Ensuring an adequate minimum income to support a life in dignity

Since 2009, the number of people living in poverty and social exclusion has increased by 10 million in the EU, amounting now to over 124 million, or one in four people. This will not change if the focus stays on economic growth without ensuring it is sustainable as well as inclusive. Against this background, the Ministers for Employment and Social Affairs will meet at the informal EPSCO in Athens on April 29-30, to discuss among others "Economic recovery and social policies: the role of minimum income schemes". In view of these discussions, Social Platform is calling on the ministers to put in place accessible adequate minimum income schemes as the basis for high level social protection across the life span and as economic stabilisers.

The right to an adequate minimum income should be recognised as a fundamental right and should enable people to live a life in dignity, support their full participation in society and ensure their independence across the life cycle. To achieve a level playing field across Europe, an EU framework directive on adequate minimum income schemes should be adopted that establishes common principles, definitions of adequacy, and methods.

Contrary to what is often thought, well-designed, adequate and widely available income support systems do not prevent or discourage a return to the labour market. People receiving unemployment benefits have even greater chances to take-up a job than non-recipients. Moreover, it is crucial to guarantee adequate income also for people in vulnerable situations for whom a return to work is not possible or no longer an option.

Ensuring adequate minimum income protection as a tool to fight poverty is also economically sound. Evidence shows that member states with good social welfare policies are among the most competitive and prosperous. Adequate schemes represent a huge return on investment while the cost of non-investment has enormous immediate impacts for the individuals concerned and long term costs for society.