even though such estimates need to be taken with caution given difficulties in estimating the income equivalent of inkind benefits it is clear that public services benefit poorer households the most however efficiency gains could compensate for lower spending better management and greater regional flexibility in public sector wages could contribute significantly reaping potential efficiency gains will be essential to preserve at the same time the quality of public services and fiscal sustainability the incomeincreasing effect for reduced rent tenants is in the bottom quintile and in the top quintile