Tax credits are far, far better than a living wage | Kate Andrews writes for The Telegraph

As part of 'National Living Wage Week', Head of Communications at the Adam Smith Institute, Kate Andrews, wrote an article for The Telegraph on the downfalls of the National Living Wage and why tax credits are a better alternative.

In-work poverty might just be one of the biggest problems the UK will face in upcoming years. The damning combination of low wages and high costs of living is making it impossible for millions of households to liberate themselves from benefits and state support; the price of self-sufficiency has been set so high, even full-time workers can’t afford it.

This recent war over tax credit cuts exemplified this growing problem. Even to those of us who would like the see this government take a more forceful approach in deficit reduction, it seemed illogical to axe away at one of the few benefits that works as a direct cash transfer to the poor, while still incentivizing work.

 

Read the full article here.