In high-inequality countries like the United States, Israel, and the United Kingdom, taxes and benefits compensated only a relatively small part (one fifth or less) of the increase in market-income inequality over the period as a whole. In fact, income inequality after counting benefits and taxes increased at a faster rate after the mid-1990s than in the decade before. Countries which achieved large increases in the redistributive effect of benefits did so mainly through growing average benefit amounts, while the degree of benefit targeting (“progressivity”) changed less. The relatively small change in benefit progressivity and its limited impact on the redistribution properties of cash transfers highlights the importance of spending levels for inequality outcomes. It also suggests considerable scope for strengthening existing targeting mechanisms (e.g. by preventing low-income job seekers from going without support). While receipt of incapacity benefits tended to rise, unemployment benefit receipt fell in a majority of countries.