Explain how the UK tax and benefit system is used to redistribute incomes

Income taxes in the UK are progressive in nature, where an increasing percentage of income is paid to the government depending on the individuals earning level. Because higher earners pay more than lower earners income taxes reduce the gap between them.
Alongside this, the tax revenue gained is redistributed to low earners to further decrease the gap.This is done through the benefits system, where those who are unemployed, earning below certain income levels, or with specific circumstances, such as children, receive payments from the government which do not need to be repaid.

OR
Answered by Olivier R. Economics tutor

2354 Views

See similar Economics GCSE tutors

Related Economics GCSE answers

All answers ▸

Explain why house prices fell during the 2008 financial crisis.


How should put in my essays for 25 mark questions?


Why does a govt focus on economic growth as a primary objective and should it always pursue this objective. Give reasons for your answer.


Explain one negative externality that could occur due to the building of a new airport


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2025 by IXL Learning