Thirteen years of Labour government have improved the incomes of the poorest households while the richest have suffered large cuts, according to a study by a leading thinktank.
An increase in taxes on the wealthiest households has been matched by an increase in benefits for the poorest, the Institute for Fiscal Studies said today following a long-term study of Labour's impact on incomes since 1997.
Top stuff, don't hear that every day. Good news
"An overhaul of tax credits in 2003 created a £13bn system of benefits that rewarded families for taking a job and remaining in work."
Goes against the usual line from the Express and Mail. So let me think about this. On the one hand you have a statistical analysis body, on the other you have two cynical, morally outraged papers who have a line to tow. I think I'm going with the IFS on this
"In the recession it has provided a safety net for many families and allowed them to accept part-time work when in a previous era it would have paid them to leave work and claim benefits. Families where the main wage earner is forced to take a large cut in hours will see their incomes largely maintained by tax credits."
Looks like Gordy worked the system out well. Well done lad, nice one.
"Since 2003 the cost of the tax credit system, which includes child tax credits and the working tax credit, has soared. Figures from the budget showed the combined bill had reached £20bn by 2008-09 and this year is expected to reach £23bn."
Sadly, worth-while things like this cost money. But a worthy investment.