Income-related

Income-related describes something that is dependent upon, or directly connected to, a person's or household's income level. This can pertain to eligibility for benefits, the calculation of taxes, the affordability of goods or services, or the distribution of resources. The term often implies a mechanism for fairness or social support, targeting aid or imposing burdens based on financial capacity. It can also relate to financial planning, such as the design of investment strategies, retirement planning, or borrowing practices, as well as eligibility criteria for social programs, or loan repayment schemes. It aims to address financial disparities and promote equitable access.

Income-related meaning with examples

• The government implemented income-related housing assistance to provide affordable housing options for low-income families. Eligibility was determined by a sliding scale, so the lower a family’s income, the greater the subsidy. This approach aimed to prevent homelessness and ensure basic living standards for vulnerable populations. The scheme has demonstrably improved the quality of life for many, as their housing costs are more manageable.
• Tuition fees at the university are income-related, meaning that students from lower-income families are eligible for reduced or waived tuition. This initiative facilitates access to education, allowing students to study regardless of their family's financial situation. The university believes in equality of opportunity, so it provides a progressive system, offering bursaries and grants. Their approach has led to a more diverse student body.
• Many childcare subsidies are income-related, making childcare more accessible and affordable for working parents. The subsidies are designed to alleviate the financial burden of childcare costs and support parents in remaining in the workforce. For parents with low income, the subsidy can greatly reduce costs. The government hopes this helps boost the economy as more parents can participate in it.
• Tax credits, such as the Earned Income Tax Credit (EITC) in the United States, are income-related and provide financial support to low-to-moderate-income working individuals and families. It aims to offset payroll taxes and encourage work. The value of the credit increases with earnings up to a certain point, after which it decreases. Its impact on poverty reduction is well-documented.
• Loan repayment schemes in some jurisdictions are income-related. This means that the amount a borrower repays each month is based on their income level. This approach can prevent the risk of defaulting on loans if the borrower's financial circumstances worsen. It's intended to provide financial protection to those who may struggle to meet fixed repayments due to fluctuating or reduced earnings.