Project Leader: Alan Marsh
Period (Wave 3): April 2001 to September 2002
Sponsor: Department for Work and Pensions (formerly Department for Social Security)
Background and Aims
This is the third wave of a panel study that began in 1999. The study was designed to measure the effectiveness of government work incentive measures designed to 'make work pay', in particular the introduction of Working Families' Tax Credit in October 1999, and the Children's Tax Credit in April 2001. It was designed to measure the effects of policy on living standards, and child poverty.
Study Design
The first two waves of the panel study were of low-income families. The third wave is extended to all families with children. The method being used is face to face interviews, using CAPI, and conducted by the National Centre for Social Research. Interviews last 60 minutes with the main respondent, and 20 minutes with the partner (if any). To date half the interviews have been with lone parents; at wave 3 this will fall to about 1/3 given the extension to higher income couples with children. In addition to the panel survey, the survey has boosters to make it representative in each contemporary year.
Importance of Research
The survey is the main vehicle for government to assess progress against targets for reducing child poverty by half by 2010, and completely by 2020. It is also the main means that Inland Revenue is relying upon to evaluate the effectiveness of WFTC and other tax credits being introduced.
Project Leader: Alan Marsh
Period (Wave 2): March 2000-June 2001
Sponsor: DSS
Background and Aims
The study aims to investigate the effectiveness of work incentive measures in enabling low-income families with children to obtain and remain in employment. It also provides information about low-income families with children, including their living standards (broadly defined). PSI, in partnership with the National Centre for Social Research, conducted the first wave of 'SOLIF' (Survey of Low Income Families) in 1999. The sample comprised lone parents, and couples who were (a) workless, or (b) receiving Family Credit (FC), or (c) on low earnings, selected from a sample of families receiving Child Benefit. There were additional samples of a cross-section of FC recipients, and an inflow sample of FC recipients. WFTC replaced FC in October 1999 - replacing a cash benefit with a new 'tax credit'.
Project Design
The wave 2 fieldwork is planned to have two main elements:
A. Follow-up interviews with the 1999 achieved sample. This is the panel element, and follows the pattern of PSI's PRILIF 'cohort' study of lone parents during the 1990s. All families are to be re-interviewed (respondents and any partners) regardless of any changes in circumstances (i.e. there is to be no screening exercise, movers are to be followed even if outside sampled postal areas).
B. Achieving a new representative cross-section of lower income families by:
1. Re-screening the families found to be ineligible at wave 1
2. Screening new Child Benefit recipients in the selected areas (specifically
new families and in-movers to those areas).
Importance of Research
The government aims to eliminate child poverty in twenty years. The theme of 'making work pay', particularly through WFTC, is a key element of this. The other key theme is 'welfare to work', emphasising moving people off benefits and into work. This study is best placed to provide timely information on progress towards achieving the overall aim of reducing child poverty. It is best placed (with its 'before-and-after' design) to evaluate the effects of WFTC, and will provide data on the progress of more active labour market and benefits policies.