Analysis has shown that introduction of the working tax credit halted a sharp fall in the employment rate of people without children at age 25. This analysis was published in March 2008 in “Working Tax Credit and Labour Supply: Treasury Economic Working Paper No. 3”, available online at:
The Labour Force Survey, conducted by the Office for National Statistics, also shows that while working people experience substantial wage growth up to around age 25, wage growth for those aged 25 and over is much slower. Someone who is still on a low income by the age of 25 or over is therefore more likely to experience persistent poverty.