When welfare payments like housing credits are completely cut off when the recipient's income goes above a certain threshold, then this could discourage the recipient from finding more work or a better-paying job.

Welfare Payments

Government-provided financial assistance to individuals or families in need to support their basic life necessities.

Housing Credits

Housing credits are tax incentives or financial subsidies provided to developers or homeowners to encourage the development or purchase of affordable housing.

Threshold

The minimum level of stimulus or condition required to activate a process or cause a specific effect.