Explain how the UK tax and benefit system is used to redistribute incomes

Income taxes in the UK are progressive in nature, where an increasing percentage of income is paid to the government depending on the individuals earning level. Because higher earners pay more than lower earners income taxes reduce the gap between them.
Alongside this, the tax revenue gained is redistributed to low earners to further decrease the gap.This is done through the benefits system, where those who are unemployed, earning below certain income levels, or with specific circumstances, such as children, receive payments from the government which do not need to be repaid.

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Answered by Olivier R. Economics tutor

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