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Home Publications Labour's tax and benefit reforms weaken average work incentives

Labour's tax and benefit reforms weaken average work incentives

Press release
Despite the Labour government's stated aim to 'make work pay', the extension of means testing has weakened incentives for many people to stay in work and increase their earnings, according to a new report by researchers at the Institute for Fiscal Studies.

The report, funded by the Joseph Rowntree Foundation, provides new evidence on the trade-off between redistributing income and improving work incentives.

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External publication
This report aims to illuminate the trade-off between work incentives and redistribution.
IFS Working Paper W06/20
This paper reviews various techniques for quantifying financial incentives to work, shows how financial work incentives have changed across the population since 1979, and estimates how much of these changes are due to changes in the tax and benefit system.