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Poverty Trap

Volume 32: debated on Thursday 25 November 1982

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asked the Secretary of State for Social Services how he defines the poverty trap.

The so-called poverty trap is the situation where a low-paid worker may lose a substantial part of an increase in earnings because he pays higher income tax and social security contributions and because his means-tested benefits are reduced or withdrawn. The main means-tested benefits in this context are family income supplement, free school meals and housing benefits.