The new credits represent developments of tax֢enefit reforms implemented in the last Parliament, but Labour's manifesto also contains proposals for ѡsset-based' welfare, which would represent more of a new departure. In particular, the party plans to introduce two new policies ֠the Child Trust Fund and the Saving Gateway. Both are targeted towards low-income households and provide financial assistance in the form of assets. This method of asset-based welfare delivery contrasts with (and is intended to complement) the traditional approach of providing social security benefits as income supplements. Section 2 considers some of the arguments for and against the proposed new approach.
Finally, we consider Labour's approach to income tax.