Additional Financial Help The case of Ghent (Belgium) Reference budgets and Additional Financial Help The case of Ghent (Belgium) Thomas Maeseele Marijke Heirman Policy support - PCSW Ghent

COntext 31/12/18

Who are we? Where do we come from? 250,000 Who are we? Where do we come from? Genk

Map - Ghent Ghent: Inhabitants: +/- 250.000 Second city of Flanders University city Medieval centre Nineteenth century circle Suburbs for middle-class +/- 15,9% at risk of poverty +/- 4.300 households on social assistance 31/12/18

Ghent

PCSW? PCSW = Public Centre for Social Welfare Autonomous local government PCSW double mandate: Guarantee the right to social welfare Broad mandate To effectuate the right to social integration: By providing a ‘minimum income’, i.c. social assistance By employment By an individualised trajectory towards social integration Reality: often a focus on poverty 31/12/18

PCSW – social assistance Couple (every person): 607,01 euro Single person: 910,52 euro Single or couple with children: 1.254,82 euro 31/12/18

PCSW Ghent

Towards a new policy: motivation 31/12/18

Reference budgets and the PCSW Consensus among social workers that the lowest social benefits are not sufficient Critique on fixed benefits in the PCSW Research on reference budgets show the complexity of deciding when someone reaches a minimum standard of living (versus fixed benefits) 31/12/18

Reference budgets and additional financial aid PCSW’s have the discretion to decide to provide additional financial help 8 years of negotiations and finding consensus within the administration and political consensus PCSW Ghent => basis for the calculation in the reference budgets 31/12/18

Discussions when implementing reference budgets Reference budgets (RB) as goal BUT Often very high in comparison to other social benefits (e.g. for disability, lowest pensions,…) a lot of means from the local government (vs. responsibility federal government?) Budgettary concerns RB in some cases (e.g. high rent) higher than the minimum income wage in full employment Welfare versus activation (tensions) Practical concern => how to find potential beneficiaries 31/12/18

Additional financial aid 31/12/18

The Ghent system of additional financial aid Analysis of the situation: What is the family situation? Do they have public, social of private housing and what is the rent they pay? What means of income do they have (means tested) comparison to the reference budget comparison to the minimum wage (tension) 31/12/18

Accessibility Acces for the lowest incomes: Minimum social benefit Inactive incomes: pension, benefits for people with disabilities Policy proposal (elections): all people with an income below the scales 31/12/18

Some examples example 1 Single, 25 years old Social assistance – 892,7 euro Rent = 450 euro RB = 985,9 euro MW (tension) = 1008,53 euro Additional aid => 93,2 euro

Some examples example 1 Couple, 3 children (1 secondary school; 2 in primary school) Social assistance + child benefit: 1887,10 Rent: 770 euro RB: 2832,32 euro MW: 1997,4 euro Additional aid = 110,3 euro 31/12/18

Some examples example 3 Single, 72 years old Social assistance = 910,52 euro Rent = 256,99 euro RB = 909,1 euro MW = 1040,76 euro Additional aid = 0 euro Moves to more qualitative housing: 400 euro rent RB = 1.052,11 euro Additional aid = 131,66 euro 31/12/18

The Ghent system Used as benchmark Provide information about clients’ situation Analysis of the situation of the most vulnerable Policy development Data used to support social workers

Cost Budget 2015: 1.052.127 euro Budget 2018: 1.988.635 euro Rise in means provided by the local government to guarantee its residents of a decent income. 31/12/18

Other uses of RB + Use of budget calculator to grant access to the lowest income child care + Reference budgets also used to calculate the living allowance in cases of debt 31/12/18

Discussion? A higher national minimum wage which corresponds to the reference budgets Responsibility of local government vs. responsibility of other levels of government Questions about how additional financial aids helps to activate people