Welfare Reform on the Web (December 2006): Social security - UK

Did working families’ tax credit work? The impact of in-work support on labour supply in Great Britain

M. Brewer and others

Labour Economics, vol.13, 2006, p.699-720

This paper provides an evaluation of the impact of the Working Families’ Tax Credit (WFTC) on the labour market behaviour of families with children in Great Britain. The research shows the success of the WFTC in encouraging labour supply, particularly of lone parents. The WFTC increased the employment rate of lone mothers by 5.11% compared with the programme it replaced, Family Credit. With no form of in-work benefit at all, the authors estimate that labour market participation by this group would fall considerably, from around 55% to 45%.

Lone parents and informal childcare: a tax credit childcare subsidy

C. Skinner and N. Finch

Social Policy and Administration, vol.40, 2006, p.807-823

The Labour government aims to increase the lone parent employment rate to 70% by 2010. To achieve this aim, it has introduced a state subsidy for childcare in the form of the childcare element of the Working Tax Credit. So far this has been limited to formal childcare despite evidence that lone parents are more likely to use informal care by grandparents, other family or friends. This article investigates the feasibility of introducing a state subsidy to support informal childcare. The research suggests that being able to offer payment to friends, neighbours and extended family other than grandparents for childcare might stop lone parents from feeling that they are a burden and encourage them to take up work.

Progress in tackling pensioner poverty: encouraging take-up of entitlements

National Audit Office

London: TSO, 2006 (House of Commons papers, session 2005/06; HC 1178)

This report covers progress made by the Department for Work and Pensions and the Pension Service in tackling pensioner poverty since 2002. It assesses the Department’s progress against earlier recommendations, outlines the current situation, and considers the Department’s plans for the future. The report covers efforts to encourage the take-up of benefits by those eligible in Great Britain. It focuses on the take-up of Pension Credit, but also examines work being done to encourage the take-up of other key entitlements which may not be claimed, including: Housing Benefit; Council Tax Benefit, Attendance Allowance: and Carer’s Allowance.