Coalition welfare reform will make work pay ? but still not by enough

Universal credit will help those who are able and willing to work, but who are currently trapped in the net of the welfare bureaucracy. Yet other flaws remain unresolved, or are even worsened. Work incentives at the margin will remain feeble, for instance. The combination of income tax, national insurance and the withdrawal of universal credit will create an implicit marginal tax rate of 76 per cent – well above the top marginal income tax rate. The groups with the weakest attachment to the labour market will continue to face the weakest work incentives.

Visibility: 

Main blog

Read the full blog post here

Source: http://www.iea.org.uk/blog/coalition-welfare-reform-will-make-work-pay-%E2%80%93-still-not-by-enough

pension calculator nhs pension pension forecast pensions uk iht