MINIMUM INCOME AND INCLUSION POLICY Challenges of a precarious inclusion model Brussels 6 April 2016

After the crisis – focus on –Economic growth –Job creation Is this sufficient  situation before the crisis Spain - After the crisis

Spain 2000 to 2007: growth above European average, both in terms of GDP and job creation However, between 2000 and 2007: –Poverty rate has increased –51% of Spanish households are represented in social exclusion indicators –50% of households are represented in material deprivation indicators –44% of households have experienced poverty –Inequalities have increased –Social spending decreased below the EU average –More than 3 million out of the 7 million of jobs created were precarious jobs –labour income has reduced while capital income has increased Model of precarious inclusion

2 out of 3 excluded people were already excluded before the crisis Simultaneous increase of material deprivation and people earning minimum wage by 50% The current crisis is resulting from a model

Job creation –Exclusion from the labour market (the unemployed) –Availability of sufficient and decent jobs –In-work poverty (Working poor) Minimum income –Crisis and recovery do not impact all in the same way –Over households are left without an income –Regional differences exist Family policy –No universal child benefits or family protection in Spain Main challenges

Integrated proposal for poverty reduction Caritas Spain recommends 1.Implement a minimum income scheme 2.Complementary income for working poor, level calculated on basis of family unit composition and income 3.Tax credits and child allowances for families with dependent children below 25 Caritas Europa recommends 1.Implement minimum income schemes 2.Adjust minimum wage that allows an individual’s household to cover basic needs and to live in dignity 3.Introduce a child guarantee to ensure access to services

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