Combating poverty in the Netherlands Martijn Schut Stimulansz
Poverty in the Netherlands 11% living below the risk-of-poverty threshold = 60% of median income (Eurostat) One-parent households, non-western immigrants and people on benefits have higher risk 6,76% of all children (0-18) live in social assistance households 1 on 8 low income households has substantial job (+24h) 11% living below the risk-of-poverty threshold = 60% of median income (Eurostat) One-parent households, non-western immigrants and people on benefits have higher risk 6,76% of all children (0-18) live in social assistance households 1 on 8 low income households has substantial job (+24h)
National and local responsibilities National government (general benefit levels): 1.National insurance 2.Employee insurance 3.Social assistance 4.Specific benefits and compensations for housing, health care, children, work, etc. Local authorities: Administering social assistance Tailormade benefits Directing role National government (general benefit levels): 1.National insurance 2.Employee insurance 3.Social assistance 4.Specific benefits and compensations for housing, health care, children, work, etc. Local authorities: Administering social assistance Tailormade benefits Directing role
Administering social assistance Work and Social Assistance Act: Local authorities receive 2 budgets 1.Benefit budget Married couples receive 100% of net minimum wage (€ 1.143) Single parents 70% Single people 50% 2.Re-integration budget Work and Social Assistance Act: Local authorities receive 2 budgets 1.Benefit budget Married couples receive 100% of net minimum wage (€ 1.143) Single parents 70% Single people 50% 2.Re-integration budget
Local income support (in addition to basic income) Specific individual circumstances Necessary Costs are made No other allowance of benefit Mean-tested No exclusion by source of income Generic income support for certain categories: 1.Longterm sick and disabled 2.Elderly people 3.Families with children Specific individual circumstances Necessary Costs are made No other allowance of benefit Mean-tested No exclusion by source of income Generic income support for certain categories: 1.Longterm sick and disabled 2.Elderly people 3.Families with children
Local schemes 1.Tailor-made social assistance benefits (bijzondere bijstand) 2.Discount cards to promote participation in socio-cultural and sports activities 3.Benefits for long term poor (langdurigheidstoeslag) 4.Collective additional health insurance for social assistance receivers 5.Exemption from local rates 6.Debt relief assistance 1.Tailor-made social assistance benefits (bijzondere bijstand) 2.Discount cards to promote participation in socio-cultural and sports activities 3.Benefits for long term poor (langdurigheidstoeslag) 4.Collective additional health insurance for social assistance receivers 5.Exemption from local rates 6.Debt relief assistance
Discount cards For the poor And sometimes for higher incomes For the poor And sometimes for higher incomes
Debt relief assistance and making ends meet Debt Repayment Act (Wsnp) Relief of local debts if debtor finds or accepts a job Bonus if debtor co-operates Budget counselling Debt Repayment Act (Wsnp) Relief of local debts if debtor finds or accepts a job Bonus if debtor co-operates Budget counselling
Under-utilisation of income support Lack of knowledge Assuming you do not qualify Complexity of procedures vs. profit Shame and proudness Working poor don’t know they are entitled
Combating under-utilisation (calculate your benefits) Benefit forms brigade Using existing data Simplifying procedures Informing intermediaries Income support through private funds
Conclusions Martijn Schut