Housing Assistance Payment: Potential impacts on financial incentives to work
Citation:
Barra Roantree, Mark Regan, Tim Callan, Michael Savage, John R Walsh, Housing Assistance Payment: Potential impacts on financial incentives to work, ESRI Working Paper, 610, The Economic and Social Research Institute, January, 2019, 1 - 31Download Item:
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Abstract:
Since March 2017, a new income-related housing support for those with a long-term housing need called Housing
Assistance Payment (HAP) has been available throughout the state. This paper examines the potential impact on financial work
incentives of transferring long-run Rent Supplement recipients onto HAP with tenants’ rental contributions assessed through a
national Differential Rents scheme, initially proposed by the Housing Agency but yet to be implemented. While such a system
would strengthen the financial incentive for most long-term Rent Supplement claimants to be in full-time paid work, a small
minority would continue to face quite weak incentives. This is driven by the receipt of multiple means-tested benefits – in
particular, jobseekers allowance and one-parent family payment – which results in some low-income individuals facing very
high effective marginal tax rates from relatively low levels of earnings.
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Author: Roantree, Barra
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