Tax credits have been Gordon Brown's big idea for the British welfare state. He has used them to deliver unprecedented sums of money to poorer families and begin to reverse the steep rise in child poverty seen throughout the 1980s.
But, like all welfare reformers, the Chancellor must struggle with the "iron triangle" - the conflict between encouraging work, reducing poverty and keeping down costs. With the Government having set itself increasingly challenging targets for child poverty right out to 2020, these conflicts can only intensify.
Authors
Robert Chote
Comment details
- Publisher
- IFS
Suggested citation
Chote, R. (2005). Does the Government have the means to make child poverty history in Britain? [Comment] IFS. Available at: https://ifs.org.uk/articles/does-government-have-means-make-child-poverty-history-britain (accessed: 1 July 2024).
More from IFS
Understand this issue
Election Special: Your questions answered
podcast
In the final run up to the election, we answer your questions about everything from borrowing to AI to the part that luck plays in the economy.
27 June 2024
Election Special: The big issues politicians haven't spoken about
podcast
What are the manifestos missing? What are the big challenges facing us? And what information should voters be aware of as they head to the polls?
25 June 2024
Election Special: The Labour manifesto explained
podcast
We discuss the Labour manifesto launched on Thursday and give our reaction to the policies and pledges within it.
14 June 2024
Policy analysis
How would the parties’ tax and spending plans affect Scotland and Wales?
report
This ‘explainer’ looks at how the parties’ proposals would affect Scotland and Wales, covering tax, spending, public finances and the constitution.
28 June 2024
What are the parties’ plans for benefits and taxes?
calculator
Use our simple interactive tool to see how the parties’ plans for benefits and taxes would impact household incomes over the next five years.
24 June 2024
Plaid Cymru manifesto: a response
comment
An assessment of the tax and spending changes proposed in the 2024 Plaid Cymru general election manifesto
13 June 2024
Academic research
Intertemporal income shifting and the taxation of business owner-managers
journal article
We show that responses of UK company owner-managers to personal taxes are due to intertemporal income shifting and not reductions in business activity
24 January 2024
Insurance, redistribution, and the inequality of lifetime income
working paper
This paper studies how the tax-and-transfer system mitigates income inequalities over the lifetime, which can lead to disparities in living standards.
2 November 2023
Symposium: tax equity around the world - introduction
journal article
This set of issues was showcased at the 4th World Bank Tax Conference in September 2022, which focused on ‘Global Tax Equity’.
11 September 2023