241 Pizza

Grab an Italian masterpiece for less

Navigation - link to other main sections from here

Skip Navigation

From The Times
October 5, 2006

Tax credits 'hit poor families'

By Rosemary Bennett
Gordon Brown’s tax credit system has created a “poverty trap” for low-paid families who no longer have any incentive to find better jobs, according to research.

More than 400,000 households earning about £15,000 a year face losing 80p or more of every extra pound they earn if they move to better-paid work — thanks to the tax credits programme. A report by the Institute for Fiscal Studies questioned Mr Brown’s claim that his policies “make work pay” and says that the effect of the expansion of means-tested benefits has been felt across the economy.

The Tories said that the report provided the strongest evidence yet that tax credits “entrenched poverty” and discouraged workers from increasing their hours or finding better-paid jobs. One group that has benefited from tax credits, however, is lone parents whose income has soared as a result of getting back to work.

Bookmark and Share

Also in UK News

Also in News

Floods aftermath

View of warning sign at a bridge following floodings in Dumfries, south-west Scotland

Scenes of chaos in Cumbria as homes flooded out and bridges collapse

Slide Show

Comment     

Rachel Sylvester
 

The truth is that there are significant differences between the two men at the top of the Conservative Party  

More...
Rachel Sylvester

Parent Power

Parent Power

Britain's best schools

The Sunday Times Parent Power: the definitive guide to the UK's best schools

Comment Central

Something for the lady: The 10 most sexist adverts ever

Pictures of the Day

Greenpeace activists display a banner as they demonstrate in Berlin ahead of the climate summit in Copenhagen

A selection of the best pictures from around the world

Slide Show

School Gate

The report found that physical violence and aggression by pupils towards teachers is very rare

What should education be for?

Functional skills or a love of learning?

Most Read

Skip Most Read

Today

MOST COMMENTED

Skip Editor's Pick

Today

MOST CURIOUS

Skip Most Curious

Today

Focus Zone

accenture

Need to Know:

Industry sectors news at a glance. Interactive heatmap, video and podcast

ba business travel clouds

Business Travel:

Everything the Business Traveller needs to know to make a better trip

Winter Sports

Winter Sports:

Get ready for the winter sports season, with our resort guides and snow reports

lloyds

Mapping Business:

We are backing British business, what is the confidence of the nation and what businesses are succeeding?

Shell

The Future of Energy:

Growing demand for energy, oil that is harder to reach and the rise of carbon dioxide emissions. We examine the energy challenge

high-speed trains

Europe by Train:

With rail travel in Europe on the rise, we review the benefits of travelling by train

More Reports

More reports:

Enjoy further reading from Travel to Fashion, Business to Sport, discover more

previous next
The Singapore skyline pictured at night

Business city guides

Overseas contacts and local business information

Business Directory

Business Directory

Search for local businesses & services

Generic photo of a job interview.

Free CV Review

Sell yourself! Have your CV reviewed by experts

Money symbol on computer key

Find an IFA

Find a local independent financial advisor

crossword with Cross fountain pen.

Crossword Club

Sign up today or try one of our free demo crosswords

A lawyer with gown and wig

Find a Lawyer

Cut your legal costs

Sudoku

Online Sudoku with daily prizes

Popular Searches on Times Online

2010 movies | books | chess | crosswords | fantasy football | fashion | formula 1 | horoscopes | Michael Jackson | need to know | obituaries | recipes | redundancy calculator | science | sudoku | swine flu | twitter | university guide | wine | wintersun

Shortcuts to help you find sections and articles

Classifieds 

Cars

Skip Cars of the Week

Ferrari F355 F1

1998
£47,955

Virgin Car Insurance

12 months for the price of 11 and a 5% discount.
Offer ends 31/11/09

Apply for car finance?

Check your free Experian credit report before applying


Jobs

Skip Jobs of the Week
Business Development Executives

to £60K + bonus (OTE £90k)
Lord Search & Selection
Location Flexible

Consulting Roles All Levels

PwC’s Consulting practice helps businesses of all shapes
and sizes work smarter and grow faster.

Commmercial Project Manager

Highly Competitve
Specsavers
Whiteley, near Southampton

Properties

Eager to get on the property ladder?

Find out about shared ownership.

Looking for a Mortgage?

See your free Experian credit report beforehand

Holidays

Skip Travel of the Week

Amazing Canada Ski deals fr £479pp

Book now & save over £100pp.
11 cool resorts, lowest prices... Early Booking offers 15 Nov.

Sunvil

20% off selected Azores holidays taken in October with Sunvil Discovery


Great Travel Insurance

Get covered on your travels with a superb range of policies at great prices. Visit InsureandGo.com


Fabulous Villas in Barbados

World Class Golf, Spa and preferential Beach Club.  Private estate overlooking West Coast
Villas from £275 per night inclusive of Golf

Place your advert now