The non-take-up of means-tested income supplementation schemes

Income supplementation benefits aim to provide additional financial support to low-income municipal residents for expenses insufficiently covered by their primary income sources. In the Netherlands, the non-take-up of these benefits is particularly high and relatively underexamined. This study investigates factors influencing the decision not to claim income supplementation benefits, by surveying approximately 3500 low-income residents of a Dutch municipality. Using hypothetical scenarios where all participants are considered potentially eligible for certain local welfare benefits, the research explores the impact of shared scheme characteristics, trust in government, and the fear of reclaims and fines. The findings reveal that stringent requirements, such as extensive proof of financial need and restrictions on spending autonomy, are likely barriers to participation. Additionally, a lack of trust in the government and concerns about potential reclaims or penalties further discourage participation. These insights underscore the need for policies to improve the accessibility of income supplementation schemes.