Benefits, Subsidies, and Taxation

Evidence-based strategies about benefits, subsidies, and taxes, including those related to employment. These strategies include ways to reduce bureaucracy and remove eligibility criteria that punish or burden people.

How to Navigate this Page

Select policy targets and evidence-based strategies that are priorities and achievable within your setting and sector. Align with your mandate, capacity, jurisdictional boundaries, and scope of practice.

Strategies marked with ☔ are important for populations-at-risk.

Entry Point for Action:
Reflects the organization’s or government unit’s sector scope and mandate

Policy Target:
Relates to the initiative’s focus

Evidence-based Strategies:
Concrete actions to guide initiatives’ design, delivery, and evaluation

ENTRY POINT FOR ACTION

Improve Regulation, Oversight, and Funding of Macro-Economic Systems and Policies

Housing market

Government units subsidize income and/or housing (e.g., rental supplements, interest-free housing loans) to ensure long-term housing security.

SAMPLE INDICATORS

Average length of single shelter stay (e.g., for children, youth, and adults)
Percentage of shelter users with more than one shelter stay per year
Occupancy rate in emergency and temporary shelters
Homelessness levels
Costs associated with re-housing a homeless person
Number of households on waiting lists for government subsidized housing
Social housing waiting lists for people experiencing disabilities
Number of people placed in longer-term housing
Availability of affordable home-buying schemes, such as shared ownership programs
Individual’s perception of the ease of application process for affordable homebuying programs, such as shared ownership programs

Employment and labour market

Government units ensure all workers in public and private sectors have access to pension plans, insurance benefits, and leave provisions. Transparency, accessibility, and regular disclosure of public sector compensation packages support private sector workers in their bargaining negotiations

SAMPLE INDICATORS

Ratio of private sector workers who are members of a union to that of the public sector
Level of transparency of public sector compensation packages
Trends of non-wage benefits (e.g., coverage) in the private sector
Inequalities in non-wage benefits between public and private sector workers

ENTRY POINT FOR ACTION

Expand Provision, Regulation, and Funding to Care, Education, and Transportation Services

Childcare and early childhood experiences

Government units have a clear, shared understanding of the critical role that subsidized or free childcare plays in economic development, poverty reduction, and financial wellbeing promotion

SAMPLE INDICATORS

Trends in public expenditure in childcare
Childcare burden, stratified by sex and gender (e.g., food preparation and feeding, and care, training, and instruction of children)
Number/percentage of parents/guardians who started an education or job training program (i.e., pursuit of higher education opportunities)
Trends of household income over time
Female participation in the workforce (especially for families with young children)
Gender wage gap

Government units provide childcare subsidies ☔

SAMPLE INDICATORS

Number/percentage of families who report being able to access and afford safe, high-quality, reliable childcare spaces, stratified by socioeconomic status

Government units provide child tax credit and benefits (e.g., family allowance) ☔

SAMPLE INDICATORS

Perceived financial strain among families with children younger than the age of 6
Employment rates among parents and guardians (e.g., stratified by sex and gender)
Estimated impact of program participation on annual household earnings

Post-secondary education and training

Government units provide subsidies to low-income individuals to obtain diplomas or certificates in post-secondary education and training institutions ☔

SAMPLE INDICATORS

Education attainment levels among low-income people
Number/percentage of low-income people who report feeling encouraged and structurally able to pursue higher education
Number/percentage of youth in foster care attending post-secondary education and training programs

ENTRY POINT FOR ACTION

Prioritize Redistribution-Based & Universal-Type Policies

Concentrations of privilege and inequity

Government unit programs and services reduce entitlements for people and families that already experience privilege (e.g., tax benefits for dual-parent families). Initiatives ensure that the most disadvantaged groups have access to either the same benefits or more and higher benefits than the least disadvantaged groups

SAMPLE INDICATORS

Intergenerational transmission of socioeconomic disadvantage
Intergenerational earnings mobility (e.g., stratified by family income)
Intergenerational mobility of education (e.g., stratified by family income)
Socioeconomic gap between single-parent and two-parent families

‘Targeted’ approaches versus ‘proportionate’ or ‘targeted within universal’ approaches

Government units and organizations use a mixed approach of targeted and universal strategies (proportionate universalism or targeted within universal) for fair distribution of benefits across the socioeconomic gradient, according to population needs ☔

SAMPLE INDICATORS

Number of policies and programs referring to inclusion as part of their mission and/or goals
Proportion of policies and programs outlining plans to address the structural causes of financial strain and poor financial wellbeing
Proportion of policies and programs focused on redressing concentrations of power and resources

Government units and organizations increase benefits through the socioeconomic gradient so that they are proportionate to the level of disadvantage (i.e., proportionate universalism approach) ☔

SAMPLE INDICATORS

Number/percentage of people receiving income from social welfare programs (e.g., stratified by total household income categories)
Poverty levels (e.g., stratified by total household income categories)
Trends in socioeconomic inequalities

Government units and organizations provide additional benefits to people experiencing more disadvantage (i.e., targeted within universal approach) ☔

SAMPLE INDICATORS

Changes in the number/percentage of recipients living below poverty line
Percentage point decreases in poverty for program recipients
Social welfare earnings (e.g., among the most disadvantaged groups)
Share of people receiving more than half of their income from social welfare programs (e.g., stratified by total household income categories)

Progressive taxation

Government units adopt a progressive taxation system to enhance universal and equity-based policies as well as redistribute wealth to support health, economic, and social equity

SAMPLE INDICATORS

Taxes paid by ultra-wealthy people
Trends in government spending, particularly in social protection

ENTRY POINT FOR ACTION

Simplify Access to Benefits & Services

People’s understanding of benefits, programs, and services

Initiatives identify and address information gaps and poor awareness of benefits, programs, and services to ensure eligible groups can access them when needed ☔

SAMPLE INDICATORS

Availability of information about benefits, programs, and services
Perceived levels of difficulty to access information about benefits, programs, and services
Number/percentage of initiatives using different formats and modes (e.g., brochures, TV advertisements, social media) to present information about benefits, programs, and services
Number/percentage of eligible people aware of benefits, programs, and services

Initiatives ensure that information about benefits, programs, and services is readily available in languages tailored to population and context ☔

SAMPLE INDICATORS

Availability of informative material in different languages, appropriate for populations targeted by the benefits, programs, and services
Proportion of staff reporting that their organization uses language services to better assist clients
Inequalities in achieving the outcome of interest by people from linguistically diverse backgrounds
Enrolment levels in benefits, programs, and services

Initiatives consider different levels of literacy and linguistic abilities to improve accessibility of information about social welfare policies and benefits, with particular focus on non-native speakers and people with low education levels ☔

SAMPLE INDICATORS

Availability of information about benefits, programs, and services written in plain language (e.g., grade 8 reading level or lower)
Proportion of initiatives employing visual resources (when appropriate) in information materials

Stigma and discrimination in the access of benefits and services

Initiatives review their programs and communication strategies that have unintentionally classified recipients into two groups: deserving or undeserving of taxpayer-funded cash support ☔

SAMPLE INDICATORS

Assistance-seeking behaviour among all eligible groups (e.g., stratified by age, sex, gender, migration status)
Number/percentage of eligible groups reporting fear of being stigmatized for assistance (e.g., stratified by age, sex, gender, migration status)
Take-up rates of benefits and services according to degree of need
Trends of unmet needs over time
Rate of participation among those eligible to participate

Eligibility criteria for social welfare programs

Initiatives eliminate restrictive or complex eligibility criteria (e.g., the need to meet all criteria to qualify) ☔

SAMPLE INDICATORS

Take-up rates among eligible groups

Initiatives eliminate complex application processes (e.g., requiring extensive documentation) and enrolment procedures. Through interdepartmental coordination, initiatives implement one-stop-shops to integrate social welfare services fully and also provide support for tax-filing to ensure eligibility for federal programs and services ☔

SAMPLE INDICATORS

Number/percentage of eligible people who report needing support to navigate the application process (e.g., in-person assistance)
Availability of one-stop-shop websites to access social services
Number/percentage of eligible people who agree with the statement that the application process (in-person, online, or via telephone) is straightforward and fast
Take-up of social welfare programs relative to need
Number/percentage of eligible people who report receiving assistance for filing their taxes

Government units ensure all departments involved in social welfare provision share a common understanding of application and assessment processes, using the same explicit, clear guidelines and procedures to define eligibility ☔

SAMPLE INICATORS

Applicants’ perceptions of (in)consistent eligibility criteria across government units and sectors
Rates of appeals and reconsideration requests for benefit approval

Government units adapt criteria, protocols, and eligibility criteria for social welfare to (i) acknowledge the reality of diverse family arrangements (e.g., an unemployed person who does not live with their children, but is still responsible to provide food) and (ii) be responsive to demographic changes and social relationships within and across individuals and families ☔

SAMPLE INDICATORS

Number/percentage of people who are not afraid that life changes would compromise their eligibility for the program
Number/percentage of people who feel the transition to other benefits (when needed) is smooth
Level of agreement with the statement that meaningful information about benefits is readily available

Design supportive social welfare

Government units structure social welfare to allow long-term sustainable exit from entrenched poverty or deep and persistent socioeconomic disadvantage ☔

SAMPLE INDICATORS

Number/percentage of social welfare recipients transitioning out of supportive social welfare
Number/percentage of former social welfare recipients reapplying to the benefits
Food insecurity
Number/percentage of social welfare recipients finding sustainable, appropriate, and fairly paid jobs

Initiatives address the underlying root causes of financial strain, supporting individuals and families who otherwise would rely largely on government unit benefits for a long period of time; i.e., the positive effects of social welfare on financial wellbeing go beyond the time people were enrolled in the programs ☔

SAMPLE INDICATORS

Number/percentage of people feeling their financial situation is worsening
Levels of financial stress (e.g., stratified by sex, gender, race/ethnicity, or household income)
Poverty levels

Integration of social welfare programs with other social supports

Government units address structural barriers (e.g., unavailability of affordable or free daycare, sustained job shortages) ☔

SAMPLE INDICATORS

Stress levels among beneficiaries
Food security
Electricity security

Contingencies and penalties for social welfare receipt

Government units utilize evidence-informed requirements for participation in the social protection system. For example, governments rely on updated evidence-based reports assessing how welfare conditionality influences effectiveness and rapport building with recipients ☔

SAMPLE INDICATORS

Number/percentage of initiatives referring to data and statistics as part of the rationale for their scope and requirements
Number/percentage of initiatives that discuss effectiveness relative to welfare conditionality

Government units revise welfare conditions that penalize recipients with deductions from their welfare payments ☔

SAMPLE INDICATORS

Status of social welfare benefits relative to claw backs
Trends in social welfare earnings relative to changes in recipients’ employment and life circumstances

Government units remove welfare requirements that may force recipients to accept seasonal or parttime jobs with unreliable hours and low pay in order to continue to receive benefits ☔

SAMPLE INDICATORS

Number/percentage of social welfare recipients with insecure or precarious employment

Government units address welfare contractual obligations that impose financial and time burdens on recipients (e.g., meeting the minimum job application quotas and attending regular appointments)

SAMPLE INDICATORS

Levels of fear, stress, and tension among social welfare recipients
Average amount of time and cost expended by recipients to meet the requirements
Perceived burden of the program among recipients

Government units reassess the imposition of time limits on benefits and mandatory volunteering requirements ☔

SAMPLE INDICATORS

People’s ability to transition to the workforce (e.g., before and after the removal of restrictions and requirements)

Government units remove austerity-based penalties for noncompliance, which disproportionally affect the most disadvantaged populations (e.g., single parents, people experiencing disabilities, racialized groups). Government units eliminate strict and unrealistic work for welfare requirements that are evidenced to be counterproductive in supporting transitions into paid labour market (e.g., work requirements in rural and remote communities where there are job shortages) ☔

SAMPLE INDICATORS

Number/percentage of benefits revoked for failure to meet social welfare conditions
Poverty levels among beneficiaries’ dependents (e.g., children of unemployed parents/guardians)
Percentage of beneficiaries’ children who experience a drop in poverty rates
Staff perceptions of the effect of the cessation of obligations on recipients (e.g., stratified by program type)

ENTRY POINT FOR ACTION

Budget for Wellbeing

Recalibration of benefits

Initiatives ensure social welfare payments go beyond covering basic subsistence levels and reflect adjustments to reductions in purchasing power of wages and rising local costs of living ☔

SAMPLE INDICATORS

Number/percentage of recipients lifted out of poverty
Median household income of beneficiaries
Beneficiaries’ perceptions of benefits adjusted to a livable wage
Overall wellbeing and financial wellbeing levels among beneficiaries (e.g., before and after recalibration of benefits)
Poverty gaps between beneficiaries and non-beneficiaries (who are financially better off)
Health gaps between beneficiaries and non-beneficiaries (who are financially better off)
Household food insecurity
Effects of increased monetary support on demand for programs

Cash-based safety net

Cash benefits (e.g., income support payments for unemployment or parental leave) replace non-cash benefits (e.g., food stamps or cashless debit cards) to support wellbeing ☔

SAMPLE INDICATORS

Income volatility
Individual sense of financial control
Individual’s perception of ability to pay bills on time
Individual’s perception of the effect/impact of cash benefits
Recipients’ perceptions about their ability to manage their own money, cover their regular and unexpected expenses, and make purchases with choice and dignity

ENTRY POINT FOR ACTION

Strengthen Employment Security (Income and Benefits)

Income Security

Government units and organizations develop strategies to prevent and address the consequences of income volatility associated with economic recessions, declines in stable contractual employment arrangements, increases in unemployment and underemployment rates, and decreases in cash assistance provided through welfare programs ☔

SAMPLE INDICATORS

Number/percentage of existing programs and benefits that expand their target audiences, including population groups with need who were not previously targeted
Availability of new supports and benefits for target groups with high, complex needs
Access to income supports (e.g., among workers in precarious employment and working age people out of the labour force)
Income security (e.g., among workers in precarious employment and working age people out of the labour force)
Self-reported high/low variability of income

Initiatives address people’s lack of access to sufficient and sustained income through education and job training opportunities, increase in cash welfare benefits, removal of minimum requirements for participation in welfare programs, and improved access to reliable, affordable financial services and products, including specialized loans with no or low fees ☔

SAMPLE INDICATORS

Number/percentage of low-income people who enroll in free or low-cost education and training courses
Trends in the highest level of education achieved by adults
Availability of varied reliable, affordable financial services and products (e.g., to low-income people)
Availability of cash assistance
Perceived ability to provide for oneself and one’s family
Perceived ability to cover basic needs and enjoy economic stability (e.g., among low-income individuals and families)
Number/percentage of people who report having money left over after meeting basic needs

ENTRY POINT FOR ACTION

Develop around People’s Everyday Realities

Wrap-around and integrated support

Initiatives develop an individualized plan of care for people who experience complex needs and/or disadvantage, which helps people to navigate the supports, services, and benefits available (e.g.,completing applications and forms and providing referrals) to facilitate access ☔

SAMPLE INDICATORS

Number/percentage of people who report feeling overwhelmed by the application process
Level of self-reported satisfaction with assistance received to apply for programs
Number/percentage of disadvantaged people who report meeting their basic needs
Number/percentage of people who receive benefits from more than one program
Trends in living and health conditions (e.g., among the most disadvantaged groups)

Entry requirements for community services and programs

Initiatives remove rigid program access requirements that can exclude disadvantaged people ☔

SAMPLE INDICATORS

Number/percentage of people feeling not afraid of applying for the programs and services because of potential life changes
Number/percentage of applications relative to need (i.e., level of unmet needs decrease)

Initiatives remove contingencies and conditions that limit enrolment (e.g., providing matched savings, which is by design contingent on initial savings and housing loans for high-engagement participants) ☔

SAMPLE INDICATORS

Ratio of recipients to people who meet program eligibility criteria
Annual recipiency rates
Number/percentage of people who report feeling encouraged to register in the programs and services
Number/percentage of people with multiple, complex needs who have their benefits granted

Initiatives provide support for all people who are interested to sustain or achieve the minimum targets for participation ☔

SAMPLE INDICATORS

Number/percentage of recipients feeling motivated to continue participating in the programs and services
Number/percentage of recipients fulfilling the minimal requirements
Perceived benefits of program

Evaluation and eligibility assessment

Initiatives undertake a simplified assessment process to avoid imposing a burden for engagement upon recipients in terms of time, energy, and costs ☔

SAMPLE INDICATORS

Perceptions of staff about the extensiveness and onerousness of the assessment process
Trends of administrative costs for assessing if recipients are still meeting the administrative requirements and demands
Trends in time associated with periodic assessments of recipients
Number/percentage of applicants and recipients who report that the assessment process is cumbersome or onerous

Initiatives move away from a punitive, retaliatory approach by eliminating or minimizing obligations (e.g., high – and sometimes unrealistic – job search expectations and compulsory work) and coercions and sanctions for noncompliance ☔

SAMPLE INDICATORS

Levels of stress related to the assessment process among recipients
Compliance levels

Information about services and programs

Initiatives provide accurate, safe, unbiased, and trusted information that can address people’s fears of repercussions related to applying for and receiving benefits and supports ☔

SAMPLE INDICATORS

Number/percentage of pregnant women reporting not being afraid of unsupportive workplace when considering applying for parental leave
Number/percentage of applications for parental leave (e.g., stratified by occupational categories)
Approval rate of applications for parental leave (e.g., stratified by occupational categories)
Number/percentage of parents/guardians who report feeling less afraid of applying for child support due to the risk of incarceration associated with noncompliance with payment obligation
Participants report on their fears of negative consequences associated with their enrolment in the program (e.g., among people experiencing disabilities or unemployed people)

Back-to-work support services

Initiatives focused on transition to employment adjust or eliminate work contingencies (e.g., increasing benefits amount based on work, decreasing benefits in a stepwise fashion after compensation)

SAMPLE INDICATORS

Beneficiaries’ perceptions of the effect of removing obligations
Individual’s satisfaction with the support they received to find their way into workforce
Rates of temporary suspension of benefits for failure to comply with program requirements
Monetary fluctuations in social assistance payments to an individual while in the program

Initiatives analyze not only the effectiveness of work contingencies, but also their impact on each population group, particularly seeking to reveal what kinds of employment disadvantaged groups are finding when re-entering in the workforce ☔

SAMPLE INDICATORS

Number/percentage of people experiencing disabilities who report not feeling obligated to accept low quality and insecure jobs with reduced benefits for fear of losing social support
Number/percentage of participants who secure sufficient and sustained employment (e.g., stratified by deprivation level)
Number/percentage of staff who believe evaluation of individual labour market prospects are fair and match with people’s work-experience and education
Number/percentage of initiatives with instruments and tools in place to capture people’s feedback on the impact of work contingencies on their trajectories to find well-paid, secure jobs
Ratio of effectiveness of programs and services with more work contingencies to that of programs and services with less work contingencies in terms of helping people reaching their goals