HM Revenue and Customs Working Paper 2: Did Working Families’ Tax Credit work? The final evaluation of the impact of in-work support on parents’ labour supply and take-up behaviour in the UK
This paper provides an evaluation of the impact of Working Families’ Tax Credit (WFTC) on the labour market behaviour of families with children. It makes use of data from all of WFTC’s 42 month history (from October 1999 to March 2003), and therefore updates preliminary work first published in December 2003. Because entitlements to WFTC were increased in real terms at least every 12 months, this paper looks at both the immediate impact of replacing family credit with WFTC, and the cumulative impact of the changes to in-work support between April 1999 and March 2003.
This paper is part of the project called “Econometric Research: Impact of Working Families’ Tax Credit” funded by the Inland Revenue.