Tax, benefits and the economy

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We want to understand how the functioning of the UK economy impacts economic, social, physical and emotional well-being. This includes the tax and benefits system and the regulation and state provision of goods and services.

We fund research to examine the degree to which the tax and benefits system provides insurance and security over people’s lifetimes and how it affects choices in relation to work, education and personal finances. We seek to identify how the system enhances or impedes outcomes for individuals and families, as well as the characteristics of a system that could be considered fair and equitable, and the changes needed to deliver that.

As society adjusts to turbulent and uncertain growth in the economy, earnings and productivity following the COVID-19 pandemic and in the post-Brexit world, we are interested in the consequences for individuals, businesses and state. We wish to explore the types of economic policies and systems that enhance individual and social well-being and challenge existing inequalities.

We also fund research examining how the costs and benefits of the transition to a net zero emissions economy might be shared fairly across the population and across generations.

Our team


  • Alex Beer headshot
  • Catherine Dennison headshot

Our impact in tax, benefits and the economy


  • Improved scrutiny of government proposals for tax and benefit reform is now possible thanks to the first free-to-access tax and benefit microsimulation model for the UK, developed by the Institute of Social and Economic Research at the University of Essex, UKMOD. Current users include local and devolved governments, parliament and devolved assemblies, other public sector bodies, think tanks and research institutes and NGOs.

  • The annual IFS Green Budget is highly influential with policymakers provides a comprehensive, independent assessment of the state of the public finances and key economic challenges. The 2021 Green Budget examined how government may secure a lasting recovery and deliver on its other objectives and priorities in the context of the COVID-19 pandemic.

  • The reform of ‘Entrepreneurs’ Relief’ in April 2020 drew on research from the IFS which highlighted inefficiency, unfairness and complexity in how the tax system treats different forms of work.

Tax, benefits and the economy projects

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We aim to improve people’s lives by funding research that informs social policy, primarily in Education, Welfare and Justice. We also fund student programmes that give young people skills and confidence in science and research.

We are an open, collaborative and engaged funder that offers more than money. Through connecting the individual projects we fund, we strengthen their collective impact and give voice to an overarching narrative.

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