The UK's Labour Government has expanded means-testing of social security but attempted to do so while minimising the disincentive effects typically associated with such an approach. We test whether it has succeeded by reviewing the effect of 5 years of reforms on a range of incentives across the...

The current Labour Government was elected in 1997 with few specific social security proposals. This paper argues that after five years, consistent trends in social security policy have emerged: there is a willingness to increase benefits; a “work-first” focus; increasing centrality for...

Family Credit and ist successor the WFTC, have been central to the British welfare reform debate in reacent years. This debate in informed by tax benefit modelling, yet accurate modelling of Family Credit is fraught with potential problems. The main model input data are found to under-sample...

In 1974 Britain elected a Labour government pledged to expand public spending significantly. Labour followed its programme for two years, but after that began to cut both government spending and taxation, anticipating the post-1979 Conservative agenda. This paper examines the history of this...

The UK Universal Credit (UC) welfare reform simplified the benefits system whilst strongly incentivising a return to sustainable employment. Exploiting a staggered roll-out, we estimate the differential effect of entering unemployment under UC versus the former system on mental health. Groups...

This chapter brings together trends in inequalities in income, wealth and, to a limited extent, consumption in the United Kingdom, with a focus on trends until the onset of the COVID-19 pandemic.

This paper uses British panel data to investigate single women’s labour supply changes in response to three tax and benefit policy reforms that occurred in the 1990s. These reforms changed individuals' work incentives and we use them to identify changes in labour supply. We find evidence of...

This paper reviews how income-support systems affect labour force participation in the UK. The UK's approach to social insurance is basic security, with modest, typically flat-rate, benefits; insurance-based benefits are relatively unimportant. Compared with the EU, the UK has high employment...

This paper presents a tour of welfare reforms in the UK since the last change of government, summarising the most important changes in active labour market policies (ALMPS), and in measures intended to strengthen financial incentives to work. It argues that developments in the UK's active labour...

As a result of the Child Poverty Act (2010), current and future governments are committed to reducing the rate of relative income child poverty in the UK to 10% by 2020-21. This paper looks in detail at the progress made towards this goal under the previous Labour administrations. Direct tax and...