Welcome to the 82nd edition of our Newsletter EdGenie's 📜 Sunday Scroll...

Every Sunday I send out actionable tips, tricks and real-world application insights from my 15 year experience coaching students to achieve As and A*s in their Economics A Levels via EdGenie.

Hey Genies, 👋

94%. 😳

Let that number sink in. 📉

That's the harsh reality — only 6️⃣ out of every 100 A-level Economics students secure that top grade. 🎯

Why? 🤷‍♂️

Because most students don't take action. 🚫

They think they can get by without help, without guidance, without putting in the right kind of work. 😔

It blows my mind 🤯 how many students and even parents don’t ask for support.

❌ They don't ask questions.
🚧 They don't get the feedback they need.
⏳They don't put in the consistent effort required.

The result?

They fall short of the grade they deserve. 📌

But here's the truth:
🤝 All it takes is some support.
🗺️ All it takes is clear guidance.
📅📍At the right time, from the right place.

Whether that's through ourEdGenie Easter Accelerator 🚀 programme or daily support on EdGenie 📚, or even if it's somewhere else—just make sure you do something. ✅

Make the decision today to change your trajectory. 🌟

Because the cost of NOT getting support is far greater than you realise—it's missing out on your dream university 🎓, future opportunities 🌎, and even your confidence 💪.

You don't have to be part of the 94%. 🙅‍♀️🙅‍♂️

Take action. 🏃‍♂️

Seek support. 🗣️

Get the guidance you need to secure your A*. 🥇

You've got this, Genies. ✨

Cheers,

Emre

• 💷 Pay Rise Penalty: A tiny pay rise over £100k can leave families tens of thousands worse off due to lost childcare support 🧮
  
  
• 🧸 Childcare Cliff Edge: Families lose entitlement to free childcare if one parent earns over £100k, creating a steep financial ‘cliff’ 🧗
  
  
• 📉 Work Less to Earn More: Many parents reduce hours or make pension contributions to stay under the threshold – at the cost of career growth ⏳
  
  
• 💡 Creative Workarounds: Parents turn to salary sacrifice, self-employment or bonus deferrals to remain eligible for childcare benefits 🛠️
  
  
• 👩‍👧 Inequity for Single Parents: A sole earner at £120k loses benefits, while two earners at £60k each keep full support – creating unfair outcomes ⚖️
  
  
• 👩‍💼 Women Carry the Burden: Many high-earning women go part-time, often still working full-time hours, just to retain childcare help 👩‍👦‍👦
  
  
• 👶 Family Planning Affected: Couples are delaying or limiting children due to childcare cost burdens – some tragically missing out altogether 🍼
  
  
• 🧾 Lack of Awareness: Many parents unaware of the tax trap until it’s too late, often facing surprise tax bills 💥
  
  
• 📚 Employers Stepping In: More employers offering workshops, salary warnings, and tax advice to help staff navigate the system 🏢
  
  
• 📈 Negotiating Power: Some professionals use tax impact arguments to secure higher salaries when changing jobs 💬
  
  
• ⚠️ Tax Timing Troubles: Bonuses near tax year-end complicate planning; some firms now allow staff to ‘pension’ their bonuses in advance ⌛
  
  
• 🏥 NHS Specific Struggles: NHS doctors face a double whammy: defined benefit pension complexity and fear of breaching thresholds, leading to fewer shifts worked 🏥
  
  
• 👨‍👩‍👦 System Complexity: Families must consider a web of factors: pension rules, tax brackets, salary timing, and even nursery fee quirks 🧶
  
  
• 📊 Economic Impact: Widespread behavioural changes could harm UK productivity and growth – contradicting government goals 📉
  
  
• 💼 Calls for Reform: Experts suggest scrapping thresholds or raising the limit to match inflation, but cost and politics are major hurdles 🗳️
  
  
• 🗣️ Voices for Change: Organisations like the BMA push for removing the £100k limit due to workforce shortages and growing childcare needs 📢

Q. Analyse how the £100,000 childcare threshold represents a distortion in the labour market.
A. The threshold creates a strong disincentive to work or earn beyond £100,000, as marginal tax rates become effectively very high due to the withdrawal of childcare benefits. This leads to a labour market distortion, where individuals reduce their working hours or avoid promotions, which is allocatively inefficient. Labour supply contracts despite increased demand, especially among skilled workers. Productivity falls, particularly in sectors like healthcare, where shortages are critical. This reduces potential output and GDP growth, showing a misallocation of human capital.

Q. Evaluate the impact of the £100,000 threshold on income inequality and equity in the tax system.
A. The policy arguably reduces horizontal equity, as two households earning £120k (one single earner vs. two at £60k) are taxed very differently. It may also worsen vertical equity, as high earners pay disproportionately more, but without a smooth marginal rate structure. Some argue it's progressive, targeting support at lower-income families. However, behavioural responses like reducing work hours undermine income equality by pushing middle-high earners down the income distribution. It creates inequities not aligned with ability to pay, questioning overall fairness.

Q. Discuss whether removing the £100,000 childcare threshold would improve labour market efficiency.
A. Removing the threshold would likely improve labour market efficiency by reducing the marginal tax disincentive. High-skilled workers would no longer be discouraged from taking promotions or extra hours, increasing labour participation and productivity. It may encourage women and secondary earners to remain in or re-enter full-time work. However, it would increase government spending, potentially requiring tax rises elsewhere. The trade-off between fiscal cost and economic efficiency must be carefully assessed to determine net welfare gain.

Q. Examine how ‘fiscal drag’ contributes to the growing impact of the £100,000 childcare threshold.
A. Fiscal drag occurs when tax thresholds are frozen while nominal incomes rise due to inflation. As more people cross the £100,000 threshold without real income gains, more families lose childcare benefits, worsening work disincentives. This creates a stealth tax increase and expands the number of affected taxpayers over time. It compounds inequality and makes the system increasingly regressive. Fiscal drag magnifies distortions in the tax-benefit system, raising concerns about sustainability and fairness of tax policy.

If you or your child are looking to Boost your A level Economics Grades in under 30 days, I'd recommend starting with an all-in-one support network where you get 24/7 access to a SuperTutor:

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