Debate: Adequate minimum income ensuring active inclusion
Date: TUESDAY, 14 MARCH 2023
Speaker: Nicolas Schmit
Language: EN

Against the background of the multiple crises that we are facing, we need to work together to ensure social cohesion. We are on the same side on the fight against poverty, social exclusion and inequality. More than one in five people – and this has already been said – in the EU are at risk of poverty or social exclusion. The situation might worsen in view of the soaring living costs and economic uncertainty, so we must ensure our safety nets are up to the task. Guaranteeing that every person who lacks sufficient resources can have access to adequate income support and services that foster inclusion is essential: essential to ensure a decent standard of living; essential for human dignity; essential to build fair and resilient economies and societies; and essential to promote active participation in society. Inspired by principle 14 of the European Pillar of Social Rights on minimum income, the Commission proposed the Council recommendation that has now been approved by the Council. This recommendation aims to improve the adequacy of income support while ensuring sufficient incentives for those who are able to work to enter or re-enter the labour market. The recommendation is part of a comprehensive package to tackle poverty and social exclusion to achieve upward social and economic convergence and to promote solidarity, as put forward in the European Pillar of Social Rights and its Action Plan. For recipients who can work, minimum income should act as a stepping stone towards employment or complement the income from work in view of specific personal or family circumstances. Member States are now called to achieve the proposed adequacy levels by 2030. They are expected to regularly review and adjust the level of minimum income. The recommendation also focuses on making access to the labour market more inclusive. This can be done through improving skills, safeguarding work incentives or creating work opportunities in the social economy. It also calls for supporting those who cannot immediately work through social inclusion plans. Lastly, it calls for improving effective access to support services. At the Commission, we continue to work together with Member States via the Social Protection Committee and the network of the national authorities responsible for minimum income. We will also support and complement Member States’ action via the European Semester. The European Social Fund Plus will be a key driver to implement the recommendation. It will provide large-scale financial support for disadvantaged groups and marginalised communities. It will make Member States more resilient while promoting socially fair green and digital transitions. And the Recovery and Resilience Facility is also promoting reforms of minimum income systems in line with the principles set out in the recommendation. The stocktaking of the recommendation will take place in 2030. This time horizon is aligned with the 2030 headline poverty reduction target as well as with the targets on employment and skills. Member States have welcomed these targets and presented their own national targets. Regarding the poverty reduction target, the sum of the national targets exceeds the EU target. That is good news, but it is now time to walk the talk. The European Semester, including the Joint Employment Report, will yearly monitor the progress on the headline targets and on the national targets. Every three years, the Commission and the Social Protection Committee will also prepare a joint report on the progress in implementing the recommendations. Let me now address the specific issue of non-take-up that you have raised. This is a common challenge for all the Member States. On average, around 30-50% of the eligible population do not seek the minimum income support they would be entitled to. The recommendation invites Member States to facilitate the full take-up of minimum income by reducing administrative burden, simplifying the application procedures and ensuring step-by-step guidance, by ensuring access to user-friendly and transparent information, by combating stigmatisation and intensifying reaching out, and finally by regularly assessing the reasons behind the low take-up. The recommendation also calls upon Member States to establish transparent and non-discriminatory eligibility criteria that would facilitate access to minimum income. This can help increase coverage and reach some groups which, despite their need, are not covered in some Member States. I am thinking of young adults, non-nationals or the homeless. Finally, let me underline that the successful implementation of the recommendation requires broad ownership across all stakeholders, including social partners. The European social partners were consulted on the content of this proposal and the Commission will promote social partners’ involvement using the existing fora of the European Social Dialogue. The Commission also urges Member States to engage in a policy dialogue with civil society organisations, people experiencing poverty, social partners and other economic and social actors in implementing and monitoring the recommendation, including to deliver on its active inclusion approach. And finally, your Parliament can be an important actor also in relation to the implementation of this recommendation. We remain, of course, ready also to facilitate sharing good practices between Member States in order precisely to implement the recommendations.