What is a Benefits Cliff?

The big challenge is that no one knows where the cliff begins, or when it will end, because it is individualized for each person, and based on a variety of factors.

For the people actually facing a cliff, they are scared of losing their benefits and being worse off, and since it’s not clear when and why they might lose them, they are forced to make decisions that hold them back.

And for experts and people working in the system, even they can’t fully see how benefits and income work together. From case workers to government agencies, to think tanks and policy makers, each expert has a deep, but silo’d view of the problem. And deep knowledge is needed, because the benefits system itself is a complicated maze of different thresholds, limitations and unclear rules, varying state by state, county by county, and city by city.

Working people deserve a full picture of their financial landscape, and for many people receiving benefits this is simply out of reach. Low-income workers are often forced to make conservative decisions for their lives, finances, and families because of the threat and fear of hitting a benefits cliff. This means people receiving benefits are making decisions that include not taking pay raises, not taking on more hours at work, and not advancing in their careers, regardless of whether they’re actually going to hit a cliff or not. The lack of transparency drives fear, which drives decision-making, which holds people back.