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Fighting poverty (?) Social Protection in AUSTRIA

Fighting poverty (?) Social Protection in AUSTRIA. EU-Grundtvig Project 19-22 Oct 2010 Caritas-MigrantInnenhilfe OÖ Mag.(FH) Mag. Brigitte Egartner +43 (0)732 / 7610-2368 brigitte.egartner@caritas-linz.at. Overview. Facts & Figures Structure of Social Protection Schemes Universal schemes

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Fighting poverty (?) Social Protection in AUSTRIA

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  1. Fighting poverty (?)Social Protection in AUSTRIA EU-Grundtvig Project 19-22 Oct 2010 Caritas-MigrantInnenhilfe OÖ Mag.(FH) Mag. Brigitte Egartner +43 (0)732 / 7610-2368 brigitte.egartner@caritas-linz.at

  2. Overview • Facts & Figures • Structure of Social Protection Schemes • Universal schemes Family allowance Childcare benefit • Means-tested benefits • Social Assistance • Means-tested Guaranteed Minimum Income

  3. Facts & Figures • The percentage of population at risk of poverty shrinks from 43 % before to 12,4 % after all social transfers and pensions. • 1 Mio people at poverty-risk (< 951 Euros/mth), 500.000 (6%) in deprivation • 250.000 children, 90.000 in deprivation => every 4th at risk of poverty is under 20 => every 3rd child at risk of poverty has a migrational background • Vulnerable groups: • Children (especially between 3 and 5 yrs) • Families with 3 or more children • Single parents • Migrants

  4. Structure of Social Protection Schemes (1) => Institutionally and legally seperated two-tier system

  5. Structure of Social Protection Schemes (2)

  6. Universal schemes • In general high percentage of cash benefits, but in terms of anti-poverty-measures the following public services should also be taken into account: • education system (cost-free but still very selective; visious circle) • youth welfare system (preventive and interventive measures) • child-care facilities (obligatory but cost-free kindergarten year) • high percentage of universal transfers (16% of total cash benefits), but only 3% of all cash-benefits are means-tested => lack of transfers for special groups at risk • Universal family transfers (family allowance, childcare benefit)

  7. Family allowance • < 3 yrs: 163,80 Euros • 3-10 yrs: 171,10 Euros • 10-19 yrs: 189,30 Euros • > 19 yrs: 211,10 Euros • Additional payments for 2nd, 3rd and 4th/5th/6th…child • Double pays 4 times/years

  8. Childcare benefit • Until 2002 social insurance based entitelment • Since then universal transfer with elements of means-test because restricts access for higher income parents (> 16.200 Euros/year) => also some element of general means-test! • Different options: shorter periods of receipt lead to a higher monthly benefit. New income-based model introduced in 2010 (1 yr, 80% of last income) • Top-up payments for low-income families (181 Euros/mth)

  9. Means-tested benefits • Equalisation supplements in the pension system (top up payment for all pensioners at the equalisation supplement reference rate, currently 744 / 1.116 Euros), 10 % of all pensioners • Income-tested unemployment assistance (Notstandshilfe) after 6 or 12 months of unemployment benefit depending of the family income • Grants to pupils and students of low income families • Social assistance

  10. Social assistance (1) • Main instrument to support people in need • Principle of subisidarity: support only in cases where… • he or she doesn‘t receive enough payments out of insurcances (=> top-up payments!), • has no claims on third parties (=> ex-spouses) and • cannot be assisted through family ties (=> recourse liability!) • Conditionality: • make use of his or her means and abilities • willing to work => no guaranted minimum income for children (dependent on how their parents‘ willingness to work) • Principle of individuality

  11. Social assistance (2) • Federal structure of Austria => 9 different regulations since the 1970s, frequent amendments • Differing rates and various additional payments (clothing, heating, rent,…) • Current rates for Upper Austria (full rates or top-up payments): • Single assisted person: 577,50 Euros • Main assisted person: 521,70 Euros • Co-assisted person without family allowance: 340,30 Euro • Co-assisted person with family allowance: 162 Euros => Rates do not reach poverty-risk treshold as defined by EU-SILC!

  12. Means-tested Guaranteed Minimum Income • For 2011 transformation towards a MGMI planned, but draft law for Upper Austria still missing. Basic agreement on national level contains several major changes: • Guaranteed national minimum income of 744 / 1.116 Euros will replace the currently nine rates of the provinces (=> harmonisation of regulations, avoiding poverty and exclusion) • Job centers will serve as entry point for social assistance recipients categorised as fit for work (=> fostering employment) • Recourse liability limited (=> reducing stigmatisation and increasing take-up rate) => No basic income but national income provision that still imposes certain conditionality on claimants

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