Combining Welfare-to-Work Measures with Tax credits: A New Hybrid Approach to Social Security in the United Kingdom

The changes described in this article reflect a shift in social security away from social insurance and towards a mixture of social assistance, occupational or private insurance and tax credits. It suggests that what is new and distinctive about UK social security policy is the way in which a new strategy has been forged by linking the New Deal, which provides job opportunities for people who are not in employment but can often only offer them low-paid jobs, with tax credit schemes, which provide in-work benefits and are designed to ensure that, if necessary, people accept poorly paid employment.