New Deal (United Kingdom) - Purpose

Purpose

The New Deal introduced the ability to withdraw benefits from those who refused "reasonable employment". A complementary project was introduced in 1999, the Working Families Tax Credit. This is a tax credit scheme for low income workers which provides an incentive to work, and to continue in work.

Professor Richard Beaudry, from the Department of Economics at the University of York, defined as follows the New Deal in a 2002 paper, Workfare and Welfare: Britain’s New Deal (pp. 8–9) : "The New Deal reforms promise eventual reform of welfare assistance for all benefit recipients."

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