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Examples
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All of which is a little odd, given that falling wages, soaring in-work poverty and rock-bottom consumer spending suggest that in-work tax credits should be coming into their own right now.
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It will make work pay for the first time, tackling in-work poverty and lift over 1 million people, including 450,000 children, out of poverty.
400,000 children will fall into relative poverty by 2015, warns IFS 2011
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'Falling wages, soaring in-work poverty and rock bottom consumer spending suggest that in-work tax credits should be coming into their own right now.'
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Tax credits, which top up in-work incomes, have played a major role since they were launched in 2003 in the shift to part-time work, because they allow workers to maintain a large proportion of their full-time wage.
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It would also be useful to mirror the in-work support that they will be providing to those they place in work.
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And, contrary to what many think, even the living wage is nowhere near enough to ensure a typical household can live independently of state support: it has always been premised on full take-up of in-work tax credits, otherwise its level would shoot up to well above £10 an hour.
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Given the commitment to reduce "in-work child poverty", it says it is not enough to limit debate to the "traditional discussion" that raising the minimum wage, now at £6.08 an hour, would discourage job creation.
Anti-poverty plan is failing millions, claims Rowntree report 2011
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Given Duncan Smith's evangelical approach, a far cry from the dry technocrats who recently filled the chair, it's pretty clear we will see bigger carrots for in-work benefits and, presumably to pay for them, bigger sticks for out-of-work benefits.
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Even if No 11 relents, Duncan Smith will have a turf war with mandarins over tax credits, essentially in-work benefits run out of the Treasury.
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Bringing all out-of-work and in-work support together in a single system for working age adults, so integrating tax credits.
Duncan Smith shakes up benefits in bid to cut costs and increase job incentives 2010
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