Welfare programs help those with low or no income, covering basics like rent and food.

So, they come with income limits.

Earn too much?

You’re out.

That’s because most programs are means-tested: They check how much you money you make.

If your income goes up, they think you need less help.

So your benefits shrink—or vanish.

This creates a welfare trap.

Imagine: You get a pay raise…

…but lose rent help, food aid, or childcare support.

In the end, you’re working more—but not getting ahead.

Sometimes, you're even worse off.

That’s the problem.

u7114744992_a_silhouette_dejected_on_his_knees_as_a_giant_off_c2054989-0054-438f-9f92-440f81516f16_3.png

How It Happens:

When benefits cut off too fast once you start earning...

...and your income isn’t enough to cover expenses.

You struggle to pay bills, and realize your income isn't enough.

So, working feels like a burden, than a boon.

u7114744992_A_group_of_diverse_smiling_silhouettes_holding_ha_70d22879-ade0-41b1-894a-239e459b4ead_3.png

What’s the fix?

Economists have suggested solutions:

Tapered Benefits – Instead of cutting benefits off immediately, reduce them gradually as income rises.
Universal Basic Income (UBI) – Give everyone a basic cash amount, no matter what. No penalty for earning more!
Work Incentives – Offer extra rewards for people transitioning from welfare to work.

Fun Fact: Even millionaires get government help! Many countries subsidize things like home loans, farming, and even oil companies—forms of "welfare" that don’t always go to those in need.