Effectiveness of Minimum Income Schemes in access to employment Lessons for Spain Jonathan Bradshaw Madrid 6 October 2016

Not easy to learn lessons from abroad Work conditionality has always been an important aspect of UK social assistance. Arguably strengthened recently – out of work lone parents, disabled people In work - spouses, hours supplied Labour demand rather than supply likely to be the driver of (un)employment rates in Spain. ?Employment costs (pensions) for employers

Work conditionality High work conditionality is oppression in the absence of jobs. Criticism of sanctions regime in the UK Food banks Non claiming “I, Daniel Blake” – Ken Loach film winner of the Palme d’Or Suicides

Main difference UK Spain No in-work family benefits in Spain They Enhance low wages Increase work incentives Enable out of work social assistance to be more generous Reduce in-work poverty ?Increase fertility

Fertility rate 2012 and % GDP spent on family benefits and services

Couple plus two children social assistance versus one earner on half average earnings OECD Tax/ben 2014 National currencies.

Couple plus two children social assistance versus one earner on half average earnings OECD Tax/ben 2014 % average wage

Net income

Notional replacement rate

Replacement rate less housing benefit

Lone parent plus two children social assistance versus one earner on half average earnings OECD Tax/ben 2014 National currencies.

Balance Between employers and the state In the UK National Living Wage and cuts to family benefits shifting it to employment In Spain state not helping families with children Thus social assistance for families with children very low