WIDER POLICIES
UK Income Policy
Key Policy:
- Working Tax Credits
Since the Labour Government came into power in 1997, it has introduced a number of major policy initiatives to boost the incomes of families with children: their out-of-work benefits (Income Support, etc) have risen by around 30% more than inflation and their in-work benefits (tax credits) have been substantially boosted both in terms of the amounts of money a family receives and the numbers of families who are eligible.
In contrast, adults without dependent children have faired much worse: their out-of-work benefits have been limited to inflation-only rises and, until recently, none of them were eligible for tax credits.
The contrast in the fortunes of low income families with and without children is illustrated in the Government's poverty figures: whereas the number of families in income poverty has fallen slightly since the mid-1990s, the number of working-age adults without dependent children living in households in income poverty has risen slightly.[1]
The main exceptions to the Government's focus on families are the National Minimum Wage - which applies to everyone - and the Working Tax Credit introduced in April 2003 - which is the first tax credit which people in work but without children can apply for. According to figures released in April 2007, there are around 340,000 claimants of tax credits without children who are getting Working Tax Credit.[2]
Clearly, if either the National Minimum Wage or Working Tax Credit were raised, this would help boost the earnings of those single homeless people who are doing some low paid work. Such possibilities are not discussed further here as they are part of a much bigger debate about low pay rather than being specifically about homelessness.
There are, however, a number of characteristics about the current Working Tax Credit arrangements which potentially discriminate against some single homeless people. In particular, to qualify, a single person must be working at least 30 hours per week and must be aged 25 or over, although neither of these restrictions apply to people with children. Anecdotally, many single homeless people work only part-time and would thus not qualify. It is also well known that homelessness disproportionately affects young people.[3]
End notes
[1] Households below average income, 2006/07, Department of Work and Pensions. The statements in the text refer to the numbers living in households with below 60% of median household income after deducting housing costs - one of the main low income thresholds that the Government itself uses to monitor progress on its poverty targets. Back to text
[2] HM Revenue & Customs, 2007. Back to text
[3] For example, around a third of single people officially recognised as homeless in Scotland are aged 24 or less (age breakdowns are not available for England). Back to text
Page last modified on 01/04/2009 at 11:52
