The policy does not help poor families who are out of work, because they do not pay tax. Tax credit confusion Eyebrows have been raised at the children's tax credit's qualification rules. The issue is which 'taxation unit' is used, the individual or the family. In recent years individual taxation has prevailed. However, the benefits system normally works on the basis of the family.
Income support is calculated on the basis of whether the claimant is single, married and a parent.
Likewise, the working families' tax credit. Tax credits are one of Labour's key social policy innovations, though they were conceived in the United States. The idea is to use the tax system in the same way as the benefits system. The novel aspect is that the tax system can be used to give people as well as take it away. Traditionally, the tax system takes money away for various purposes such as maintaining services.