- The Government’s record in reducing dependency on the State is strong, but there is plenty more to do.
- Dependency has fallen by 2.7 percentage points since 2010, but over half of households still receive more in benefits (including benefits in kind) than they pay in taxes.
- Welfare reform appears to be reducing dependency. 19% of households subject to the benefit cap were in work after a year.
- Children growing up in workless households have, on average, poorer key stage 1 attainments, lower cognitive ability and are more likely to be NEET.
- New Government must continue incentivising work by reducing marginal tax rates and carefully evaluating the National Living Wage policy.
