A reconsideration of tax credit cuts Contents

Contents

Terms of reference

Summary

1 Introduction

2 Effects of the proposed reforms

Tax credits

Losses

Incentives to work

Budget package

Personal allowance

National Living Wage

Childcare

Total effects of the package

Treasury analysis

8 out of 10

Distributional analysis

Conclusions

3 Mitigation

Lower taxes and higher wages

Taxes

Wages

“The answer to tax credits is tax credits”

Changes to tax credits

Structural adjustments

Gradual implementation

Protecting existing claimants

Fiscal wriggle-room

Conclusions

4 Wider context

Universal Credit

The wider welfare system

Beyond working age benefits

A debate on the future of welfare

Conclusions and recommendations

Annex: detailed analysis of effects of reform options on an indicative family

Formal Minutes

Witnesses

Published written evidence

List of Reports from the Committee during the current Parliament




© Parliamentary copyright 2015

Prepared 9 November 2015