Comment
The Institute for Fiscal Studies has published a comprehensive analysis of the impact of the government’s current tax and benefit plans and the National Living Wage on household incomes and financial work incentives. This Observation article summarises the main findings of that report ahead of the 2015 Autumn Statement, when the Chancellor is expected to announce amendments to his planned cuts to tax credits. The report finds that both the package of tax and benefit changes, and the new ‘National Living Wage’ will, on average, strengthen incentives to move into paid work and to work more if in work.