HC Deb 25 November 1982 vol 32 c562W
Mr. Arnold

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

Mr. Newton

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he pays higher income tax and social security contributions and because his means-tested benefits are reduced or withdrawn.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.