When welfare payments like housing credits are completely cut off when the recipient's income goes above a certain threshold, then this could discourage the recipient from finding more work or a better-paying job.

Question

Quizplus · Accepted Answer

This situation creates a "welfare cliff," where individuals may avoid increasing their income through work to not lose their benefits, as the loss of benefits can outweigh the financial gain from higher income.

When Welfare Payments Like Housing Credits Are Completely Cut Off