The Georgia Center for Opportunity highlights how outdated welfare rules can discourage work and trap families in poverty. These “benefits cliffs” occur when a modest raise or promotion causes workers to lose public assistance worth more than their additional earnings.

The consequences can be significant. One example shows how a working mother earning $12.50 an hour could lose $15,000 in combined wages and benefits after receiving a $1.25 raise. These cliffs discourage career advancement, make hiring more difficult and keep families dependent on government assistance.

The organization recommends gradually phasing out benefits, coordinating eligibility requirements across programs and giving families more time to transition toward financial independence. It also offers a benefits cliffs calculator that helps policymakers model the impact of reforms across multiple states. The goal is straightforward: Make sure work always pays.

Read More: Fixing Benefits Cliffs and Poverty

The Georgia Center for Opportunity highlights how outdated welfare rules can discourage work and trap families in poverty. These “benefits cliffs” occur when a modest raise or promotion causes workers to lose public assistance worth more than their additional earnings.

The consequences can be significant. One example shows how a working mother earning $12.50 an hour could lose $15,000 in combined wages and benefits after receiving a $1.25 raise. These cliffs discourage career advancement, make hiring more difficult and keep families dependent on government assistance.

The organization recommends gradually phasing out benefits, coordinating eligibility requirements across programs and giving families more time to transition toward financial independence. It also offers a benefits cliffs calculator that helps policymakers model the impact of reforms across multiple states. The goal is straightforward: Make sure work always pays.

Read More: Fixing Benefits Cliffs and Poverty