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Labour's tax and benefit increases prevent rapid rise in income inequality

Mike Brewer, James Browne, Alastair Muriel, David Phillips and Luke Sibieta
Press release

The tax and benefit measures implemented by Labour since 1997 have increased the incomes of poorer households and reduced those of richer ones, largely halting the rapid rise in income inequality we saw under the Conservatives. Despite this, inequality was still slightly higher in 2007-08 than when Labour came to office, according to the first set of Election Briefing Notes to be released by the IFS to help inform public debate during the general election campaign.

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Briefing note
This Election Briefing Note describes the main tax and benefit reforms since 1997, and shows how they have affected total government revenues.
Briefing note
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Briefing note
In this Briefing Note, we assess the changes to living standards that have occurred under the first 11 years of the Labour government and compare these changes with what happened under previous governments.