What is the Poverty Trap?

-This affects People who are in Poverty, which may be due to Reliance on State Benefits, Mean Tested Benefits and Low Wages -Here, when people get Higher Wages, they only get a Smaller % of their Wage Increase, because they have to pay Income Tax and National Insurance and their Benefits will be Reduced. Furthermore Transportation and Childcare costs? -This could even lead to a Drop in their Disposable Income, and their Marginal Tax Rate will be High (% that'll be taken from the next £ they earn) -Combining Income Tax, National Insurance, and the Benefit System, can make it Financially Bad for People to find Work, or Increase the Number of Hours they work. Hence they are Trapped