Publication Source
  • Low earners face effective tax rates up to 130 per cent to work more than 25 hours a week, IPPR finds 
  • Combined childcare fees, taxes and benefit withdrawal can mean working longer hours costs parents more than they earn 
  • Call for new ‘childcare guarantee’ for early years, as parents describe ‘complete nightmare’ of grappling with current system 

Tens of thousands of parents on low incomes face having to pay to return to work, as childcare costs and the universal credit taper, alongside income taxes can create an ‘effective marginal tax rate’ of over 100 per cent, according to a new report by the IPPR think tank. 

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