The effects of taxes and benefits on household income, 2007/08

This article looks at how taxes and benefits affect the income of households in the UK. It provides estimates of the average amount of taxes paid, and the value of benefits received, for households with different levels of income. It also shows how the estimates are different for various types of households, according to factors such as whether the household is retired, and the number of adults and children living in the household. The analysis also examines how income inequality has changed over time. The analysis is published annually and results are presented here for 2007/08. Appendix 1 (21 additional tables) and Appendix 2 (Methodology and Definitions) are available on the web version of this article at www.statistics.gov.uk/cci/article.asp?id=2257 Economic & Labour Market Review (2009) 3, 56–66; doi:10.1057/elmr.2009.144