Benefit Cliffs: Eligibility Levels that Penalize Work
Low-income families are often eligible for a variety of public programs. These programs help to provide additional income, help with child care, and help to put food on the table. Unfortunately, many of these public benefit programs end at about the same income level. This creates a "benefit cliff" where families who earn higher wages suddenly lose the important health care, child care, and other assistance that makes working possible.
The National Center for Children in Poverty has created a
benefit simulator
that provides information on public benefit programs in the states and notes how many low-income working families are falling of the “cliff” as their income increases.