Introduction
PERU’s work within incomes, work and poverty is concentrated on policy simulation modelling and quantitative data analysis on incomes, poverty and the labour market.
PERU maintains and develops the Institute of Public Policy Research (IPPR) Tax-Benefit Model, which simulates the effects of the UK taxes and benefits on a sample of the population. The Model provides estimates of the effect of policy on government expenditure on the distribution of income and on levels of poverty. It also facilitates ‘nowcasting’ – predicting the distribution of income over the next few years – and policy simulation – estimating the effects of proposed changes to the tax and benefit system. The Model is used by partner organisations and by PERU as part of a range of research projects.
Partner organisations using the model include: the IPPR; the Resolution Foundation; the Joseph Rowntree Foundation (JRF); the New Economics Foundation; the Legatum Institute. The New Economic Foundation use the model for their analysis of Universal Basic Income (UBI) and Minimum Income Guarantee (MIG) approaches to social security. The Legatum Institute also use the Model in their analysis of poverty projections.
PERU has used the model on projects including:
- an economic evaluation of a Citizens Basic Income for Scotland. Findings were featured on Basic Income Scotland, Scottish Housing News and The Courier News. In addition, JRF reference this work in their report that considers whether a UBI approach is feasible.
- alleviating child poverty referenced by the Scottish government in their evidence review for their plan for tackling child poverty 2022-2026.
PERU holds a continued interest in low paid work and in-work poverty, with the book Idleness being released in October 2022. Currently, workstreams include projects focusing on local housing allowances and work incentives in the tax and benefit system. PERU is also providing advice to the Health Foundation on building a dynamic microsimulation model of health demand, and is involved in the Good Employment Learning Event (led by the business school at MMU).
