kargl: the austrian minimum income „bedarfsorientierte mindestsicherung“ emin-conference,...

KARGL: The Austrian minimum income „Bedarfsorientierte Mindestsicherung“ EMIN-Conference, Budapest, 18.9.2014 1

The Austrian

means-tested minimum income

„Bedarfsorientierte Mindestsicherung“ (BMS)

Martina Kargl(EAPN AUSTRIA / Caritas Vienna)

EMIN-Conference BUDAPEST

September 2014


means-tested minimum incomes & the Austrian welfare state

1st pillar 2nd pillar

Federal state Laender

Public social insurance system (contributory)

Universal Transfers

(non-contributory)

Needs-tested transfers –

social assistance

(non-contributory)

accident healthunemploy-

mentage

Family benefits, long-term-care benefit, etc.

„Bedarfs-orientierte

Mindestsicher-ung“ (BMS)

Minimum

income

provided

?

x x x

„Ausgleichs-

zulage“

(„compensatory allowance“)

2014: 814 €(14 x year,

single person)

x

2014: 814 €(12 x year,

single person)


Which have been the supportive arguments and, on the other hand,

obstacles for the introduction of MIS in Austria?

What about the political context?


INTRODUCTION?

NOT a new cash benefit, but reform of an already existing one !!!

Sozialhilfe social assistance, since the 1970ies (dating back to 19th centuries „poor

relief“)

Bedarfsorientierte Mindestsicherung since 2010

Some modernisation & improvement, but also deterioration and unsolved problems.

formative elements are still the same!


SUPPORTIVE ARGUMENTS No need to introduce a new cash benefit

– just „reform“

Lobbying by EAPN Austria since the 1990s – minimum income as an important topic in the public debate about poverty

BUT: NGOs were excluded from the negotiations between federal state & Laender (2006-2010), rare information about ongoing negotiations

Federal Government: Acknowledgement of changing social realities (rise of unemployment, atypical

work, working poor, single-parents, …) and the need to reform the social system to avoid poverty by the federal government

Will to introduce costy improvements in the 1st pillar of the austrian welfare state (unemployment-insurance, health-insurance) to reduce the burden on the 2nd pillar – precondition for the Laender to agree to any reform!

Fight against poverty: main topic in the government programme 2006 & strong (personal) support by the minister of social affairs


OBSTACLES

Austria is a federal state, constitution rules: „poor relief“ falls into the legislative competence of the „Laender“

Laender refused a federal law and real harmonisation: „Who pays the piper calls the tune“

Different interests of the Laender(f.e.: Vienna Kärnten)

BMS is based on a treaty between federal state and the laender, not on a law. Treaty only states minimum-standards.

Still 9 different laws, which means:9 different standards concerning the amount of the BMS, rights & duties


Federal Government = Coalition Government of Social-Democrats and Conservative Party Conflicting interests & ideologies reform took years!

Conflicting interests not only between federal state & Laender, but also within the federal government and between relevant ministries


Minimum income

&

the obligation to work


BMS & WORKFARE less-elegibility-principle: There is no statutory minimum wage

in Austria

10% of the employees working full time earn less than 1.199 € net per month (twelfths of annual earnings, 2012)

BMS is NOT a unconditional basic income duty to work!Otherweise: reduction/cancellation of the benefit

BMS serves minimum income not only for people able to work but also for …

… disabled persons = people with serious impairment, usually not able to work

… children (27%, incl. disabled persons)

… people in retirement age (8%)


provisions on reasonable entitlement are those of the unemployment insurance

• Offered job must be based on an employment relationship

• Payment must fit collective agreement

• No occupational protection after 100 days of unemployment / No safeguarding of payment after 120 days

• People who have to care for children up to the ageof 10 years: at least 16/20 hours per week

• Duty to participate in active labour market measures


Exemptions from the duty to use one‘s workforce do exist

• People in retirement age (men: >65 years, women: >60 years)

• People who have to care for children up to the ageof 3 years who can‘t work because there are no child-care-facilities

• People who care for family members who have a proofed need for intense long term care

• People who care for dying /terminally ill family members

• People who started a vocational training / high school before the age of 18


Sanctions Benefits for living requirements:

may be reduced up to 100% Benefits for housing:

must not be reduced! benefits for family members (children, partners):

must not be reduced!

mutual assistance among BMS-authority and the public employment service (AMS), data interfaces People sanctioned by AMS won‘t receive BMS People not willing to cooperate in active labour measures

won‘t receive BMS


Problem: high unemployment predatory competition on the labour-market & disappearance of low-skilled jobs

Many People judged to be „employable“ are not attractive for employers (health problems; low, outdated or missing skills; care responsibilities; indeptedness; old age …)In many cases: No longtime-integration into the labour-market, revolving-door-effekts

German example shows: „zero-tolerance“ workfare policy leads to a growing working-poor-sector and spread in wages, growing social inequality & weak domestic demand

Not the missing will to work is the problem, but the lack of adequate work!


BMS & ADEQUACY


Amount of entitlement in the BMS is defined by the amout of entitlement in the Ausgleichszulage in the pension system

BUT: arbitrarily set by political system, historically evolved since 1950ies – political poverty lines in Austria are not based on a basket of goods / reference budget !

No political consensus that the BMS should at least be as high as the minimum income within the pension-system (striking argument: otherwise weak incentives for taking up a job)

Ausgleichszulage (pension system):2014: 814 x 14 = 11.396 € / year

BMS: 2014: 814 x 12 = 9.768 € / year


Reference budgets for Austriawww.referencebudgets.eu/budgets/ Assumtion: Rented flat

Periodic expenditures:housing & related expenditures, public transport, phone & internet, household-insurance, school-related costs, child-care-costs (kindergarden etc.)

Irregular expenditures:clothes & shoes, furniture & garden, health-related costs

Household expenditures:Healthy nutrition, cleaning & body care products, child-needs (trips, handicrafting etc)

Other expendituresPocket money for children, budget for social und cultural participation(2013: single person: 61 €/month)

NOT included: costs for … car and car-related expenditures, pets, leisure-time related exenditures (hobbies, going out, holidays), alcohol and cigarettes


2013

Single Person(25-51 years)

Couple(25-51 years)

Single parent

+ 1 child(8 years)

Single parent

+ 2 children

(7+14 years)

Couple+ 1 child(8 years)

Couple + 2 children(7+14 years)

Couple + 3 children

7+9+14 years)

BMS (additional family benefits included)

795 € 1.192 € 1.109 € 1.454 € 1.507 € 1.852 € 2.201 €

Reference budgets 1.301 € 1.940 € 1.901 € 2.657 € 2.567 € 3.146 € 3.594 €

Difference BMS & reference budgets

506 € 748 € 792 € 1.203 € 1.060 € 1.294 € 1.393 €

AustrianEU-SILC Poverty line 2012 (!)

1.090 € 1.635 € 1.417 € 1.962 € 1.962 € 2.507 € 2.834 €

Difference BMS & EU-SILC poverty line

295 € 443 € 308 € 508 € 455 € 655 € 633 €


Most obvious problem in the context of adequacy: inadequate means for housing

General Rule:•75% of the benefit per person: living requirements (2014: 611 €)•25% of the benefit per person: housing (2014: 204 €)•Health insurance for people previously not health insured

some Laender offer additional benefits for housing …but not all of them

Means for housing nontheless often not adequate

Rented flats, Price per m2 in € (+ 20%)

Rent incl. running costs, excl. energy and heating

Ø ÖsterreichBurgen-

landKärnten

Nieder-österreich

Ober-österreich

SalzburgSteier-mark

TirolVor-

arlbergWien

1. Quartal 2014

7,08 4,99 5,95 6,46 6,85 8,83 6,88 7,87 8,16 7,17

Source: www.statistik.at/web_de/statistiken/wohnen_und_gebaeude/wohnungsaufwand/mietwohnungen/023048.html


ELIGIBILITY CRITERIA


Citizenship / residence permit • Austrian citizenship• EU-citizens: requested residence permit:

„Anmeldebescheinigung“ status of worker or proof of sufficient means of living & health insurance

• Third-country nationals: permanent residence permit Not for tourists (less than 3 month stay in Austria)!

Not for poverty-driven migrants!

Same conditions for shelters for the homeless!(at least in Vienna)


SubsidiarityDuty to work

compulsory realisation of assets/ safings NEW: • perpetual „grace-property“: ~ 4.000 €• „grace period“ for dwellings owned before securing in the

land register: 6 months

important reason for non-take up

Claims to maintenance (under family law) have to be realised• Separated, but married couples – partners (not married) in

the same household are treated like spouses. NOT: if unreasonable, f.e.: domestic violence – proof!

• If loss of “self-preservation capacity“ (jur): Parents of adult children and vice versa are obliged to care for the person in need

important reason for non-take up


Who benefits from the BMS?


Recipients of Sozialhilfe (till 2010)

and BMS (since 2010)


(Non)-take-upNOTE: not everyone living below EU-SILC poverty-line is eligible to BMS!

NOTE: figures based on a sample, therefore statistical fluctuation! Percentages

inhabitants EU-SILC 2012 poors BMS-Recipients 2012EU-SILC poors

in % ofinhabitants

BMS recipientsin % of

EU-SILC poors

BMS recipientsin % of

inhabitants

Burgenland 286.143 16.000 3.023 6 (???) 19 1,1

Kärnten 555.751 83.000 4.979 15 6 0,9

NÖ 1.616.161 166.000 18.966 10 11 1,2

OÖ 1.416.387 145.000 14.214 10 10 1,0

Salzburg 530.527 53.000 12.039 10 23 2,3

Steiermark 1.209.466 156.000 19.552 13 13 1,6

Tirol 712.849 92.000 13.465 13 15 1,9

Vorarlberg 371.697 65.000 8.583 17 13 2,3

Wien 1.727.330 426.000 126.520 25 30 7,3

AUSTRIA 8.426.311 1.201.000 221.341 14 18 2,6


BMS-Recipients in Austria 2012


BMS-recipients in Austria 2012


Average duration of BMS-benefit


BMS-recipients according totype of benefit, VIENNA, 2013


BMS-spending 2012: ~ 540 Mio € (66% = Vienna!),

Overall social spending in Austria 2012: 92,7 Billion € (social expenditure share: 30,4% of GDP)

BMS-spending = 0,6% of overall socialspending!

COSTS


not sufficiently determinated laws leaves too much discretionary power to the officials

Not only 9 different laws, but also inconsistent law enforcement by the district-offices due to not sufficiently determinated laws & poorly trained officals diverging standards!

Financing: to a large part responsibility of the municipalities – the poorer the municipality is, the more costs it has to bear outdated financing-structure that incourages unlawful law-enforcement and wrong information

Insufficiant (legal) counselling-centres & information offer, both in quantity & quality difficult for entitled persons to get to know about their rights & to enforce them

Special problems


Following the invitations by politicians and officals for dialog, but also activities on our own behalf

See: www.armutskonferenz.at Mindestsicherung

Carrying out research and publishing it•2008: Survey among 121 social NGOs concerning BMS-

law-enforcement in Austria (showing that there is unlawful & non-uniform law-inforcement)

•2012: comparative study of the 9 new BMS-laws (showing that there are vaste differences & a lot of remaining problems)

2014: „lemon-award“: start of a new series concerning good & bad practice in BMS-law and law-enforce-ment Making problems public! Media-interest!

Activities of EAPN Austriaconcerning BMS


Thank you for your attention!

www.armutskonferenz.at

Contact:

[email protected]

[email protected]

kargl: the austrian minimum income „bedarfsorientierte mindestsicherung“ emin-conference,...

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