Tax and Social Security
In a bizarre recent story a woman was told by the Government that she was to have her social security withdrawn due to a suspected fraudulent claim. The private company contracted by HMRC to search for fraud in the tax system, Concentrix, had determined that she was not living alone as she had claimed, but was instead cohabiting.
While the UK's benefits system is progressive, our tax system places a disproportionately heavy burden on the poorest when compared to the richest, exacerbating the UK's already extreme levels of inequality.
Our briefing note analyses data from the Office for National Statistics, Effects of Taxes and Benefits on Household Income publication to find that:
Although the new Work and Pensions Secretary has stopped cuts to disability benefits he seems to be in lock-step with his predecessor in worrying that the benefit system “locks people into workless-ness”.