The Urban Institute published a report of A New Safety Net for Low-Income Families. The report echoes some of the discussions happened in Mayor’s New Tools Symposium on July 21st.
The report presents the current status of low-income families:
- They have not progressed much compared to where they were a decade ago.
- Although four in five of these families work, many don’t bring home enough to cover the everyday costs of living.
- Child poverty rate has increased.
The report recommends that the nation need new policies that make work pay in today’s economy:
Work should pay enough to cover the basic costs of everyday family living. When hard work fails to cover the costs of housing, medical care, and child care, these expenses should be subsidized in ways that also promote greater work effort.
Young children in low-income working families require quality day care, and their parents must be able to combine a job with parenting so their children develop fully.
Parents need access to training to move up the career ladder and access to specialized supports when their underdeveloped or outdated skills, their health problems, or other factors put even the first rung of the ladder out of reach.
Families that work hard should be able to bridge employment gaps through unemployment insurance and accumulated savings.
The report points out that this is a difficult moment to suggest new initiatives requiring additional federal and state expenditures and compelling employers to play a stronger role in supporting low-income families through broader health insurance coverage, retirement savings, and some paid sick leave. Yet, postponing additional investments in low-income working families will cost even more. Further, increasing the number of families on a solid economic footing will strengthen the nation’s competitive advantage in the global economy
The report suggests ways to make these initiatives affordable, such as using phase-in provisions and co-pays, and redirect current spending in tax expenditures for the mortgage interest deduction and employer-provide health insurance.
You can read the full report here: http://www.urban.org/UploadedPDF/411738_new_safety_net.pdf
