Governments seek to protect low-income households from the risk of poverty by regulating minimum wages and setting up support programmes that include both social insurance and social assistance transfers. At their centre are guaranteed minimum income schemes as last-resort income support. While minimum income schemes exist in all EU Member States, they are not always adequate; they do not reach all those in need, nor do they motivate people to return to the labour market. In many EU countries, the poverty risk for people living in (quasi-)jobless households has increased over the past decade. This development reflects the growing use of non-standard employment (such as part-time contracts and platform work) with insufficient social protection, and the broader structural challenges accompanying the green and digital transition. The pandemic laid bare gaps in social protection systems. Russia’s war on Ukraine, combined with inflation rising faster than revenues, have added urgency to the situation. The European pillar of social rights (‘social pillar’) has established the right to adequate minimum income benefits, ensuring a life in dignity for everyone who lacks sufficient resources. While in 2021, over 95.4 million people were at risk of poverty or social exclusion in the EU, the action plan translating the social pillar into concrete measures set the reduction of this number by at least 15 million by 2030 as one of its headline targets. There is consensus that without further effort, this target will not be reached. In response, the European Commission has put forward a proposal for a Council recommendation on adequate minimum income ensuring active inclusion. While the choice of a ‘soft-law’ instrument has met with mixed reactions owing to its potential (in)efficiency, it represents a first step in this direction and complements other EU action. The proposal, to be adopted by the Council, is being discussed by the Council and the European Parliament.
Source : © European Union, 2022 – EP