Benefits and tax credits - Hilary Hoynes, Robert Joyce and Tom Waters

20.500.12592/8bbx4d

Benefits and tax credits - Hilary Hoynes, Robert Joyce and Tom Waters

2 Feb 2023

Source: Figure 9 of Hoynes, Joyce and Waters (2023) £ per year (2021-22 prices) % of GDP But clear impact of austerity between the last two recessions… £3,500 7% £3,000 Real spending per capita 6% (working-age, left axis) £2,500 5% Share of GDP (working- £2,000 4% age, right axis) £1,500 3% Austerity £1,000 2% £500 1% £0 0% Note: reflecting how administrative data are provided, ‘working-age’ is he. [...] Source: Figure 9 of Hoynes, Joyce and Waters (2023) £ per year (2021-22 prices) % of GDP …which was concentrated on the working-age population £12,000 £10,000 Pensioner expenditure £8,000 per pensioner £6,000 Austerity £4,000 £2,000 Working-age expenditure per working-age adult £0 Note: reflecting how administrative data are provided, ‘working-age’ is here defined as being under the female state p. [...] Source: Figure 9 of Hoynes, Joyce and Waters (2023) £ per year (2021-22 prices) The rise and rise, and fall, of means-tested benefits Working-age benefit spending (2021-22 prices) per capita £3,500 £3,000 £2,500 £2,000 Means-tested £1,500 £1,000 Contributory £500 Other £0 Source: Figure 18 of Hoynes, Joyce and Waters (2023) Working-age benefits by type Annual spend per working-age adult (2021-22 p. [...] Source: Table 3 of Hoynes, Waters and Joyce (2023) Effective tax rate Average effective tax rates Parents in paid work and in low-earning (bottom tertile) households 1997 2022 (without UC) 2022 (with UC) 60% 50% 40% 30% 20% 10% 0% 0 to 20 hours 20 to 40 hours Change in working hours Note: effective tax rate measures additional tax paid or benefits withdrawn as a % of the increase in pre-tax earnin. [...] Source: Table 3 of Hoynes, Waters and Joyce (2023) Effective tax rate “Conditionality” also appears to lead only to more part-time employment 35% 30% 25% Impact of 20% conditionality 15% In absence of 10% conditionality 5% 0% -5% 1-15 16-23 24-29 30+ Weekly hours of paid work Note: Figures are estimated effects of the UK Lone Parent Obligation reforms, phased in between 2008- 2012.

Authors

Tom Waters

Pages
21
Published in
United Kingdom