4 ms·
Isn't it the opposite? It fills the gap by providing poorer people free child care where richer ones can afford it by themselves?
by jobigoud 7y ago
Isn't it the opposite? It fills the gap by providing poorer people free child care where richer ones can afford it by themselves?
- pluma 7y agoSo someone making £100k can afford it more than someone making £99.999k? Means-tested only makes sense if you have a progression instead of a hard cut-off, otherwise it creates these pits of despair. It's similar with welfare in Germany: if you have an extremely low-paying job, welfare will "top up" your income up to the same level as someone with no job. So until you break even, working an extra hour or taking a job that pays slightly more is economically pointless because it has no effect on your bottom line: every extra Euro you earn gets deducted from the welfare benefits. This encourages undeclared work, losing the government money via taxes.