Department for Work and Pensions: Tax credits caused poverty trap
A government spokesperson responds to the IFS report:
“The IFS acknowledge that universal credit will substantially reduce child poverty. It will make work pay for the first time, tackling in-work poverty and lift over one million people, including 450,000 children, out of poverty.
“Our wide-ranging reforms will have a dynamic impact on some of the poorest families, encouraging people into work, many for the first time and improving the life chances of children at an early age.
“Over the last decade billions of pounds have been moved around the tax and benefit system in an attempt to address poverty.
"This has had the perverse effect of trapping thousands of families on benefits while income inequality increased to its highest ever level. It is clear that sticking with the status quo which has had no meaningful long-term effect on poverty projections is not an option.”
