Benefits and Headaches

Summary


The disincentives apply mainly to parents and particularly to lone parents, for whom the average marginal tax rate is 57 per cent. The alternative, as Freud proposes, is to stamp out the skivers by giving them "personal advisers" from private sector firms who can recommend benefit withdrawals, particularly from lone parents of children aged 11 or over.

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Extract


Benefits and Headaches

Anybody who tries to understand the benefits system is likely to get a sizeable headache. Reading David Freud's 144-page welfare report for the Department for Work and Pensions, published last Monday, gave me one that lasted all day. For exam...

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