“I Work, I Receive Benefits, and I’m Still Broke”: Challenges and Strategies for Jumping Off the Benefits Cliffs Among Low-Income Workers

Background and Purpose: Existing literature identifies the “benefits cliff” as a significant barrier for public welfare recipients when trying to achieve self-sufficiency. This happens when a slight increase in wages results in the loss of eligibility for public benefits, often creating “disincentive deserts” (Richardson & Blizzard, 2022), a mechanism that discourages individuals from increasing their work hours or earning a small income increase that will result in losing benefits. However, low-income individuals consider a broader range of factors beyond immediate financial impacts when making employment decisions. To better understand this complexity, this study examines the experiences of individuals facing the benefits cliff and the financial coping strategies they employ to navigate these hardships.

Methods: Data were collected from low-income workers in a county-sponsored workforce development program. Between 2022 and 2025, a total of 104 participants enrolled in the program and received support from life and career coaches. All participants had received at least one public benefit, including Medicaid, SNAP, childcare assistance, HEAP, and Section 8, and were currently facing the cliff or anticipating it. Semi-structured, in-depth interviews were conducted with 20 voluntary participants. All interviews were audio-recorded and transcribed verbatim. Thematic analysis was conducted using the qualitative research software ATLAS.ti. Transcripts and codes were systematically analyzed to identify emerging themes in participants’ narratives.

Findings: This study identified three themes related to the benefits cliff: experiences, strategies, and desires for self-sufficiency. The first theme, experiences, includes financial challenges such as food insecurity, housing instability, and transportation difficulties, as well as psychological impacts such as frustration, stress, and the fear of encountering the benefits cliff. The second theme, strategies, involves budgeting to prioritize their monthly expenses, seeking community resources, and family support. The third theme, desires for self-sufficiency, demonstrates that despite hardships, cuts to public benefits did not deter them from working harder to advance their career. Instead of being trapped in the welfare system with low income and fear of losing benefits, they showed a strong desire to step out of public assistance and envision their careers as a means of achieving goals and becoming role models for their children.

Conclusion and Implications: The findings highlight the everyday challenges faced by low-income workers and offer a nuanced perspective on their pursuit of self-sufficiency. In particular, by examining the concept of “disincentive deserts,” this study demonstrated that low-income workers’ motivation to work remains strong even in the face of the benefit cliff, reflecting a strong desire to achieve life goals and independence. For social work practitioners and policymakers, these findings suggest that to disrupt the cycle of poverty, supportive programs should provide financial services during periods associated with the benefits cliff and invest in human capital to facilitate upward mobility beyond entry-level employment and promote long-term self-sufficiency. In addition, fostering emotional support is critical to sustaining hope and reducing stress as welfare recipients navigate the challenging process of getting out of poverty.