poverty trapnoun [ S ]
uk/ˈpɒv.ə.ti ˌtræp/us/ˈpɑː.vɚ.t̬i ˌtræp/UKa situation in which someone would have even less money, or not much more money, if they were employed because financial help from the government would be reduced or not available:
He's caught in the poverty trap and will only be five pounds a week better off if he accepts the job.