The proportion of lone-parent households receiving the Working Families Tax Credit increased by 30 per cent the year after the Family Credit regime was abolished in April 1999. An additional 135,000 lone mothers were in employment by the end of 2001.
Professor Marco Francesconi of the University of Essex, who carried out the research with his colleague Professor Wilbert Van de Klaauw, said that the findings proved that 'in-work benefits for lone mothers are effective'. He said, 'Those with pre-school children benefited most from the reform. This is surprising, because pre-school children often need more support than older children. But the research proves that the financial incentives are very attractive for the women who need them most.'
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