The effects of taxes and benefits on income inequality, 1980–2009/10

Grace Anyaegbu
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Grace Anyaegbu: Office for National Statistics

Economic & Labour Market Review, 2011, vol. 5, issue 8, 1-20

Abstract: SummaryThe ONS analysis of The effects of taxes and benefits on household income, most recently published in May 2011, examines how the Government's intervention, through taxes and cash benefits, redistributes income among households. The amount by which taxes and benefits redistribute income from richest to poorest, known as their redistributive effect (see text box, ‘Measuring income inequality’) is usually measured by comparing inequality before and after they are added. This periodic analysis updates ‘The redistribution of household income 1977 to 2006/07 article’ published by ONS in 2008. However, it goes further, by separating the redistributive effects over time into two parts, (i) the size of taxes and benefits, and (ii) the rate at which taxes and benefits redistribute income.

Date: 2011
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