Inequality and redistribution under New Labour

In: Benefits: A Journal of Poverty and Social Justice, Volume 13, Issue 2, p. 109-114

Abstract

While Tony Blair has stated that income redistribution is not an explicit aim of his government, many of the changes it has made to the tax and benefit system have been redistributive. The experience to date highlights the challenge New Labour faces if it is to make further progress in reducing poverty and inequality. All the resources they have directed at low-income households since 1997 – and these have been considerable – have just about reduced child poverty by a quarter, while overall poverty rates and inequality have only fallen marginally or not at all. To reduce poverty further will require substantially more redistribution to the poorest, especially those unable to work. To reduce inequality will almost certainly require something to be done to curb the growth in very high incomes, as well as measures to address the long-term drivers of inequality.