Facts and figures about UK taxes, benefits and public spending.
Income distribution, poverty and inequality.
Analysing government fiscal forecasts and tax and spending.
Analysis of the fiscal choices an independent Scotland would face.
Case studies that give a flavour of the areas where IFS research has an impact on society.
Reforming the tax system for the 21st century.
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The goals of income transfer systems in the US and the UK for low-income families are to reduce poverty and welfare dependency and encourage work. Both the US and UK have made in-work benefits a key part of their strategy through the Earned Income Tax Credit (EITC) and Working Families' Tax Credit (WFTC) respectively. But although similar in aims, there are significant differences in how the WFTC and EITC are structured and how they work operationally. In both countries, the combination of in-work benefits and welfare benefits produces a theoretical budget constraint with good financial incentives for lone parents to take a minimum wage job, but poor incentives to increase earnings beyond that. Help with housing costs and childcare costs reduce financial work incentives in both countries. Two further factors make direct comparisons of financial work incentives difficult. First, little is known about take-up rates of in-work and other welfare benefit rates in the US and UK, but recent falls in the numbers of US welfare benefits suggest that take-up rates may vary considerably between and within countries. Second, the differences in assessment and payment mechanisms between the EITC and the WFTC mean that low-income families in the UK and US may respond very differently to apparently similar financial incentives.
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Recent IFS Working Papers
Female labour supply, human capital and welfare reform
We consider the impact of tax credits and income support programs on female education choice, employment, hours and human capital accumulation over the life-cycle.
The drivers of month of birth differences in children's cognitive and non-cognitive skills: a regression discontinuity analysis
This paper uses data from a rich UK birth cohort to estimate the differences in cognitive and non-cognitive skills between children born at the start and end of the academic year.
The impact of age within academic year on adult outcomes
We provide the first evidence on whether differences in childhood outcomes translate into differences in the probability of employment, occupation and earnings for adults in the UK.