The poverty trap that still exists today is a legacy from the Thatcher years. The problem is that many unskilled people with families cannot afford to work because the minimum wage is set too low and is not relative to the economy. Eg: Three of the largest supermarket chains have all enjoyed a rise in profits year on year, yet the majority of their respective workforces's remuneration is subsidised by the taxpayer by way of the tax credit system. Scrap the current system, raise the minimum wage to a decent level and means test the companies who claim they cannot afford to pay the statutory rate. Sorted
Unless we give a real incentive to people to work the status quo will remain irrespective of whatever government is at the helm.
