'Negative income tax' should be introduced to tackle welfare says IEA

The Daily Telegraph looks at the IEA's proposals on welfare reform

Britain's welfare state may be facing the biggest shake-up since Sir William Beveridge but the Coalition has not gone far enough, says The Institute of Economic Affairs (IEA).

The influential think-tank has called for Iain Duncan-Smith, the Work and Pensions Secretary, to scrap large swathes of the social benefits system and goad people into work with a radical "negative income tax".

The author of the paper, Kristian Neimietz, the IEA's Poverty Research Fellow, has argued for the level of basic income support to be lowered, and for benefits including child tax benefits, the winter fuel allowance and free bus passes to be abolished for the middle classes.

Read the rest of the article on The Daily Telegraph website.

Invest in the IEA. We are the catalyst for changing consensus and influenci