Monday, August 3, 2009

The Poor Receive Less Help Under Labour

Figures published by the Office of National Statistics show that the poorest 5 million households are paying more in tax and receiving less in benefits than before Labour came to power. With the perverse incentives caused by multiple means-tested benefits, making it more expensive to be in some jobs than to be unemployed, Britain's social security system is broken.

% of total taxes paid 1996-97 2007-08

Poorest households 6.8% 7.0%
Richest households 41.3% 42.2%

% of total benefits received

1996-97 2007-08

Poorest households 28.1% 25.9%
Richest households 10.1% 10.6%

See http://www.cps.org.uk/cps_catalog/A_House_Divided_.html#a694 for more details.

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