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<p>The following table is based on finalised tax credits administrative data for each
financial year. The latest data available are 2012-13.</p><p> </p><table><tbody><tr><td
rowspan="2"><p>Tax Year</p></td><td><p> </p></td><td colspan="3"><p>Proportion of
households in receipt of tax credits who are classified as 'in work'</p></td></tr><tr><td><p>Proportion
of households in receipt of tax credits who are classified as 'out of work'</p></td><td><p>Households
who are classified as self employed only</p></td><td><p>Households who are classified
as employed only</p></td><td><p>Households who are classified as both employed and
self employed</p></td></tr><tr><td><p>2008-09</p></td><td><p>23%</p></td><td><p>6%</p></td><td><p>63%</p></td><td><p>8%</p></td></tr><tr><td><p>2009-10</p></td><td><p>24%</p></td><td><p>7%</p></td><td><p>62%</p></td><td><p>8%</p></td></tr><tr><td><p>2010-11</p></td><td><p>23%</p></td><td><p>7%</p></td><td><p>62%</p></td><td><p>8%</p></td></tr><tr><td><p>2011-12</p></td><td><p>25%</p></td><td><p>8%</p></td><td><p>58%</p></td><td><p>8%</p></td></tr><tr><td><p>2012-13</p></td><td><p>32%</p></td><td><p>10%</p></td><td><p>51%</p></td><td><p>7%</p></td></tr></tbody></table><p><strong>
</strong></p><p> </p><p>The increase in the proportion of out of work and self employed
households in 2012-13 (and the decrease in the proportion of employed households)
can largely be explained by the removal of the ‘Second Income Threshold' of tax credits
in April 2012. This policy change removed a large number of higher income households
from the population. As self employed and out of work households generally have lower
incomes, they were less affected by this change and so their proportion in the population
has increased.</p>
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