The minimum agreed upon Consensual budget standards for the Netherlands Stella Hoff

The Netherlands Institute for Social Research Assessing the minimum standard Issues to be addressed: a)What goods and services are necessary? b)How much of these goods and services is needed? c)How much do the items cost?

The Netherlands Institute for Social Research ‘The minimum agreed upon’  3 mixed focus groups, representing  5 household types, including single persons over 65  both sexes  3 income levels  1 homogeneous group,  on social assistance benefit or with earned income up to 105% of statutory minimum income  younger than 65  senior secondary level of education or less  3 sessions per focus group

The Netherlands Institute for Social Research The contents of the 3 sessions (1) Session 1: the concept of poverty -> a generally accepted definition lifestyle and basket of essential goods and services for first case: “35-year-old single man” Session 2: lifestyle and basket of essential goods and services for second case: “75-year-old single man”; “single parent with 2 children”; or “couple without children” lifestyle and basket of essential goods and services for third case: “couple with 3 children”

The Netherlands Institute for Social Research The contents of the 3 sessions (2) By the researchers: allocation of prices to baskets of goods and services calculation of budgets on the basis of the allocated prices, amounts and life spans Session 3:  adjustment of the compositions, prices and life spans of the baskets of goods and services  minister’s dilemma

The Netherlands Institute for Social Research Poverty is when you never have got enough money to last until the end of the month, when the available money is already the minimum and it’s being spent only on the most essential basics: food, water, gas, electricity, a roof over your head.... when you can get to the end of the month, but it’s difficult every time and there’s nothing left for extras.... a restriction on the basic needs of life, it means having to deprive yourself of personal development, and being dependent, so that you feel less valued.... when you can’t meet the basic needs of life, including things you don’t need every month, such as a washing machine or clothes.

The Netherlands Institute for Social Research The case of the 75-year-old single man Total monthly budgetEuro’s Housing, after deduction of housing allowance338 Insurances and savings145 Food160 Personal care21 Clothing for adults14 Furniture, domestic appliances, kitchen utensils26 Cable, TV and computer28 Holidays and going out73 Leisure7 Total812

The Netherlands Institute for Social Research Comparison with the 35-year-old single man Total monthly budget, in euro’sMan aged 75 Man aged 35 Housing, after deduction of housing allowance Insurances and savings Food Personal care2125 Clothing for adults1424 Furniture, domestic appliances, kitchen utensils2624 Cable, TV and computer2863 Holidays and going out73117 Leisure715 Total812874

The Netherlands Institute for Social Research Minimum income for older single person Monthly minimum income, including all tax credits and holiday allowance Euro’s State pension979 Care allowance46 Partial compensation for extraordinary health expenditure12 Total1037 Monthly budget deemed necessary by focus group812 Deviation225

The Netherlands Institute for Social Research Pros and cons of the method of CBS Disadvantages: very labour intensive mixed or homogeneous groups? sensitivity for opinions about life span and prices of the items group processes Advantages: insight into the opinion of average citizens regarding poverty and the minimum standard of living