay less rent and reduce grocery bills, higher taxes on singles could potentially be more painful. In the UK, for example, the marriage allowance could reduce a couple’s tax bill by around 1170 euros.
According to the OECD, in 2022, in Belgiumthe tax wedge for single workers without children was around 53%,Germany standing at 47.8% and theAustria at 46.8%. There France taxed single workers without children at 47.0% andItaly at 45.9%.
In contrast, the Belgian tax wedge for an average married worker with two children was 37.8% in 2022, with Germany taxing them at 32.9% and Austria at 30.2%. France taxes them at 39.2% and Italy at 34.9%.
Belgian municipality introduces lifestyle-neutral reforms
As of January 1, 2023, Belgium had 1.8 million one-person households, according to Stratbel, or more than 36% of private households. During the Covid-19 pandemic, these households increased by approximately 22%.
ADVERTISEMENTHowever, Belgium continues to have one of the highest tax policies for single people. This situation led Carla Dehonghe, a member of the Brussels Parliament and member of the Flemish liberal party, Open VLD, to condemn social discrimination against single people without children, particularly in matters of taxes.
Calling for more lifestyle-neutral tax policies, as reported by the Brussels Times, Carla Dehonghe said that “many people find themselves alone following a change in circumstances. There is no age limit for living alone. The group of single people is very diverse: singles, divorced people, widowers, single-parent families , etc.
“The classic family of two parents and two children remains the norm in the eyes of political decision-makers. This leads, among other things, to disadvantageous measures for single people, in terms of taxes, housing, etc.,” she emphasizes.
“Bequeathing your inheritance to your children or your partner allows you to benefit from the most advantageous inheritance rights, but single people without children simply do not have this possibility. Giving your inheritance to a person outside the family circle, even to a brother or a sister, is rather good news for the State”, adds Carla Dehonghe.
Carla Dehonghe has made some changes in this direction in her own municipality, Woluwe-Saint-Pierre, whose council recently unanimously voted for a charter aimed at making more inclusive changes in terms of society, housing and community.
ADVERTISEMENTThese include, for example, new housing offering more common spaces for singles, restaurants offering communal tables, municipal invitations allowing an additional person to be invited, instead of just one partner, etc.
“Everyone can contribute, not just politicians. Local restaurants can develop singles-friendly policies. In the workplace, everyone’s wishes can be respected.”says Clara Dehonghe.
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