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Tax and benefit system
Since its foundation in the 1960s, the IFS has been studying developments in the UK's tax and social security system. This continues to be a core part of the Institute's work, making a particularly important contribution to public debate around the government's annual set pieces of the Budget and Pre-Budget Report, and the Institute's own Green Budget. Research at the IFS concentrates on describing and analysing changes and proposed changes to the tax and social security system, and in using large cross-sectional household datasets to model the impact of reforms on individuals' incomes and behaviour. Below, we present specific projects that researchers at the IFS have worked on in recent years, although the constant need to maintain the Institute's tax and benefit model means that IFS researchers are familiar with almost all areas of personal tax and social security in the UK.

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Year: 391 publications
01 December 2002
Editorial Note
This symposium arises from a one-day conference held at the Institute for Fiscal Studies on 22 May 2002.
01 December 2002
In 1997, the Labour Party was elected in the UK with few explicitly articulated ideas about social security reforms. This paper reviews the large number of subsequent reforms to social security, and argues that some consistent themes have emerged.
01 December 2002
John Hills
This paper examines New Labour's social security and related policies since 1997 in the light of evidence on public attitudes.
01 December 2002
Fran Bennett
This paper examines some current reforms to social security benefits / tax credits and changes to employment provisions from a gender perspective.
25 August 2002
Nick Bloom, Rachel Griffith and John Van Reenen
This paper examines the impact of fiscal incentives on the level of R&D investment.
01 August 2002
BN28
Tom Clark and Carl Emmerson
This briefing note looks at the interaction of the tax and benefit system with stakeholder pensions. In particular, it asks how, in the light of recent reforms to the system of state pension provision, the welfare system differentially affects the incentive to invest in a stakeholder scheme for various groups in the population.
03 July 2002
W02/15
In this paper we apply a grouping estimator to data from the UK Survey of Personal Incomes so assess the magnitude of taxable income responses of the self employed.
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Current research
Started: 01 November 2010
Started: 28 September 2010
Started: 17 March 2010
Impact on Society
In light of Government objectives to increase environmental taxation, we investigate whether the UK tax system is becoming more or less ‘green’.
The IFS has made valuable contributions to the debate on VAT and its impact on the poor.
The IFS played a key role in the debate about who the tax and benefit changes in recent ‘Emergency Budget’ hit hardest.
Changes to the benefit system recommended by IFS researchers have made working less than 16 hours a week more attractive to benefit recipients.
The IFS played a key role in informing the public during the 2010 election campaign. Our comments on the parties’ tax plans were quoted by the party leaders in their debates.
The Mirrlees Review shows the importance IFS attaches to high quality empirical evidence in the design of tax and benefit system.
Our ERA analysis contributed to the evaluation literature and informed the Government about the validity of the experimental findings.
IFS evaluated the Pathways to Work programme. This work proved key to the policy debate about how to get disability benefit claimants in work.
Proposals by IFS researchers to simplify the benefit system and strengthen the incentives for low-skilled adults to work have attracted the attention of Iain Duncan Smith, Secretary of State for Work and Pensions.
IFS researchers found that the In-Work Credit encouraged lone parents to leave benefit more quickly but did not increase work retention.
An IFS economist advised a “Citizens Jury” on the welfare system, including basic facts and important issues about its purpose and structure.
IFS researchers develop a model of the Mexican tax system that will be used by the Mexican Government analysts.
IFS researchers and the World Bank plan to develop capacity and tools in developing countries for the comprehensive analysis of tax reforms