Distributional effects -

A central part of the IFS’s contribution to public debate is our analysis of the distributional effect of taxes and benefits, both following Budgets and in wider research. Using large household datasets together with a model of the personal tax and benefit system, IFS researchers evaluate tax and benefit changes on households across the income distribution. Recent research has begun to consider the distributional effect of policies on the basis of lifetime income, rather than annual or monthly income.

Selected highlights

Briefing note

The effect of taxes and benefits on UK inequality

The tax and benefit system is a key tool for a government trying to reduce inequality. In this briefing note, we examine the effects that cash benefits and taxes had on UK inequality in 2016–17.

Video clip

Who is paying income tax?

Who pays income tax? And how much is coming from the richest? Helen Miller, Associate Director at the Institute for Fiscal Studies, answers these common questions.

Journal article | Fiscal Studies, Volume 36, No. 3, September 2015

The Effect of the UK Coalition Government's Tax and Benefit Changes on Household Incomes and Work Incentives

This article looks at the effect of the UK Coalition Government's tax and benefit changes on household incomes and work incentives.