Welfare states may also experience the financial burden of supporting individuals who are constantly cycling in and out of low-paid work. Such costs to the state can be related to unemployment benefits and other out of work cash transfers and any in-work cash transfers intended to supplement the income of low-paid workers from low-income households (Thompson, 2015).To reduce the number of working poor, as well as to cut down on public expenditure costs in the long run, governments should look towards policy solutions that improve job security and increase the wages of low-paid-workers (Europa, 2013). According to a working paper on the relationship between age and skills using data from the Survey of Adult Skills (Paccagnella, 2016), a negative relationship between literacy and age exists. Literacy declines with age, especially after age 45. In Denmark, Ireland, Norway and Sweden, literacy proficiency falls substantially with age. Adults aged 55 to 64 have 18% to 23% lower literacy proficiency than 25-34 year-olds, even after various socio-economic and demographic factors are taken into account.