Making work pay?

Abstract

The growth of wage supplementation through in-work benefits and tax credits has been one of the most fundamental recent developments in the UK social security system. Broad statements of policy aims such as ‘making work pay’ and providing ‘support for work’ are superficially simple and clear. In practice, however, they cover a complex variety of goals and policy instruments. This article outlines the main policy measures introduced since 1997, discusses the different policy goals and highlights some of the major limitations of the current policy approach.