IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

The impact on incentives of five years of social security reform in the UK

  • Mike Brewer

    ()

    (Institute for Fiscal Studies and ISER, Essex University)

  • Tom Clark

    (Institute for Fiscal Studies)

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 British population, undertaking micro-simulations on survey data. The incentive to enter work increases for the first earner in families, but for second- earners in couples the incentive to work has generally been dulled. Effective marginal tax rates have generally increased for workers, in spite of reductions in benefit withdrawal rates, owing to the increasing numbers facing means-tested benefit withdrawal. Reforms have reduced the number of pensioners facing very high effective marginal rates, but increased the number on moderately high rates. Incentives regarding family life have been affected: partnering has become less financially attractive for low-income individuals; having children has become more financially attractive.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.ifs.org.uk/wps/wp0214.pdf
Download Restriction: no

Paper provided by Institute for Fiscal Studies in its series IFS Working Papers with number W02/14.

as
in new window

Length: 52 pp
Date of creation: Jul 2002
Date of revision:
Handle: RePEc:ifs:ifsewp:02/14
Contact details of provider: Postal: The Institute for Fiscal Studies 7 Ridgmount Street LONDON WC1E 7AE
Phone: (+44) 020 7291 4800
Fax: (+44) 020 7323 4780
Web page: http://www.ifs.org.ukEmail:


More information through EDIRC

Order Information: Postal: The Institute for Fiscal Studies 7 Ridgmount Street LONDON WC1E 7AE
Email:


References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. N. Eissa & H. W. Hoynes, . "The Earned Income Tax Credit and the Labor Supply of Married Couples," Institute for Research on Poverty Discussion Papers 1194-99, University of Wisconsin Institute for Research on Poverty.
  2. Peter Diamond, 2000. "Social Security Reform," 'Angelo Costa' Lectures Serie, SIPI Spa, issue Lect. I.
  3. Massimo Baldini & Stefano Toso & Paolo Bosi, 2002. "Targeting welfare in Italy: old problems and perspectives on reform," Fiscal Studies, Institute for Fiscal Studies, vol. 23(1), pages 51-75, March.
  4. Fran Bennett, 2002. "Gender implications of current social security reforms," Fiscal Studies, Institute for Fiscal Studies, vol. 23(4), pages 559-584, December.
  5. Mike Brewer & Tom Clark & Matthew Wakefield, 2002. "Social security in the UK under New Labour: what did the Third Way mean for welfare reform?," Fiscal Studies, Institute for Fiscal Studies, vol. 23(4), pages 505-537, December.
  6. Mike Brewer, 2001. "Comparing in-work benefits and the reward to work for families with children in the US and the UK," Fiscal Studies, Institute for Fiscal Studies, vol. 22(1), pages 41-77, January.
  7. Richard Blundell & Alan Duncan & Julian McCrae & Costas Meghir, 2000. "The labour market impact of the working families’ tax credit," Fiscal Studies, Institute for Fiscal Studies, vol. 21(1), pages 75-103, March.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:ifs:ifsewp:02/14. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Stephanie Seavers)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.