To what extent do existing institutions and policies ensure high-quality services and basic income support?
Existing essential public services and basic income support are fully aligned with the goal of satisfying basic human needs.
10
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9
Denmark
The Danish welfare state is comprehensive and offers support through income and in-kind transfers such as housing and healthcare, providing what can be called a dignified human life. There are extensive programs in place that ensure every citizen attains an acceptable material living standard. The share of the population falling below the poverty line is small, and income inequality rates are relatively low in international comparison. According to Statistics Denmark, about 3.7% of the population lives under conditions that qualify as relative poverty. Relative poverty is defined as having a net income below 50% of the median income (Statistics Denmark 2023).
Municipalities and other public institutions provide assistance to elderly citizens in learning how to access municipal and public services through the online system MitID, the portal for contacting the welfare state. Computers are available at all municipal libraries. Students and pensioners receive subsidies for public transportation, resulting in very low rates for monthly passes.
Despite the comprehensive welfare state, some cracks are visible. Denmark has a liberal view of individual autonomy and freedom, meaning the state cannot force individuals to accept housing, for example. Homelessness, particularly among individuals with psychiatric diagnoses, is a problem. VIVE, an independent research institution, estimated in 2015 that 80% of all homeless people in Denmark had a psychiatric diagnosis (VIVE 2015). There is a continuing debate on how best to address this problem.
Municipalities and other public institutions provide assistance to elderly citizens in learning how to access municipal and public services through the online system MitID, the portal for contacting the welfare state. Computers are available at all municipal libraries. Students and pensioners receive subsidies for public transportation, resulting in very low rates for monthly passes.
Despite the comprehensive welfare state, some cracks are visible. Denmark has a liberal view of individual autonomy and freedom, meaning the state cannot force individuals to accept housing, for example. Homelessness, particularly among individuals with psychiatric diagnoses, is a problem. VIVE, an independent research institution, estimated in 2015 that 80% of all homeless people in Denmark had a psychiatric diagnosis (VIVE 2015). There is a continuing debate on how best to address this problem.
Citations:
Statistics Denmark. 2023. “Indkomstulighed.” https://www.dst.dk/da/Statistik/emner/arbejde-og-indkomst/indkomst-og-loen/indkomstulighed
VIVE. 2015. “Hjemløshed kommer sjældent alene.” https://www.vive.dk/da/udgivelser/hjemloeshed-kommer-sjaeldent-alene-5xpqy5v7/
Statistics Denmark. 2023. “Indkomstulighed.” https://www.dst.dk/da/Statistik/emner/arbejde-og-indkomst/indkomst-og-loen/indkomstulighed
VIVE. 2015. “Hjemløshed kommer sjældent alene.” https://www.vive.dk/da/udgivelser/hjemloeshed-kommer-sjaeldent-alene-5xpqy5v7/
Norway
Norway has no official poverty line but operates with a definition of “problematic low income,” defined as an income of less than 60% of the median income over three consecutive years. Income below this level may imply that the affected individual or family will need additional income to access the services, activities, and commodities that most other people have. Individuals and families in the problematic low-income category usually have access to the needs-based social assistance program. Economic support to low-income households is not earmarked for any specific goods; however, a separate means-tested program exists to help poor families with housing costs.
Existing essential public services and basic income support are largely aligned with the goal of satisfying basic human needs.
8
Austria
Existing essential public services and basic income support are largely aligned with the goal of satisfying basic human needs.
Austria ranks in the middle of OECD countries in terms of overall poverty rate, holding the 15th position out of 30 in a recent Eurostat survey. The same source indicates that Austria’s risk of poverty or social exclusion rate is slightly above the average for OECD countries.
The share of the population experiencing severe material or social deprivation, however, has been conspicuously small in Austria. The proportion of the population unable to keep their homes adequately warm has been very low by comparative standards, and the same holds true for digital deprivation.
That said, there has been widespread public concern that this status is likely to be challenged by future developments. More specifically, labor organizations, such as the Chamber of Labor, have demanded the introduction of official minimum salaries, higher unemployment benefits and more investments in social housing.
Social housing may become a problem in the future, as the construction rate in this sector has declined over the past few years. At the same time, housing prices have risen significantly over the last decade, with a notable spike following 2021 and 2022 (Statistik Austria 2023). Part of these developments is due to the abandonment in 2008 of the legal requirement that social housing benefits be dedicated to social housing projects.
Accessibility of banking infrastructure for poorer people, including cash machines in remote areas or small villages, is still adequate in Austria.
Austria ranks in the middle of OECD countries in terms of overall poverty rate, holding the 15th position out of 30 in a recent Eurostat survey. The same source indicates that Austria’s risk of poverty or social exclusion rate is slightly above the average for OECD countries.
The share of the population experiencing severe material or social deprivation, however, has been conspicuously small in Austria. The proportion of the population unable to keep their homes adequately warm has been very low by comparative standards, and the same holds true for digital deprivation.
That said, there has been widespread public concern that this status is likely to be challenged by future developments. More specifically, labor organizations, such as the Chamber of Labor, have demanded the introduction of official minimum salaries, higher unemployment benefits and more investments in social housing.
Social housing may become a problem in the future, as the construction rate in this sector has declined over the past few years. At the same time, housing prices have risen significantly over the last decade, with a notable spike following 2021 and 2022 (Statistik Austria 2023). Part of these developments is due to the abandonment in 2008 of the legal requirement that social housing benefits be dedicated to social housing projects.
Accessibility of banking infrastructure for poorer people, including cash machines in remote areas or small villages, is still adequate in Austria.
Citations:
https://www.arbeiterkammer.at/essenoderheizen
https://ooe.arbeiterkammer.at/interessenvertretung/sozialesundgesundheit/soziales/Armut_in_Oesterreich.html
https://www.derstandard.at/story/3000000173945/bei-sozialwohnungen-droht-ein-engpass
https://www.derstandard.at/story/2000144363530/kanzler-nehammer-will-zweckbindung-der-wohnbaufoerderung-und-leistbares-eigentum
Statistik Austria. 2023. “Wohnen 2022. Zahlen, Daten und Indikatoren der Wohnstatistik.” https://www.statistik.at/fileadmin/user_upload/Wohnen-2022_barrierefrei.pdf
https://www.arbeiterkammer.at/essenoderheizen
https://ooe.arbeiterkammer.at/interessenvertretung/sozialesundgesundheit/soziales/Armut_in_Oesterreich.html
https://www.derstandard.at/story/3000000173945/bei-sozialwohnungen-droht-ein-engpass
https://www.derstandard.at/story/2000144363530/kanzler-nehammer-will-zweckbindung-der-wohnbaufoerderung-und-leistbares-eigentum
Statistik Austria. 2023. “Wohnen 2022. Zahlen, Daten und Indikatoren der Wohnstatistik.” https://www.statistik.at/fileadmin/user_upload/Wohnen-2022_barrierefrei.pdf
Belgium
Belgium features a very high share of public spending in GDP, in good part thanks to a quite high quality of delivery. In terms of public goods and services, it is closer to the Nordic countries than to the United States (which justifies lower provision in the latter country, compared to Belgium). In terms of tax and job policies, it performs much less well. Access to quality housing is not made universally accessible, with tensions that have increased since the repeated migration crises. In addition, there are long waiting lists for social housing and insufficient investment in new construction in this area. However, house prices remain much below the levels in neighboring countries such as the Netherlands and France. De facto, housing accessibility is therefore quite high. In terms of quality, the housing stock is rather old, and energy inefficient.
Finland
The generosity of basic income benefits and the associated quality of services enables the fulfillment of basic human needs fairly well in Finland. Housing benefits and social assistance guarantee access to minimum quality housing, water and sanitation services, as well as energy. Basic social assistance is expected to cover public transportation. Public transportation services are of high quality in Finnish cities. Digital infrastructure is accessible to people with low incomes. Financial services are also provided for those with low incomes and payment problems.
There are inequalities regarding the quality of services available to people with low incomes and those with average or high incomes. While the Finnish service system aims to promote health, well-being, functional capacity, work ability and social protection, and seeks to reduce disparities in health outcomes and well-being, not all citizens can access the services they need. Furthermore, the services available sometimes do not adequately meet the needs of particular individuals, leading to continued significant inequalities in health outcomes and well-being. Deprivation is not only experienced during one’s lifetime, but is also passed down from generation to generation.
There are inequalities regarding the quality of services available to people with low incomes and those with average or high incomes. While the Finnish service system aims to promote health, well-being, functional capacity, work ability and social protection, and seeks to reduce disparities in health outcomes and well-being, not all citizens can access the services they need. Furthermore, the services available sometimes do not adequately meet the needs of particular individuals, leading to continued significant inequalities in health outcomes and well-being. Deprivation is not only experienced during one’s lifetime, but is also passed down from generation to generation.
Slovenia
As in other EU countries, the largest share of social protection expenditure in Slovenia is dedicated to old age, sickness, and healthcare. However, spending on unemployment increased significantly in 2020. Slovenian legislation does not offer a national definition of essential services. Additionally, there is no definition of low-income people regarding access to water, sanitation, and public transport. Specific measures aimed at facilitating low-income individuals’ access to water and sanitation services are also lacking. Cash social assistance and income support do not include provisions to cover water and sanitation costs. About 8.4% of Slovenians reported having difficulty affording regular use of public transport.
The Energy Act ensures that low-income customers have the right to an uninterrupted basic supply of electricity, natural gas, and heat. Necessary electricity is provided as a benefit in kind, while an essential supply of natural gas or district heating means that disconnection is merely postponed during critical supply periods. The energy efficiency program for low-income households was introduced as part of the National Energy Efficiency Plan 2014 – 2020 (adopted in 2015) with the goal of reducing the energy consumption of families experiencing energy poverty. Experts have warned that overly complex administrative procedures for financial support can discourage low-income households from applying for reduced energy bills.
In recent years, households have faced a sharp rise in energy costs, especially in some municipalities. The citizens of the municipality of Velenje received 30% to 50% higher heating bills in 2023. Due to unstable market conditions and the sharp rise in electricity prices, the government has capped the maximum permitted electricity prices. From 1 September 2022 to 31 December 2024, the government limited the maximum electricity prices for household customers, including apartment buildings, through the Regulation on the Electricity Price Determination Decree. In addition, an energy subsidy for the poorest households, a subsidy for families with children, and a subsidy for pensioners were granted in 2022.
Low-income users are entitled to social assistance or income supplements in digital and financial services. They pay a reduced rate for a universal service: €10.72 (the regular price is €14). Low-income users with disabilities are entitled to a 50% discount on connection to a public communications network at a fixed location and a 50% discount on a monthly subscription to publicly accessible telephone services at a fixed location.
The Energy Act ensures that low-income customers have the right to an uninterrupted basic supply of electricity, natural gas, and heat. Necessary electricity is provided as a benefit in kind, while an essential supply of natural gas or district heating means that disconnection is merely postponed during critical supply periods. The energy efficiency program for low-income households was introduced as part of the National Energy Efficiency Plan 2014 – 2020 (adopted in 2015) with the goal of reducing the energy consumption of families experiencing energy poverty. Experts have warned that overly complex administrative procedures for financial support can discourage low-income households from applying for reduced energy bills.
In recent years, households have faced a sharp rise in energy costs, especially in some municipalities. The citizens of the municipality of Velenje received 30% to 50% higher heating bills in 2023. Due to unstable market conditions and the sharp rise in electricity prices, the government has capped the maximum permitted electricity prices. From 1 September 2022 to 31 December 2024, the government limited the maximum electricity prices for household customers, including apartment buildings, through the Regulation on the Electricity Price Determination Decree. In addition, an energy subsidy for the poorest households, a subsidy for families with children, and a subsidy for pensioners were granted in 2022.
Low-income users are entitled to social assistance or income supplements in digital and financial services. They pay a reduced rate for a universal service: €10.72 (the regular price is €14). Low-income users with disabilities are entitled to a 50% discount on connection to a public communications network at a fixed location and a 50% discount on a monthly subscription to publicly accessible telephone services at a fixed location.
Citations:
Baptista, I., and E. Marlier. 2020. Access to Essential Services for People on Low Incomes in Europe: An Analysis of Policies in 35 Countries. Publications office. https://data.europa.eu/doi/10.2767/93987
UMAR. 2023. “Poročilo o razvoju 2023.” https://www.umar.gov.si/fileadmin/user_upload/razvoj_slovenije/2023/slovenski/POR2023-splet.pdf
Baptista, I., and E. Marlier. 2020. Access to Essential Services for People on Low Incomes in Europe: An Analysis of Policies in 35 Countries. Publications office. https://data.europa.eu/doi/10.2767/93987
UMAR. 2023. “Poročilo o razvoju 2023.” https://www.umar.gov.si/fileadmin/user_upload/razvoj_slovenije/2023/slovenski/POR2023-splet.pdf
Sweden
State financial support to individuals and families in need is flexible and not designed to be “one-size-fits-all.” The National Board of Health and Welfare states that the decision calculus for governmental subsidies should account for factors such as medical reasons for an expensive diet and after-school activities for children when considering any increase in the disbursement amount. Social Services should provide support for electricity, work-related travel expenses such as public transportation or car costs for individuals who depend on a car to commute, home insurance, union membership and unemployment insurance, and other life costs such as health and dental care, glasses, home equipment, moving costs, baby equipment, social trips, costs for municipal services, recreation, and funeral costs (Socialstyrelsen, 2019). Essential services such as water, sanitation, energy, public transport, and digital services are covered by the social assistance program, while a means-based housing allowance covers other necessary costs. The municipalities are responsible for managing the financial support (Baptista & Marlier, 2020).
As of 2022, the number of households and individuals who received financial support decreased by 7.6% compared to the preceding year (Stockholm University, 2023). Approximately 161,000 households received financial support at some point during 2022, which represents around 3% of the total number of households. The most common age group among those who received support was 30-39-year-olds. Single men without children are the most common type of household to receive financial support, followed by single women without children. When adjusting for household type, financial support is most common among single women with children; around 13% of all single women with children received financial support. The number of people who receive financial support varies between municipalities (Socialstyrelsen 2023).
Despite the decrease in households and individuals receiving financial support, the risk of poverty in Sweden is higher than the OECD average. According to the quantitative indicators in this report, Sweden is rated above average concerning individuals who are at risk of poverty or social exclusion.
As of 2022, the number of households and individuals who received financial support decreased by 7.6% compared to the preceding year (Stockholm University, 2023). Approximately 161,000 households received financial support at some point during 2022, which represents around 3% of the total number of households. The most common age group among those who received support was 30-39-year-olds. Single men without children are the most common type of household to receive financial support, followed by single women without children. When adjusting for household type, financial support is most common among single women with children; around 13% of all single women with children received financial support. The number of people who receive financial support varies between municipalities (Socialstyrelsen 2023).
Despite the decrease in households and individuals receiving financial support, the risk of poverty in Sweden is higher than the OECD average. According to the quantitative indicators in this report, Sweden is rated above average concerning individuals who are at risk of poverty or social exclusion.
Citations:
Baptista, I., and E. Marlier. 2020. Access to Essential Services for People on Low Incomes in Europe: An Analysis of Policies in 35 Countries. Brussels: European Commission.
Socialstyrelsen. 2017. “Senaste version av SOSFS 2013:1 Socialstyrelsens allmänna råd om ekonomiskt bistånd.” https://www.socialstyrelsen.se/kunskapsstod-och-regler/regler-och-riktlinjer/foreskrifter-och-allmanna-rad/konsoliderade-foreskrifter/20131-om-ekonomiskt-bistand
Socialstyrelsen. 2023. “Statistik om ekonomiskt bistånd 2022.” https://www.socialstyrelsen.se/globalassets/sharepoint-dokument/artikelkatalog/statistik/2023-6-8596.pdf
Stockholm University. 2023. “SPIN Index.” https://www.su.se/social-policy-indicators-database/data?open-collapse-boxes=ccbd-childbenefitdatasetcbd,ccbd-childcaredatasetccd,ccbd-outofworkbenefitsdatasetoutwb,ccbd-housingbenefitsdatasethben#housingbenefitsdatasethben
Baptista, I., and E. Marlier. 2020. Access to Essential Services for People on Low Incomes in Europe: An Analysis of Policies in 35 Countries. Brussels: European Commission.
Socialstyrelsen. 2017. “Senaste version av SOSFS 2013:1 Socialstyrelsens allmänna råd om ekonomiskt bistånd.” https://www.socialstyrelsen.se/kunskapsstod-och-regler/regler-och-riktlinjer/foreskrifter-och-allmanna-rad/konsoliderade-foreskrifter/20131-om-ekonomiskt-bistand
Socialstyrelsen. 2023. “Statistik om ekonomiskt bistånd 2022.” https://www.socialstyrelsen.se/globalassets/sharepoint-dokument/artikelkatalog/statistik/2023-6-8596.pdf
Stockholm University. 2023. “SPIN Index.” https://www.su.se/social-policy-indicators-database/data?open-collapse-boxes=ccbd-childbenefitdatasetcbd,ccbd-childcaredatasetccd,ccbd-outofworkbenefitsdatasetoutwb,ccbd-housingbenefitsdatasethben#housingbenefitsdatasethben
7
Czechia
Although indicators of poverty suggest a relatively favorable position for Czechia, this is largely due to high employment levels and adequate old-age pensions. However, certain sections of the population face significant hardship, with limited assistance from the welfare system. The social benefits system in Czechia is complex and challenging to access for many people. Labor offices responsible for dispersing social benefits are understaffed, which results payment delays and difficulties associated with applications for benefits. Those in need are also often stigmatized, a prejudice exploited regularly by political actors.
Accessing entitled benefits is problematic. For example, only 25% of eligible parents apply for child benefits, and only a fifth of those eligible for housing benefits receive them. Beginning in January 2024, changes under the government’s expenditure-saving budget reforms will reduce unemployment benefits for some claimants. These benefits are already quite stringent, starting at 65% of previous earnings for two months, falling to 50% for the next two months, and then to 45% for the remaining period of entitlement, which varies with age up to a maximum of five additional months. In October 2023, only 28.3% of job seekers registered at labor offices received any unemployment benefits.
Determining eligibility for social support is crucial, particularly through the living and subsistence minimums. The living minimum is the socially recognized threshold of monetary income needed to provide for food and other essential personal needs. The subsistence minimum is the minimum income necessary to cover food and other basic needs at a level that ensures survival. Neither the living minimum nor the subsistence minimum includes essential housing costs, which are covered by a separate housing benefit.
The living minimum is decisive in assessing material needs and determining entitlement to certain social benefits. In 2023, it was set at the equivalent of 11% of the average wage for a single-person household. This is the entitlement, for example, for those who are unemployed after their unemployment benefit entitlements have expired.
Another significant issue is the large number of people unable to pay their debts. As of July 2023, 660,200 people (7.6% of the total population) were under court foreclosure orders requiring the sale of property and automatic deduction from their incomes to pay off past debts. Many had multiple such orders, with a total of 4.08 million orders in force at the time. Some relief was offered by a “summer of grace” granting amnesties for some payments of interest and additional fines. The total number facing foreclosure fell slightly to 646,006 in January 2024, although the reduction primarily affected those with only minor debts (Mugglin et al. 2022: 21).
This leaves a significant proportion of the population in financial paralysis. The situation is particularly severe in old industrial areas, with 18% of the population in the Most district under foreclosure, rising to 26% among the 50–64 age group.
Accessing entitled benefits is problematic. For example, only 25% of eligible parents apply for child benefits, and only a fifth of those eligible for housing benefits receive them. Beginning in January 2024, changes under the government’s expenditure-saving budget reforms will reduce unemployment benefits for some claimants. These benefits are already quite stringent, starting at 65% of previous earnings for two months, falling to 50% for the next two months, and then to 45% for the remaining period of entitlement, which varies with age up to a maximum of five additional months. In October 2023, only 28.3% of job seekers registered at labor offices received any unemployment benefits.
Determining eligibility for social support is crucial, particularly through the living and subsistence minimums. The living minimum is the socially recognized threshold of monetary income needed to provide for food and other essential personal needs. The subsistence minimum is the minimum income necessary to cover food and other basic needs at a level that ensures survival. Neither the living minimum nor the subsistence minimum includes essential housing costs, which are covered by a separate housing benefit.
The living minimum is decisive in assessing material needs and determining entitlement to certain social benefits. In 2023, it was set at the equivalent of 11% of the average wage for a single-person household. This is the entitlement, for example, for those who are unemployed after their unemployment benefit entitlements have expired.
Another significant issue is the large number of people unable to pay their debts. As of July 2023, 660,200 people (7.6% of the total population) were under court foreclosure orders requiring the sale of property and automatic deduction from their incomes to pay off past debts. Many had multiple such orders, with a total of 4.08 million orders in force at the time. Some relief was offered by a “summer of grace” granting amnesties for some payments of interest and additional fines. The total number facing foreclosure fell slightly to 646,006 in January 2024, although the reduction primarily affected those with only minor debts (Mugglin et al. 2022: 21).
This leaves a significant proportion of the population in financial paralysis. The situation is particularly severe in old industrial areas, with 18% of the population in the Most district under foreclosure, rising to 26% among the 50–64 age group.
Citations:
https://www.charita.cz/kdo-jsme/pro-media/tiskove-zpravy/vychazi-poverty-watch-zprava-o-stavu-chudoby-v-cesku/
https://statistiky.ekcr.info/statistiky/celkove-povinnych.html
https://www.institut-predluzeni.cz/mapy-a-statistiky/exekuce/
http://mapaexekuci.cz/index.php/mapa-2/
https://www.mpsv.cz/documents/20142/4895582/Informace+o+vyplacen%C3%BDch+d%C3%A1vk%C3%A1ch+v+%C5%99%C3%ADjnu+2023.pdf/5a4f2f69-6120-5972-5638-7e58cf61ce52
https://www.charita.cz/kdo-jsme/pro-media/tiskove-zpravy/vychazi-poverty-watch-zprava-o-stavu-chudoby-v-cesku/
https://statistiky.ekcr.info/statistiky/celkove-povinnych.html
https://www.institut-predluzeni.cz/mapy-a-statistiky/exekuce/
http://mapaexekuci.cz/index.php/mapa-2/
https://www.mpsv.cz/documents/20142/4895582/Informace+o+vyplacen%C3%BDch+d%C3%A1vk%C3%A1ch+v+%C5%99%C3%ADjnu+2023.pdf/5a4f2f69-6120-5972-5638-7e58cf61ce52
France
Minimum income requirements do – in principle – allow for the satisfaction of basic human needs, whereas the situation is more complicated for persons living on the basic social income (RSA). The latter will usually limit access to decent housing.
By law, every legal resident in France is entitled to a bank account. An individual that has trouble opening an account may demand support from the French central bank, whose services will designate a bank that must open an account on behalf of that person.
Public transport is accessible to more than 70% of French residents. Yet France’s large size limits access to public transportation services outside urban areas. Moreover, rising fuel prices have raised the cost of private transport since Russia’s invasion of Ukraine. Although the government initially subsidized fuel massively to keep prices low, most aid has been phased out since early 2023. Residents can still apply for a conditional €100 subsidy.
Finally, significant inequalities remain in the digital infrastructure, with an estimated 4.5 million people lacking internet access. This also creates an increasingly pressing inequality with regard to people’s effective ability to access (public) services that are increasingly and sometimes exclusively provided on the internet.
By law, every legal resident in France is entitled to a bank account. An individual that has trouble opening an account may demand support from the French central bank, whose services will designate a bank that must open an account on behalf of that person.
Public transport is accessible to more than 70% of French residents. Yet France’s large size limits access to public transportation services outside urban areas. Moreover, rising fuel prices have raised the cost of private transport since Russia’s invasion of Ukraine. Although the government initially subsidized fuel massively to keep prices low, most aid has been phased out since early 2023. Residents can still apply for a conditional €100 subsidy.
Finally, significant inequalities remain in the digital infrastructure, with an estimated 4.5 million people lacking internet access. This also creates an increasingly pressing inequality with regard to people’s effective ability to access (public) services that are increasingly and sometimes exclusively provided on the internet.
Citations:
Union des transports publics et ferroviaires. 2023. “Le chiffres clés du transport public.”
Union des transports publics et ferroviaires. 2023. “Le chiffres clés du transport public.”
Germany
While the previous text outlined existing policies, the following text illustrates their quality. As Germany introduced the unemployment benefit reform in 2023, no statistics are yet available to assess how well the new benefit ensures the fulfillment of basic human needs. The following statements are therefore based on the preceding unemployment benefit.
Nevertheless, while minimum-income benefits under SGB II and XII are calculated based on an income and consumption sample to ensure the socio-cultural subsistence minimum, they are often criticized as insufficient. Simultaneously, critics argue that the increased allowance from the citizens’ benefit reduces the motivation for unemployed individuals to seek work (Handelsblatt, 2022).
Despite the coverage of housing costs through minimum-income benefits or housing allowances, 41.5% of the population at risk of poverty spent more than 40% of their disposable income on total housing costs in 2022. This is significantly higher than the EU average of 33.1% (Eurostat, 2023a).
To assess the quality of policies ensuring access to water and sanitation, the proportion of the population with utility bill arrears can be considered. In 2018, 7.4% of the population at risk of poverty in Germany had arrears on their utility bills. Although this proportion was higher than that of the total German population, it was significantly below the EU-27 average of 16.3%. Furthermore, an interruption of the water supply in Germany can only occur in the case of eviction (European Commission, 2020).
In contrast, the number of people at risk of poverty who could not afford regular use of public transportation in 2014 was above the EU-27 average: 9.9% compared to 5.8%. Additionally, the share of low-income individuals reporting they could not use public transportation regularly was more than 5 percentage points higher than the share of the total population facing the same difficulties. However, because these statistics are from 2014, the effect of the new Deutschlandticket has not been taken into account.
According to the European Social Policy Network (ESPN), Germany has national coverage of uninterrupted basic energy supply (European Commission, 2022). While this indicates that every household can access energy, cash benefits do not seem to fully ensure complete access to energy. As described under “Policies Targeting Equal Access to Essential Services and Basic Income Support,” 13.6% of the population at risk of poverty could not keep their homes adequately warm in 2022. Still, this share is lower than the EU average of 20.1% (Eurostat, 2023b).
Regarding access to digital infrastructure, available cash benefits often do not enable full access to an internet connection for personal use at home. While only 2.6% of the overall population could not afford an internet connection in 2022, this share increases considerably for unemployed people to 11.9%, which is above the EU average of 6.9% (Eurostat, 2023c).
Finally, according to ESPN national experts, Germany’s policies generally make it easy for consumers to open a Basic Account. However, these accounts can be expensive, potentially costing more than standard bank accounts, which can deter people from accessing such accounts (European Commission, 2020).
Nevertheless, while minimum-income benefits under SGB II and XII are calculated based on an income and consumption sample to ensure the socio-cultural subsistence minimum, they are often criticized as insufficient. Simultaneously, critics argue that the increased allowance from the citizens’ benefit reduces the motivation for unemployed individuals to seek work (Handelsblatt, 2022).
Despite the coverage of housing costs through minimum-income benefits or housing allowances, 41.5% of the population at risk of poverty spent more than 40% of their disposable income on total housing costs in 2022. This is significantly higher than the EU average of 33.1% (Eurostat, 2023a).
To assess the quality of policies ensuring access to water and sanitation, the proportion of the population with utility bill arrears can be considered. In 2018, 7.4% of the population at risk of poverty in Germany had arrears on their utility bills. Although this proportion was higher than that of the total German population, it was significantly below the EU-27 average of 16.3%. Furthermore, an interruption of the water supply in Germany can only occur in the case of eviction (European Commission, 2020).
In contrast, the number of people at risk of poverty who could not afford regular use of public transportation in 2014 was above the EU-27 average: 9.9% compared to 5.8%. Additionally, the share of low-income individuals reporting they could not use public transportation regularly was more than 5 percentage points higher than the share of the total population facing the same difficulties. However, because these statistics are from 2014, the effect of the new Deutschlandticket has not been taken into account.
According to the European Social Policy Network (ESPN), Germany has national coverage of uninterrupted basic energy supply (European Commission, 2022). While this indicates that every household can access energy, cash benefits do not seem to fully ensure complete access to energy. As described under “Policies Targeting Equal Access to Essential Services and Basic Income Support,” 13.6% of the population at risk of poverty could not keep their homes adequately warm in 2022. Still, this share is lower than the EU average of 20.1% (Eurostat, 2023b).
Regarding access to digital infrastructure, available cash benefits often do not enable full access to an internet connection for personal use at home. While only 2.6% of the overall population could not afford an internet connection in 2022, this share increases considerably for unemployed people to 11.9%, which is above the EU average of 6.9% (Eurostat, 2023c).
Finally, according to ESPN national experts, Germany’s policies generally make it easy for consumers to open a Basic Account. However, these accounts can be expensive, potentially costing more than standard bank accounts, which can deter people from accessing such accounts (European Commission, 2020).
Citations:
European Commission, Directorate-General for Employment, Social Affairs and Inclusion, Baptista, I., Marlier, E. 2020. Access to Essential Services for People on Low Incomes in Europe: An Analysis of Policies in 35 Countries. Publications Office.
Eurostat. 2023. “Housing Cost Overburden Rate by Poverty Status – EU-SILC Survey.” https://ec.europa.eu/eurostat/databrowser/view/tessi163/default/table?lang=en
Eurostat. 2023b. “Population Unable to Keep Home Adequately Warm by Poverty Status.” https://ec.europa.eu/eurostat/databrowser/view/SDG_07_60/default/table?lang=en
Eurostat. 2023c. “Persons Who Cannot Afford Internet Connection for Personal Use at Home by Employment Status and Income Quintile.” https://ec.europa.eu/eurostat/databrowser/view/ilc_mddu07b/default/table?lang=en
Handelsblatt. 2022. “Sozialverband kritisiert neue Regelsätze als zu gering.” https://www.handelsblatt.com/politik/buergergeld-sozialverband-kritisiert-neue-regelsaetze-als-zu-gering/28675686.html
European Commission, Directorate-General for Employment, Social Affairs and Inclusion, Baptista, I., Marlier, E. 2020. Access to Essential Services for People on Low Incomes in Europe: An Analysis of Policies in 35 Countries. Publications Office.
Eurostat. 2023. “Housing Cost Overburden Rate by Poverty Status – EU-SILC Survey.” https://ec.europa.eu/eurostat/databrowser/view/tessi163/default/table?lang=en
Eurostat. 2023b. “Population Unable to Keep Home Adequately Warm by Poverty Status.” https://ec.europa.eu/eurostat/databrowser/view/SDG_07_60/default/table?lang=en
Eurostat. 2023c. “Persons Who Cannot Afford Internet Connection for Personal Use at Home by Employment Status and Income Quintile.” https://ec.europa.eu/eurostat/databrowser/view/ilc_mddu07b/default/table?lang=en
Handelsblatt. 2022. “Sozialverband kritisiert neue Regelsätze als zu gering.” https://www.handelsblatt.com/politik/buergergeld-sozialverband-kritisiert-neue-regelsaetze-als-zu-gering/28675686.html
Ireland
Ireland has historically underinvested in public services, leading to issues with both quantity and quality. While there has been some catch-up in the last two decades, with access targets set in a national action plan against poverty and individual sectoral plans, there is less focus on the quality of service delivery. Despite this, there is a sense of general improvement, digitalization and an embedding of a customer service culture. The main issues for many still concern access rather than the quality of services accessed. The basic income support system is effective and efficient, but capacity issues often stall policy innovation due to fears of IT collapse if overloaded. There is a premium on the effective delivery of weekly payments in a clientelistic political system where politicians often claim “success” for delivering public services and income supports, although this is changing culturally.
Specific quality issues include damp social housing, water quality (with boil water notices and rural E. coli contamination), and energy costs (with pressures to self-disconnect by not filling prepaid meters or choosing between water and food). In public transport and digital infrastructure, such as rural broadband, there are specific access issues for rural households. Policy is also seeking to improve access to financial services, such as banking, cheap credit and mortgages. MABS (the Money Advice and Budgeting Services) provides debt relief services, and there has been regulatory reform regarding indebtedness.
The income support system comprises means-tested, social insurance, and age-specific universal payments. Strong arguments exist for reforming child income support to better target child poverty and low-income families, as well as for universal pensions. In working-age payments, there has been a structural shift to means-tested payments, with demands to shift back to non-means-tested payments and reintroduce pay-related social insurance payments. The largest issue appears to be adequacy rather than targeting per se, although various commissions have argued for more tapered payments to enable life transitions, effectively arguing against overly precise targeting (CTW 2023). The same report also called for more revenue-gathering mechanisms to meet future needs.
Specific quality issues include damp social housing, water quality (with boil water notices and rural E. coli contamination), and energy costs (with pressures to self-disconnect by not filling prepaid meters or choosing between water and food). In public transport and digital infrastructure, such as rural broadband, there are specific access issues for rural households. Policy is also seeking to improve access to financial services, such as banking, cheap credit and mortgages. MABS (the Money Advice and Budgeting Services) provides debt relief services, and there has been regulatory reform regarding indebtedness.
The income support system comprises means-tested, social insurance, and age-specific universal payments. Strong arguments exist for reforming child income support to better target child poverty and low-income families, as well as for universal pensions. In working-age payments, there has been a structural shift to means-tested payments, with demands to shift back to non-means-tested payments and reintroduce pay-related social insurance payments. The largest issue appears to be adequacy rather than targeting per se, although various commissions have argued for more tapered payments to enable life transitions, effectively arguing against overly precise targeting (CTW 2023). The same report also called for more revenue-gathering mechanisms to meet future needs.
Citations:
DSP. 2022. Statistical Report 2022. Dublin: Department of Social Protection. https://www.gov.ie/pdf/?file=https://assets.gov.ie/262944/3bdd325b-db94-4daf-90c3-b6c00682a7d9.pdf#page=null
Murphy, M. P. 2023. Creating an Eco Social Welfare State. Bristol: Policy Press.
Commission on Tax and Welfare. 2023. “Foundations for the Future.” https://www.gov.ie/en/publication/7fbeb-report-of-the-commission/
DSP. 2022. Statistical Report 2022. Dublin: Department of Social Protection. https://www.gov.ie/pdf/?file=https://assets.gov.ie/262944/3bdd325b-db94-4daf-90c3-b6c00682a7d9.pdf#page=null
Murphy, M. P. 2023. Creating an Eco Social Welfare State. Bristol: Policy Press.
Commission on Tax and Welfare. 2023. “Foundations for the Future.” https://www.gov.ie/en/publication/7fbeb-report-of-the-commission/
Spain
The minimum vital income (MVI) guarantees a minimum standard of living and fulfills basic human needs in Spain. For individual beneficiaries, the support is set each year at the amount of non-contributory pensions. In 2022, an adult household without dependent children that met all the requirements could receive a maximum of €5,899.60 per year. This guaranteed income increases as the household size grows.
In 2023, an extraordinary 15% increase in the MVI amounts was approved. Most autonomous communities have adjusted their regulations governing minimum incomes to align with the state benefit. These regional minimum incomes complement the state benefit and account for various living costs, such as housing, energy, and public transport, specific to each autonomous community.
To mitigate the impact of rising energy prices and interest rates on vulnerable populations, the government implemented several measures in 2022. These include lowering VAT on natural gas and basic foodstuffs, offering free medium-distance public transport by rail, and implementing protections for mortgagors without resources. These measures were extended on January 10, 2024.
In 2023, an extraordinary 15% increase in the MVI amounts was approved. Most autonomous communities have adjusted their regulations governing minimum incomes to align with the state benefit. These regional minimum incomes complement the state benefit and account for various living costs, such as housing, energy, and public transport, specific to each autonomous community.
To mitigate the impact of rising energy prices and interest rates on vulnerable populations, the government implemented several measures in 2022. These include lowering VAT on natural gas and basic foodstuffs, offering free medium-distance public transport by rail, and implementing protections for mortgagors without resources. These measures were extended on January 10, 2024.
Citations:
Royal Decree Law 6/2022 of 29 March
Royal Decree Law 17/2022 of 20 September
Royal Decree Law 8/2023 of 27 September
Royal Decree Law 6/2022 of 29 March
Royal Decree Law 17/2022 of 20 September
Royal Decree Law 8/2023 of 27 September
6
Australia
Australia’s sustained economic growth has generated high levels of public services for most of the population. However, gaps remain, especially in regional areas. Government safety net programs support zero/low-income families and individuals in obtaining essential services. Although the number of people requiring these services has decreased over time, those who do need them face a growing gap between their needs and what programs like JobSeeker and Parent Payments provide (Phillips and Narayanan 2022).
Housing availability and affordability have been significant issues, particularly in urban areas. Governments at both national and state levels have recently taken steps to address these issues. Measures include agreements to align efforts of governments, the construction sector, and institutional investors to rapidly increase affordable homes within five years and boost amenities and services to support this housing stock (AIHW 2023).
Housing availability and affordability have been significant issues, particularly in urban areas. Governments at both national and state levels have recently taken steps to address these issues. Measures include agreements to align efforts of governments, the construction sector, and institutional investors to rapidly increase affordable homes within five years and boost amenities and services to support this housing stock (AIHW 2023).
Citations:
Phillips, B., and Narayanan, V. 2022. “Financial Stress and Social Security Settings in Australia.” ANU Centre for Social Research and Methods. https://csrm.cass.anu.edu.au/sites/default/files/docs/2021/4/Financial_Stress_and_Social_Security_Settings_in_Australia_PDF.pdf
AIHW. 2023. “Housing assistance in Australia.” https://www.aihw.gov.au/reports/housing-assistance/housing-assistance-in-australia/contents/housing-assistance
Phillips, B., and Narayanan, V. 2022. “Financial Stress and Social Security Settings in Australia.” ANU Centre for Social Research and Methods. https://csrm.cass.anu.edu.au/sites/default/files/docs/2021/4/Financial_Stress_and_Social_Security_Settings_in_Australia_PDF.pdf
AIHW. 2023. “Housing assistance in Australia.” https://www.aihw.gov.au/reports/housing-assistance/housing-assistance-in-australia/contents/housing-assistance
Canada
Many problems exist with basic income support measures in the Canadian welfare state. These include the fact that basic income levels may not be sufficient to fully cover market-rate housing costs in many Canadian cities. Additional subsidized housing programs are needed to meet this basic need but take years to develop (Evans et al. 2021).
Basic income supports, however, do not fully cover household energy or food costs (Men et al. 2016). Specific energy and food subsidies may exist but differ depending on provincial policies. Public transport is heavily subsidized in major cities.
Overall, Canada scores well on international rankings for meeting basic needs. However, assessments reveal gaps in areas such as housing, food security, mental healthcare, and Indigenous communities. Water and sanitation needs are generally met through public infrastructure, not directly through income benefits. Nevertheless, higher benefits could improve affordability. Increases in basic income could also enhance internet affordability.
Basic income supports, however, do not fully cover household energy or food costs (Men et al. 2016). Specific energy and food subsidies may exist but differ depending on provincial policies. Public transport is heavily subsidized in major cities.
Overall, Canada scores well on international rankings for meeting basic needs. However, assessments reveal gaps in areas such as housing, food security, mental healthcare, and Indigenous communities. Water and sanitation needs are generally met through public infrastructure, not directly through income benefits. Nevertheless, higher benefits could improve affordability. Increases in basic income could also enhance internet affordability.
Citations:
Evans, Joshua, Damian Collins, and Jalene Anderson. 2016. “Homelessness, Bedspace and the Case for Housing First in Canada.” Social Science & Medicine 168 (November): 249–56. https://doi.org/10.1016/j.socscimed.2016.06.049
Men, Fei, Marcelo L. Urquia, and Valerie Tarasuk. 2021. “The Role of Provincial Social Policies and Economic Environments in Shaping Food Insecurity among Canadian Families with Children.” Preventive Medicine 148: 106558. https://doi.org/10.1016/j.ypmed.2021.106558
Evans, Joshua, Damian Collins, and Jalene Anderson. 2016. “Homelessness, Bedspace and the Case for Housing First in Canada.” Social Science & Medicine 168 (November): 249–56. https://doi.org/10.1016/j.socscimed.2016.06.049
Men, Fei, Marcelo L. Urquia, and Valerie Tarasuk. 2021. “The Role of Provincial Social Policies and Economic Environments in Shaping Food Insecurity among Canadian Families with Children.” Preventive Medicine 148: 106558. https://doi.org/10.1016/j.ypmed.2021.106558
Estonia
Overall, anti-poverty policy remained unchanged in 2019 – 2021. Some temporary support schemes were introduced at the end of 2021 to compensate for the sharp increase in living costs due to rising energy and electricity prices. In 2022 a temporary energy compensation scheme was implemented, and the debate about the concept of energy poverty began to emerge. Although the social exclusion of ethnic minorities decreased, partly due to government integration programs, unemployment and poverty rates remain somewhat higher among minority groups. Levels of subjective inequality among the Russian minority are significantly higher than among Estonians.
Regarding benefits in kind, free bus transport, available in the capital city since 2013 and later expanded, now serves 11 out of 15 counties in Estonia (EC 2020). This initiative aimed to improve access to services and jobs for people in rural areas. However, the recent budgetary situation has raised concerns about its inefficiency, prompting proposals to abolish it.
The “last mile” project has enhanced the country’s digital infrastructure in an attempt to bring high-speed broadband to remote areas. However, as of 2022 – 2023, approximately 8% of households, primarily in rural areas, still lacked modern internet access. These households must wait for agreements between municipalities and network builders to finalize the project for end-users.
Regarding benefits in kind, free bus transport, available in the capital city since 2013 and later expanded, now serves 11 out of 15 counties in Estonia (EC 2020). This initiative aimed to improve access to services and jobs for people in rural areas. However, the recent budgetary situation has raised concerns about its inefficiency, prompting proposals to abolish it.
The “last mile” project has enhanced the country’s digital infrastructure in an attempt to bring high-speed broadband to remote areas. However, as of 2022 – 2023, approximately 8% of households, primarily in rural areas, still lacked modern internet access. These households must wait for agreements between municipalities and network builders to finalize the project for end-users.
Latvia
The Social Services Improvement and Development Plan 2022 – 2024 has been designed to facilitate the effective development of social services that cater to the needs of individuals.
The Public Utilities Commission ensures that the service quality of regulated companies adheres to specific standards. For instance, in Latvia, electricity consumers who experience poor voltage quality are eligible for a reduced system service tariff. Last year, this concession was extended to 129 users. Additionally, the Public Utilities Commission oversees the service quality of internet, voice, SMS, and television program distribution. The commission updated its methodology to enhance the accuracy and clarity of service quality assessments, which was implemented in October.
Beginning in January 2024, Latvia will raise the thresholds for guaranteed minimum income (GMI) and other social assistance to align them with the median income. For 2024, the GMI threshold for the first or sole person in a household will be €137 (up from €125), with additional household members at €96 (previously €87.50). The thresholds for poor and less well-off households will also increase, with the maximum income threshold set at €549 for the first or sole person and €384 for additional members.
In Latvia, municipal social assistance comprises two primary benefits based on household income: the Guaranteed Minimum Income (GMI) and housing benefit. The GMI benefit fills the gap between household income and the GMI threshold. Housing benefit calculations apply different household coefficients based on their composition, such as pensioners living alone or households with disabled members. These coefficients vary from 2.5 for a pensioner or disabled person living alone, two for households of only retirement age or disabled persons, two for households with pension-age or disabled persons and children, and 1.5 for other households.
Income thresholds for poor and low-income households vary, with each municipality setting its low-income threshold at a maximum of 80% of the median income. Changes in 2024 include an increase in these income thresholds, exemplified by amendments in Riga that raise the low-income threshold, potentially benefiting more residents. In the second half of 2023, the low-income threshold in Riga was 70% of the median income – €439 for the first or only person, and €307 for each additional person. In 2024, the income threshold for a low-income household in Riga will be €549 for the first or only person, €68 more than the current threshold, and €384 for each additional person in the household. Citizens can verify their eligibility for social assistance with their local municipality.
The Public Utilities Commission ensures that the service quality of regulated companies adheres to specific standards. For instance, in Latvia, electricity consumers who experience poor voltage quality are eligible for a reduced system service tariff. Last year, this concession was extended to 129 users. Additionally, the Public Utilities Commission oversees the service quality of internet, voice, SMS, and television program distribution. The commission updated its methodology to enhance the accuracy and clarity of service quality assessments, which was implemented in October.
Beginning in January 2024, Latvia will raise the thresholds for guaranteed minimum income (GMI) and other social assistance to align them with the median income. For 2024, the GMI threshold for the first or sole person in a household will be €137 (up from €125), with additional household members at €96 (previously €87.50). The thresholds for poor and less well-off households will also increase, with the maximum income threshold set at €549 for the first or sole person and €384 for additional members.
In Latvia, municipal social assistance comprises two primary benefits based on household income: the Guaranteed Minimum Income (GMI) and housing benefit. The GMI benefit fills the gap between household income and the GMI threshold. Housing benefit calculations apply different household coefficients based on their composition, such as pensioners living alone or households with disabled members. These coefficients vary from 2.5 for a pensioner or disabled person living alone, two for households of only retirement age or disabled persons, two for households with pension-age or disabled persons and children, and 1.5 for other households.
Income thresholds for poor and low-income households vary, with each municipality setting its low-income threshold at a maximum of 80% of the median income. Changes in 2024 include an increase in these income thresholds, exemplified by amendments in Riga that raise the low-income threshold, potentially benefiting more residents. In the second half of 2023, the low-income threshold in Riga was 70% of the median income – €439 for the first or only person, and €307 for each additional person. In 2024, the income threshold for a low-income household in Riga will be €549 for the first or only person, €68 more than the current threshold, and €384 for each additional person in the household. Citizens can verify their eligibility for social assistance with their local municipality.
Citations:
Ministru kabinets. 2022. “Par Sociālo pakalpojumu pilnveidošanas un attīstības plānu 2022.-2024. gadam.” https://www.mk.gov.lv/lv/valsts-atbalsts-iedzivotajiem-energoresursu-cenu-pieauguma-kompensacijai
Sabiedrisko Pakalpojumu Regulēšanas Komisija. 2023. Gada pārskats 2022. https://www.sprk.gov.lv/sites/default/files/editor/SPRK_gada_parskats_2022_.pdf.
Rīgas valstspilsētas pašvaldības Labklājības departaments. “Maznodrošinātas mājsaimniecības statuss.” https://ld.riga.lv/lv/sociala-palidziba/maznodrosinata-statuss.html
LV portāls. 2023. “GMI un citu sociālās palīdzības minimālo ienākumu sliekšņi 2024. gadā kļūst augstāki.” https://lvportals.lv/skaidrojumi/358761-gmi-un-citu-socialas-palidzibas-minimalo-ienakumu-slieksni-2024-gada-klus-augstaki-2023
Ministru kabinets. 2022. “Par Sociālo pakalpojumu pilnveidošanas un attīstības plānu 2022.-2024. gadam.” https://www.mk.gov.lv/lv/valsts-atbalsts-iedzivotajiem-energoresursu-cenu-pieauguma-kompensacijai
Sabiedrisko Pakalpojumu Regulēšanas Komisija. 2023. Gada pārskats 2022. https://www.sprk.gov.lv/sites/default/files/editor/SPRK_gada_parskats_2022_.pdf.
Rīgas valstspilsētas pašvaldības Labklājības departaments. “Maznodrošinātas mājsaimniecības statuss.” https://ld.riga.lv/lv/sociala-palidziba/maznodrosinata-statuss.html
LV portāls. 2023. “GMI un citu sociālās palīdzības minimālo ienākumu sliekšņi 2024. gadā kļūst augstāki.” https://lvportals.lv/skaidrojumi/358761-gmi-un-citu-socialas-palidzibas-minimalo-ienakumu-slieksni-2024-gada-klus-augstaki-2023
Lithuania
Existing essential public services and basic income support programs are largely aligned with the goal of satisfying basic human needs. State and municipal institutions provide social support, usually in a targeted and means-tested way, to enable people to access housing, water, sanitation and energy. The digital infrastructure is well developed in the country, with strong competition in the telecommunications services sector allowing consumers to benefit from relatively low prices and broad coverage. The public transport infrastructure is also well developed, although more investment is needed to maintain its quality. Increasingly, more municipalities have been experimenting with the provision of free services, covered from their municipal budgets. However, the relatively high rate of poverty and the relatively low level of adequacy of the guaranteed minimum income benefits suggest that the level of support could still be improved.
Citations:
Ministry of Social Security and Labor. “Social support to Low-Income people (in Lithuanian).” https://socmin.lrv.lt/lt/veiklos-sritys/seima-ir-vaikai/socialine-parama-seimoms-ir-vaikams/pinigine-socialine-parama-nepasiturintiems-gyventojams-socialine-pasalpa-busto-sildymo-geriamojo-ir-karsto-vandens-islaidu-kompensacijos
Baptista, I., and E. Marlier. 2020. Access to Essential Services for People on Low Incomes in Europe.
An analysis of policies in 35 countries. Brussels: European Commission.
Ministry of Social Security and Labor. “Social support to Low-Income people (in Lithuanian).” https://socmin.lrv.lt/lt/veiklos-sritys/seima-ir-vaikai/socialine-parama-seimoms-ir-vaikams/pinigine-socialine-parama-nepasiturintiems-gyventojams-socialine-pasalpa-busto-sildymo-geriamojo-ir-karsto-vandens-islaidu-kompensacijos
Baptista, I., and E. Marlier. 2020. Access to Essential Services for People on Low Incomes in Europe.
An analysis of policies in 35 countries. Brussels: European Commission.
New Zealand
New Zealand’s social welfare system includes various forms of support aimed at fulfilling basic human needs. These benefits programs assist individuals and families with income support, housing costs, energy costs, public transport costs and costs related to accessing digital infrastructure. The effectiveness of these benefits depends on several factors, such as regional differences in living costs and the resourcing of social services.
Generally, social spending in New Zealand – defined as comprising cash benefits, direct in-kind provision of goods and services, and tax breaks with social purposes – is slightly lower than the OECD average (20.8% of GDP compared to 21.1%) (OECD 2022). The new National-led coalition has announced that it will reduce social spending, though it is not yet clear by how much (RNZ 2023).
Evidence suggests that social policies and services are particularly ineffective in the area of housing. New Zealand has been grappling with a long-running housing crisis, and housing affordability is a significant concern, especially for renters. In 2022, one in four rental households spent more than 40% of their disposable income on housing costs (Stats NZ 2023). Upward pressure on house prices and rents has caused the public housing waitlist to balloon in recent years, with the recorded median time needed to find housing rising to nearly 300 days (Hu 2023). Meanwhile, the number of households living in emergency housing for more than two years doubled between 2022 and 2023 (Neilson 2023).
New Zealand continues to face a child poverty crisis. Though the situation has improved somewhat due to a combination of factors – including high employment and expansions to the social safety net under the Ardern government (Prickett 2023) – UNICEF’s 2023 “Child Poverty in the Midst of Wealth” report, which compares child poverty rates in high-income and upper-middle-income societies, still ranks New Zealand only 19th out of 39 countries. Moreover, the report notes that poverty rates are much higher among Māori and Pasifika children (20% and 24%, respectively) than among children of European descent (around 8%) (Gibson 2023). Newly elected Prime Minister Christopher Luxon has promised to lift a further 78,000 children out of poverty by 2028, but this has been criticized as unrealistic given National’s plans to cut social spending (Cheng 2023).
Generally, social spending in New Zealand – defined as comprising cash benefits, direct in-kind provision of goods and services, and tax breaks with social purposes – is slightly lower than the OECD average (20.8% of GDP compared to 21.1%) (OECD 2022). The new National-led coalition has announced that it will reduce social spending, though it is not yet clear by how much (RNZ 2023).
Evidence suggests that social policies and services are particularly ineffective in the area of housing. New Zealand has been grappling with a long-running housing crisis, and housing affordability is a significant concern, especially for renters. In 2022, one in four rental households spent more than 40% of their disposable income on housing costs (Stats NZ 2023). Upward pressure on house prices and rents has caused the public housing waitlist to balloon in recent years, with the recorded median time needed to find housing rising to nearly 300 days (Hu 2023). Meanwhile, the number of households living in emergency housing for more than two years doubled between 2022 and 2023 (Neilson 2023).
New Zealand continues to face a child poverty crisis. Though the situation has improved somewhat due to a combination of factors – including high employment and expansions to the social safety net under the Ardern government (Prickett 2023) – UNICEF’s 2023 “Child Poverty in the Midst of Wealth” report, which compares child poverty rates in high-income and upper-middle-income societies, still ranks New Zealand only 19th out of 39 countries. Moreover, the report notes that poverty rates are much higher among Māori and Pasifika children (20% and 24%, respectively) than among children of European descent (around 8%) (Gibson 2023). Newly elected Prime Minister Christopher Luxon has promised to lift a further 78,000 children out of poverty by 2028, but this has been criticized as unrealistic given National’s plans to cut social spending (Cheng 2023).
Citations:
Cheng, D. 2023. “Election 2023: Child poverty at issue as National, Labour vie over fiscal holes, welfare changes.” New Zealand Herald September 30. https://www.nzherald.co.nz/nz/politics/election-2023-child-poverty-at-issue-as-national-labour-vie-over-fiscal-holes-welfare-changes/2T6Q2AMNJ5AWHJFSVUVUL34ZQI
Gibson, G. 2023. “New Zealand moves up global child poverty rankings, UNICEF says new government must prioritise children ahead of tax cuts.” Newshub, December 6. https://www.newshub.co.nz/home/politics/2023/12/new-zealand-moves-up-global-child-poverty-rankings-unicef-says-new-government-must-prioritise-children-ahead-of-tax-cuts.html
Hu, J. 2023. “Public Housing Waitlist Spikes, Over 25,000 Households Waiting.” 1News, December 2. https://www.1news.co.nz/2023/12/02/public-housing-waitlist-spikes-over-25000-households-waiting/
Neilson, M. 2023. “Cost of living: Number of households spending over two years in emergency housing doubles in past year.” New Zealand Herald, April 16. https://www.nzherald.co.nz/nz/politics/cost-of-living-number-of-households-spending-over-two-years-in-emergency-housing-doubles-in-past-year/ZT67M7EZ6NDGPD3RRHIDR24QEA/
OECD. 2022. “OECD Data: Social Spending.” https://data.oecd.org/socialexp/social-spending.htm#indicator-chart
Prickett, K. C. 2023. “NZ is finally making progress on child poverty – but a ‘no frills’ budget puts that at risk.” The Conversation, May 17. https://www.rnz.co.nz/news/on-the-inside/490105/nz-is-finally-making-progress-on-child-poverty-but-a-no-frills-budget-puts-that-at-risk
RNZ. 2023. “Election 2023: National Party Fiscal Plan Promises Lower Taxes, Disciplined Government Spending.” September 29. https://www.rnz.co.nz/news/political/499024/election-2023-national-party-fiscal-plan-promises-lower-taxes-disciplined-government-spending
Stats NZ. 2023. “Housing affordability more challenging for renters than homeowners.” https://www.stats.govt.nz/news/housing-affordability-more-challenging-for-renters-than-homeowners/
Cheng, D. 2023. “Election 2023: Child poverty at issue as National, Labour vie over fiscal holes, welfare changes.” New Zealand Herald September 30. https://www.nzherald.co.nz/nz/politics/election-2023-child-poverty-at-issue-as-national-labour-vie-over-fiscal-holes-welfare-changes/2T6Q2AMNJ5AWHJFSVUVUL34ZQI
Gibson, G. 2023. “New Zealand moves up global child poverty rankings, UNICEF says new government must prioritise children ahead of tax cuts.” Newshub, December 6. https://www.newshub.co.nz/home/politics/2023/12/new-zealand-moves-up-global-child-poverty-rankings-unicef-says-new-government-must-prioritise-children-ahead-of-tax-cuts.html
Hu, J. 2023. “Public Housing Waitlist Spikes, Over 25,000 Households Waiting.” 1News, December 2. https://www.1news.co.nz/2023/12/02/public-housing-waitlist-spikes-over-25000-households-waiting/
Neilson, M. 2023. “Cost of living: Number of households spending over two years in emergency housing doubles in past year.” New Zealand Herald, April 16. https://www.nzherald.co.nz/nz/politics/cost-of-living-number-of-households-spending-over-two-years-in-emergency-housing-doubles-in-past-year/ZT67M7EZ6NDGPD3RRHIDR24QEA/
OECD. 2022. “OECD Data: Social Spending.” https://data.oecd.org/socialexp/social-spending.htm#indicator-chart
Prickett, K. C. 2023. “NZ is finally making progress on child poverty – but a ‘no frills’ budget puts that at risk.” The Conversation, May 17. https://www.rnz.co.nz/news/on-the-inside/490105/nz-is-finally-making-progress-on-child-poverty-but-a-no-frills-budget-puts-that-at-risk
RNZ. 2023. “Election 2023: National Party Fiscal Plan Promises Lower Taxes, Disciplined Government Spending.” September 29. https://www.rnz.co.nz/news/political/499024/election-2023-national-party-fiscal-plan-promises-lower-taxes-disciplined-government-spending
Stats NZ. 2023. “Housing affordability more challenging for renters than homeowners.” https://www.stats.govt.nz/news/housing-affordability-more-challenging-for-renters-than-homeowners/
Poland
Various social issues have been addressed via social assistance programs, including disability, homelessness, poverty, social exclusion (marginalization) and unemployment. The organizational units responsible for providing social assistance are well-structured, albeit underpaid, and include regional centers for social policy, county family assistance centers and social assistance centers.
In 2022 and 2023, Poland experienced significant turmoil, characterized by rampant inflation and political instability. Benefits related to incapacity to work or having children sharply declined in value. The well-known 500+ per child benefit effectively dwindled to PLN 335, and the fixed allowance provided to the poorest individuals who are unable to work (PLN 710) realistically fell to approximately 560 PLN between January 2022 and March 2023. It is important to note that individuals in households relying on social benefits (excluding pensions) constitute the population that is most vulnerable to extreme poverty. The government was unable to increase the value of these benefits, which led to prolonged structural poverty.
Another group affected by poverty was the residents of smaller towns and villages, where various factors overlapped. Among other things, this included energy poverty that affected up to 10% of the population. In smaller communities, residents also faced challenges related to transportation poverty. The state does not ensure access to public transportation, with difficulties thus periodically affecting around 14 million people. Moreover, the transportation provided by local authorities has not resolved this issue. Consequently, a significant number of Poles choose personal cars as their main means of transportation. The average age of these cars is 15 to 17 years, with deleterious consequences for the environment.
A significant problem has also emerged with regard to child poverty. After years of decline from the 2015 rate of 9%, 2022 was the first year that did not see a change in the scale of child poverty, with the rate remaining at 5%. This stability was attributed to the 500+ program, but it necessitates annual indexing rather than political maneuvers implemented before elections. Digital and financial services are mostly accessible, but certain groups, especially older people, have limited access.
In 2022 and 2023, Poland experienced significant turmoil, characterized by rampant inflation and political instability. Benefits related to incapacity to work or having children sharply declined in value. The well-known 500+ per child benefit effectively dwindled to PLN 335, and the fixed allowance provided to the poorest individuals who are unable to work (PLN 710) realistically fell to approximately 560 PLN between January 2022 and March 2023. It is important to note that individuals in households relying on social benefits (excluding pensions) constitute the population that is most vulnerable to extreme poverty. The government was unable to increase the value of these benefits, which led to prolonged structural poverty.
Another group affected by poverty was the residents of smaller towns and villages, where various factors overlapped. Among other things, this included energy poverty that affected up to 10% of the population. In smaller communities, residents also faced challenges related to transportation poverty. The state does not ensure access to public transportation, with difficulties thus periodically affecting around 14 million people. Moreover, the transportation provided by local authorities has not resolved this issue. Consequently, a significant number of Poles choose personal cars as their main means of transportation. The average age of these cars is 15 to 17 years, with deleterious consequences for the environment.
A significant problem has also emerged with regard to child poverty. After years of decline from the 2015 rate of 9%, 2022 was the first year that did not see a change in the scale of child poverty, with the rate remaining at 5%. This stability was attributed to the 500+ program, but it necessitates annual indexing rather than political maneuvers implemented before elections. Digital and financial services are mostly accessible, but certain groups, especially older people, have limited access.
Portugal
While Portugal’s government social policies aim to reduce socioeconomic disparities and social exclusion, and benefits are available to those in need, these measures have been only partially effective in preventing poverty. As of 2022, the poverty risk rate after social transfers remained at 17% – an increase from both the previous year and 2019, the year before the pandemic (PORDATA, 2023). This statistic translates to about 1.78 million people living on less than €591 per month. Notably, children under 18 are the most vulnerable to poverty, whereas the working-age population faces the lowest risk. Additionally, women are disproportionately affected by poverty compared to men.
It is important to note that the social transfers considered in this statistic may not include all the cash transfers previously mentioned. The poverty rate before social transfers in the same year was more than double, with 41.8% of the population in Portugal at risk of poverty based solely on income from work, capital, and private transfers, without government support. While Portugal has made progress in addressing social exclusion and supporting basic human needs – as evidenced by the decrease in the population experiencing severe material deprivation to 5% over the last five years – significant challenges remain.
In Portugal, a range of essential public services, including water, energy, sanitation, transport, and digital services, is legally established at the national level. To ensure access to basic needs like water, gas, internet, electricity, and public transport, the government has implemented various social tariffs.
A “social tariff” system is in place for water and wastewater collection and treatment, aimed at assisting low-income households. However, this system is not uniformly enforced across all Portuguese municipalities. The adoption of the social tariff is left to the discretion of each municipality, allowing them to choose whether to implement this measure voluntarily. The government’s program for the 2019 – 2023 legislative period includes a strategic review of the water social tariff’s implementation. The objective of this review is “so that more people may, automatically, enjoy this benefit,” reflecting a commitment to expanding access to this essential service.
For energy, Portugal relies on reduced tariffs as the sole support mechanism for low-income households since no direct cash benefits are available for energy costs. There is also a gas social tariff, but it applies only to clients of piped natural gas, excluding clients of bottled gas (except those living in social housing). The government’s program for the legislative period 2019 – 2023 includes a plan to extend the gas social tariff to city gas and liquefied petroleum gas (bottled and piped).
In the realm of public transport, students under 23 benefit from discounted rates, which are further reduced for those participating in the school social action program. Additionally, recipients of social insertion income (MI scheme) and those receiving means-tested social solidarity payments for the elderly are eligible for a 50% reduction in transport fees, while other low-income individuals receive a 25% discount (Batista and Marlier, 2020).
In contrast, housing remains a critical and unmet need, particularly in Portugal’s large cities. The housing crisis, marked by a lack of available real estate and rising costs, poses a significant challenge. A substantial part of many families’ incomes is now consumed by housing expenses, with more than 50% of households struggling to afford monthly housing costs. The situation has led to a 78% increase in homelessness since 2018 (Expresso, 2023) – underscoring the pressing need for more effective and comprehensive housing solutions.
It is important to note that the social transfers considered in this statistic may not include all the cash transfers previously mentioned. The poverty rate before social transfers in the same year was more than double, with 41.8% of the population in Portugal at risk of poverty based solely on income from work, capital, and private transfers, without government support. While Portugal has made progress in addressing social exclusion and supporting basic human needs – as evidenced by the decrease in the population experiencing severe material deprivation to 5% over the last five years – significant challenges remain.
In Portugal, a range of essential public services, including water, energy, sanitation, transport, and digital services, is legally established at the national level. To ensure access to basic needs like water, gas, internet, electricity, and public transport, the government has implemented various social tariffs.
A “social tariff” system is in place for water and wastewater collection and treatment, aimed at assisting low-income households. However, this system is not uniformly enforced across all Portuguese municipalities. The adoption of the social tariff is left to the discretion of each municipality, allowing them to choose whether to implement this measure voluntarily. The government’s program for the 2019 – 2023 legislative period includes a strategic review of the water social tariff’s implementation. The objective of this review is “so that more people may, automatically, enjoy this benefit,” reflecting a commitment to expanding access to this essential service.
For energy, Portugal relies on reduced tariffs as the sole support mechanism for low-income households since no direct cash benefits are available for energy costs. There is also a gas social tariff, but it applies only to clients of piped natural gas, excluding clients of bottled gas (except those living in social housing). The government’s program for the legislative period 2019 – 2023 includes a plan to extend the gas social tariff to city gas and liquefied petroleum gas (bottled and piped).
In the realm of public transport, students under 23 benefit from discounted rates, which are further reduced for those participating in the school social action program. Additionally, recipients of social insertion income (MI scheme) and those receiving means-tested social solidarity payments for the elderly are eligible for a 50% reduction in transport fees, while other low-income individuals receive a 25% discount (Batista and Marlier, 2020).
In contrast, housing remains a critical and unmet need, particularly in Portugal’s large cities. The housing crisis, marked by a lack of available real estate and rising costs, poses a significant challenge. A substantial part of many families’ incomes is now consumed by housing expenses, with more than 50% of households struggling to afford monthly housing costs. The situation has led to a 78% increase in homelessness since 2018 (Expresso, 2023) – underscoring the pressing need for more effective and comprehensive housing solutions.
Citations:
PORDATA. 2023. “Taxa de risco de pobreza por grupo etário: antes e após transferências sociais.”
https://www.pordata.pt/portugal/taxa+de+risco+de+pobreza+por+grupo+etario+antes+e+apos+transferencias+sociais-3009
Expresso. 2023. “Sem-abrigo aumentam 78% em quatro anos.” Semanário, October 20. https://leitor.expresso.pt/semanario/semanario2660/html/primeiro-caderno/investigacao/sem-abrigo-aumentam-78-em-quatro-anos
Batista, I., and E. Marlier. 2020. “Access to Essential Services for People on Low Incomes in Europe: An Analysis of Policies in 35 Countries.” European Social Policy Network (ESPN), European Commission. https://op.europa.eu/en/publication-detail/-/publication/9b16d965-090e-11eb-bc07-01aa75ed71a1
PORDATA. 2023. “Taxa de risco de pobreza por grupo etário: antes e após transferências sociais.”
https://www.pordata.pt/portugal/taxa+de+risco+de+pobreza+por+grupo+etario+antes+e+apos+transferencias+sociais-3009
Expresso. 2023. “Sem-abrigo aumentam 78% em quatro anos.” Semanário, October 20. https://leitor.expresso.pt/semanario/semanario2660/html/primeiro-caderno/investigacao/sem-abrigo-aumentam-78-em-quatro-anos
Batista, I., and E. Marlier. 2020. “Access to Essential Services for People on Low Incomes in Europe: An Analysis of Policies in 35 Countries.” European Social Policy Network (ESPN), European Commission. https://op.europa.eu/en/publication-detail/-/publication/9b16d965-090e-11eb-bc07-01aa75ed71a1
Switzerland
The task of combating poverty is a competence of municipalities and cantons. By implication, there is substantial regional variation. For example, old-age poverty is lowest in the canton of Basel Stadt (6%) and almost five times higher (29.5%) in the canton of Ticino (Pro Senecute 2022: 20).
A national organization, the Swiss Conference for Social Assistance, develops guidelines jointly with the cantons, municipalities, cities and private aid organizations. The guidelines are adopted by the Swiss Conference of Cantonal Directors of Social Affairs (SODK) and recommended to the cantons for application. They become binding through cantonal legislation and municipal legislation and judgment (SKOS 2023a). These guidelines are followed to varying extents in the cantons and municipalities (SKOS 2023b).
Thus, the answer to the question of the generosity of basic income benefits enabling the fulfillment of basic human needs depends to some substantial extent on the region of the person in need.
Corresponding to its level of economic and social development, Switzerland manages on average to keep its residents from poverty – provided individuals do not shy away from applying for income support due to ignorance, embarrassment about the stigmatizing effects of means-tested social assistance or their legal status.
The risk of poverty is particularly large for foreigners and elderly citizens in Switzerland. According to the OECD, the old-age poverty rate is clearly above the OECD average in Switzerland, and it is particularly widespread among women (OECD 2023: 199). The major explanatory variables are education and uninterrupted professional careers. The pension system amplifies the inequalities that exist during working life. While about 86% of all pensioners are well-off, the remaining 14% are in poverty. This poverty rate could be halved if eligible pensioners would claim social assistance, but they often refrain from doing so because of ignorance, fear of red tape, fear of contradicting their liberal values, or shame (Pro Senecute 2022, 2023).
In the housing sector, emergency structures do not meet the current need, leaving homeless persons in the streets of Swiss cities. The COVID-19 pandemic has shed new light on the social and health needs of vulnerable populations in the eyes of the authorities (Jackson et al. 2021).
The public transportation system is strongly developed and of high quality. While the Green and Socialist parties have periodically proposed making it free of charge, the idea has never been adopted.
A national organization, the Swiss Conference for Social Assistance, develops guidelines jointly with the cantons, municipalities, cities and private aid organizations. The guidelines are adopted by the Swiss Conference of Cantonal Directors of Social Affairs (SODK) and recommended to the cantons for application. They become binding through cantonal legislation and municipal legislation and judgment (SKOS 2023a). These guidelines are followed to varying extents in the cantons and municipalities (SKOS 2023b).
Thus, the answer to the question of the generosity of basic income benefits enabling the fulfillment of basic human needs depends to some substantial extent on the region of the person in need.
Corresponding to its level of economic and social development, Switzerland manages on average to keep its residents from poverty – provided individuals do not shy away from applying for income support due to ignorance, embarrassment about the stigmatizing effects of means-tested social assistance or their legal status.
The risk of poverty is particularly large for foreigners and elderly citizens in Switzerland. According to the OECD, the old-age poverty rate is clearly above the OECD average in Switzerland, and it is particularly widespread among women (OECD 2023: 199). The major explanatory variables are education and uninterrupted professional careers. The pension system amplifies the inequalities that exist during working life. While about 86% of all pensioners are well-off, the remaining 14% are in poverty. This poverty rate could be halved if eligible pensioners would claim social assistance, but they often refrain from doing so because of ignorance, fear of red tape, fear of contradicting their liberal values, or shame (Pro Senecute 2022, 2023).
In the housing sector, emergency structures do not meet the current need, leaving homeless persons in the streets of Swiss cities. The COVID-19 pandemic has shed new light on the social and health needs of vulnerable populations in the eyes of the authorities (Jackson et al. 2021).
The public transportation system is strongly developed and of high quality. While the Green and Socialist parties have periodically proposed making it free of charge, the idea has never been adopted.
Citations:
Jackson, Y., Sibourd-Beaudry, A., Regard, S., and Petrucci, R. 2021. “Populations précaires et Covid-19 : innover et collaborer pour faire face aux besoins sociaux et de santé.” Rev Med Suisse 7 (724): 243–247. URL: https://www.revmed.ch/revue-medicale-suisse/2021/revue-medicale-suisse-724/populations-precaires-et-covid-19-innover-et-collaborer-pour-faire-face-aux-besoins-sociaux-et-de-sante
OECD. 2023. Pensions at a Glance. Paris: OECD.
Pro Senecute. 2022. “Altersmonitor. Altersarmut in der Schweiz 2022, Teilbericht 1.” https://www.prosenectute.ch/de/fachwelt/publikationen/altersmonitor.html
Pro Senecute. 2023. “Altersmonitor. Nichtbezug von Ergänzungsleistungen in der Schweiz, Teilbericht 2.” https://www.prosenectute.ch/de/fachwelt/publikationen/altersmonitor.html
Schweizerische Konferenz für Sozialhilfe (SKOS). 2023a. “Die SKOS Richtlinien.” https://skos.ch/skos-richtlinien/entstehung-und-bedeutung
Schweizerische Konferenz für Sozialhilfe (SKOS). 2023. “Monitoring Sozialhilfe.” https://skos.ch/publikationen/monitoring-sozialhilfe
Jackson, Y., Sibourd-Beaudry, A., Regard, S., and Petrucci, R. 2021. “Populations précaires et Covid-19 : innover et collaborer pour faire face aux besoins sociaux et de santé.” Rev Med Suisse 7 (724): 243–247. URL: https://www.revmed.ch/revue-medicale-suisse/2021/revue-medicale-suisse-724/populations-precaires-et-covid-19-innover-et-collaborer-pour-faire-face-aux-besoins-sociaux-et-de-sante
OECD. 2023. Pensions at a Glance. Paris: OECD.
Pro Senecute. 2022. “Altersmonitor. Altersarmut in der Schweiz 2022, Teilbericht 1.” https://www.prosenectute.ch/de/fachwelt/publikationen/altersmonitor.html
Pro Senecute. 2023. “Altersmonitor. Nichtbezug von Ergänzungsleistungen in der Schweiz, Teilbericht 2.” https://www.prosenectute.ch/de/fachwelt/publikationen/altersmonitor.html
Schweizerische Konferenz für Sozialhilfe (SKOS). 2023a. “Die SKOS Richtlinien.” https://skos.ch/skos-richtlinien/entstehung-und-bedeutung
Schweizerische Konferenz für Sozialhilfe (SKOS). 2023. “Monitoring Sozialhilfe.” https://skos.ch/publikationen/monitoring-sozialhilfe
Netherlands
When it comes to essential services and basic income support, several areas require attention:
• Housing, water and sanitation: While access to water and sanitation has not been an issue in the Netherlands, there is a significant shortage of affordably priced houses. This makes it difficult for first-time buyers and students to find suitable housing. The national ban on building activities due to nitrogen emissions prevents the housing crisis from being resolved. Municipalities are taking steps to prevent speculation.
• Energy: While energy poverty has become a familiar term, this primarily relates to access to renewable sources and investments in the context of the energy transition. Overall, the compensation measures implemented have been adequate in the short term.
• Public transport: Railway services have declined in quality, becoming relatively expensive and less reliable. The number of passengers per train has not returned to pre-pandemic levels. The inadequate provision of public transportation in rural areas, where bus stops are disappearing and the frequency of buses is decreasing, is compounding this issue. This, along with other factors such as the consolidation of educational and health services, contributes to a sense of insufficient access to vital services in non-urban areas.
• Digital infrastructure: Digital inclusion for vulnerable groups such as migrants, individuals with low literacy levels and people with disabilities is a significant concern. Efforts to address this issue mostly take place at the local and regional levels, as well as within specific sectors like education, health services and municipal services.
• Public financial services (e.g., banking, debt relief services): Social welfare institutions have faced criticism for their strict and formalistic approach to addressing the financial problems of vulnerable individuals. From 2024 onward, the period within which a debt must be settled through statutory debt restructuring will be halved from 36 to 18 months.
• Housing, water and sanitation: While access to water and sanitation has not been an issue in the Netherlands, there is a significant shortage of affordably priced houses. This makes it difficult for first-time buyers and students to find suitable housing. The national ban on building activities due to nitrogen emissions prevents the housing crisis from being resolved. Municipalities are taking steps to prevent speculation.
• Energy: While energy poverty has become a familiar term, this primarily relates to access to renewable sources and investments in the context of the energy transition. Overall, the compensation measures implemented have been adequate in the short term.
• Public transport: Railway services have declined in quality, becoming relatively expensive and less reliable. The number of passengers per train has not returned to pre-pandemic levels. The inadequate provision of public transportation in rural areas, where bus stops are disappearing and the frequency of buses is decreasing, is compounding this issue. This, along with other factors such as the consolidation of educational and health services, contributes to a sense of insufficient access to vital services in non-urban areas.
• Digital infrastructure: Digital inclusion for vulnerable groups such as migrants, individuals with low literacy levels and people with disabilities is a significant concern. Efforts to address this issue mostly take place at the local and regional levels, as well as within specific sectors like education, health services and municipal services.
• Public financial services (e.g., banking, debt relief services): Social welfare institutions have faced criticism for their strict and formalistic approach to addressing the financial problems of vulnerable individuals. From 2024 onward, the period within which a debt must be settled through statutory debt restructuring will be halved from 36 to 18 months.
UK
While provisions for basic services are available to all and generally sufficient to meet basic human needs, the shortage of social housing – part of a broader housing deficit – is particularly striking. Shelter, an NGO advocating for more and better housing, estimates that more than one million households in England are on waiting lists for social housing. This lack of supply forces many into substandard rented housing. An investigation by ITV, one of the main terrestrial TV channels, exposed the desperate conditions some households have to endure. In Scotland, the waiting list is estimated at 110,000 households, with 37% waiting for over three years, according to a Household Survey published in April 2023.
Every home and business in the UK has the legal right to request a decent, affordable broadband connection, an obligation enforced by the regulator OFCOM. A 2021 inquiry into BT for unreasonable charges was suspended when the company provided assurances, reaffirming this principle. In some rural areas, service is poorer due to geography rather than deprivation.
Strict conditions apply to the withdrawal of energy and water services, requiring a court order and only after attempts have been made to agree on a payment plan. Most suppliers are part of the Energy UK Vulnerability Commitment, which precludes disconnection for households with children under 16 during the winter and all year for households with certain other vulnerabilities.
The nine largest providers of personal bank accounts are legally required to offer basic bank accounts that are fee-free for standard operations. Basic bank account customers can use the same services (e.g., ATM and Post Office counter access) as the financial institution’s other PCA customers.
While rail and bus services are heavily subsidized, the beneficiaries tend to be better off, and ticket costs deter the worst off. A polemical 2021 posting by Greenpeace is critical of the inequalities resulting from transport policies, particularly affecting the poor, the disabled, and ethnic minorities, and highlights the implications of car dependence for sustainability.
Every home and business in the UK has the legal right to request a decent, affordable broadband connection, an obligation enforced by the regulator OFCOM. A 2021 inquiry into BT for unreasonable charges was suspended when the company provided assurances, reaffirming this principle. In some rural areas, service is poorer due to geography rather than deprivation.
Strict conditions apply to the withdrawal of energy and water services, requiring a court order and only after attempts have been made to agree on a payment plan. Most suppliers are part of the Energy UK Vulnerability Commitment, which precludes disconnection for households with children under 16 during the winter and all year for households with certain other vulnerabilities.
The nine largest providers of personal bank accounts are legally required to offer basic bank accounts that are fee-free for standard operations. Basic bank account customers can use the same services (e.g., ATM and Post Office counter access) as the financial institution’s other PCA customers.
While rail and bus services are heavily subsidized, the beneficiaries tend to be better off, and ticket costs deter the worst off. A polemical 2021 posting by Greenpeace is critical of the inequalities resulting from transport policies, particularly affecting the poor, the disabled, and ethnic minorities, and highlights the implications of car dependence for sustainability.
Citations:
https://www.greenpeace.org.uk/news/uk-transport-unfair-car-dependence-social-justice/
https://www.greenpeace.org.uk/news/uk-transport-unfair-car-dependence-social-justice/
Existing essential public services and basic income support are only somewhat aligned with the goal of satisfying basic human needs.
5
Greece
Greece is close to the OECD average in terms of the adequacy of Guaranteed Minimum Income benefits (OECD 2022). However, the country ranks at the bottom of the EU in terms of material and social deprivation and the inability of individuals to keep their homes adequately warm (Eurostat 2022a, 2022b), indicating that current policy measures are insufficient.
Although Greece ranks average among EU countries in reducing the risk of poverty through social transfers (Eurostat 2022c), it is not surprising that Greeks rank low in life satisfaction among OECD countries (World Happiness Report 2023). Greece also scores poorly in life satisfaction as measured by the OECD’s “Better Life” Index (OECD 2023). Additionally, Greece provides minimal financial support or benefits-in-kind for meeting basic human needs in areas such as digital infrastructure and financial services.
While various factors contribute to Greece’s low performance on these subjective indices, evidence suggests that the provision of basic income benefits, intended to meet essential human needs, is significantly lacking.
Although Greece ranks average among EU countries in reducing the risk of poverty through social transfers (Eurostat 2022c), it is not surprising that Greeks rank low in life satisfaction among OECD countries (World Happiness Report 2023). Greece also scores poorly in life satisfaction as measured by the OECD’s “Better Life” Index (OECD 2023). Additionally, Greece provides minimal financial support or benefits-in-kind for meeting basic human needs in areas such as digital infrastructure and financial services.
While various factors contribute to Greece’s low performance on these subjective indices, evidence suggests that the provision of basic income benefits, intended to meet essential human needs, is significantly lacking.
Citations:
Eurostat. 2022a. “Severe Material and Social Deprivation Rate by Age and Sex.” https://ec.europa.eu/eurostat/databrowser/view/ILC_MDSD11/default/table?lang=en
Eurostat. 2022b. “Inability to Keep Home Adequately Warm – EU-SILC Survey.”
https://ec.europa.eu/eurostat/databrowser/view/ILC_MDES01/default/table?lang=en
Eurostat. 2022c. “At-risk-of-poverty Rate by Poverty Threshold, Age and Sex – EU-SILC and ECHP Surveys.”
https://ec.europa.eu/eurostat/databrowser/view/ILC_LI02/default/table?lang=en
OECD. 2022. “Guaranteed Minimum Income Benefits as a Percentage of the Median Disposable Income in the Country.” https://stats.oecd.org/Index.aspx?DataSetCode=IA
World Happiness Report. 2023. “Variable ‘Life Ladder’.” https://worldhappiness.report/ed/2023/#appendices-and-data
https://happiness-report.s3.amazonaw
s.com/2022/Appendix_2_Data_for_Figure_2.1.xls
https://happiness-eport.s3.amazonaws.com/2022/Da
taForTable2.1.xls).
OECD. 2023. “Better Life Index.” https://www.oecdbetterlifeindex.org/topics/life-satisfaction/
Eurostat. 2022a. “Severe Material and Social Deprivation Rate by Age and Sex.” https://ec.europa.eu/eurostat/databrowser/view/ILC_MDSD11/default/table?lang=en
Eurostat. 2022b. “Inability to Keep Home Adequately Warm – EU-SILC Survey.”
https://ec.europa.eu/eurostat/databrowser/view/ILC_MDES01/default/table?lang=en
Eurostat. 2022c. “At-risk-of-poverty Rate by Poverty Threshold, Age and Sex – EU-SILC and ECHP Surveys.”
https://ec.europa.eu/eurostat/databrowser/view/ILC_LI02/default/table?lang=en
OECD. 2022. “Guaranteed Minimum Income Benefits as a Percentage of the Median Disposable Income in the Country.” https://stats.oecd.org/Index.aspx?DataSetCode=IA
World Happiness Report. 2023. “Variable ‘Life Ladder’.” https://worldhappiness.report/ed/2023/#appendices-and-data
https://happiness-report.s3.amazonaw
s.com/2022/Appendix_2_Data_for_Figure_2.1.xls
https://happiness-eport.s3.amazonaws.com/2022/Da
taForTable2.1.xls).
OECD. 2023. “Better Life Index.” https://www.oecdbetterlifeindex.org/topics/life-satisfaction/
Italy
Family networks remain the most important, albeit informal, instrument of social protection in Italy. For example, the high percentage of owner-occupied homes helps many Italians avoid absolute poverty. Housing problems, which would be insurmountable for many young people, are often mitigated by family support rather than public assistance.
However, the poverty rate in Italy is rising. According to ISTAT, the share of people living in absolute poverty increased from 9.1% in 2021 to 9.7% in 2022, with the rate for households rising from 7.7% to 8.3%. These figures represent 5.6 million people living in 2.2 million households.
Minors are disproportionately affected by these poverty conditions, indicating that the system of subsidies and benefits for low-income families is inadequate in addressing the process of impoverishment. This inadequacy stems from structural developments in the economic system, not just high inflation. Despite numerous policy instruments to combat poverty, they are not effective enough to meet the basic needs of the growing number of citizens living in poverty.
However, the poverty rate in Italy is rising. According to ISTAT, the share of people living in absolute poverty increased from 9.1% in 2021 to 9.7% in 2022, with the rate for households rising from 7.7% to 8.3%. These figures represent 5.6 million people living in 2.2 million households.
Minors are disproportionately affected by these poverty conditions, indicating that the system of subsidies and benefits for low-income families is inadequate in addressing the process of impoverishment. This inadequacy stems from structural developments in the economic system, not just high inflation. Despite numerous policy instruments to combat poverty, they are not effective enough to meet the basic needs of the growing number of citizens living in poverty.
Citations:
ISTAT. 2023. “Report povertà. 2022.” https://www.istat.it/it/files//2023/10/REPORT-POVERTA-2022.pdf
ISTAT. 2023. “Report povertà. 2022.” https://www.istat.it/it/files//2023/10/REPORT-POVERTA-2022.pdf
Japan
According to the Public Assistance Act, assistance in cash transfers is calculated by subtracting a household’s final income from the minimum monthly cost of living. The minimum living cost, established for different regions, takes into account categories such as livelihood, housing, occupational, educational, medical, maternity and funeral expenses. One-time allowances are also provided for the purchase of beds, clothes for newborns and electricity costs. Further financial assistance is provided under the Act on the Promotion of Policy on Child Poverty from 2013 and the Law to Assist Those Experiencing Hardship from 2014. The latter law introduced housing security benefits for those who have problems paying rent as well as the temporary provision of lodging to people who do not have a fixed place to live.
Public assistance is barely sufficient to cover the minimum costs of essential services, such as housing, water, sanitation and energy. Poverty in Japan is also alleviated by the collective culture, which obliges family members to take care of those in need.
One key measure to support low-income households has been minimum wage increases. Although formally set by minimum wage commissions, since about the mid-2000s, all governments have welcomed higher rates and minimum wage rates have often grown faster than average wages. Nonetheless, the Japanese minimum wage is still comparatively low and cannot be considered a living wage. This particularly puts non-regular workers at risk. In October 2023, it was raised from JPY 1,072 to JPY 1,113 (€7) per hour for Tokyo in response to higher inflation.
The Kishida government provided several packages of extraordinary financial assistance to low-income households. In March 2023, it was decided that low-income families would receive JPY 30,000 (€190) and an additional JPY 50,000 (€320) would be provided to them on a per-child basis. These one-time benefits, however, barely improve the financial situation of poor families.
Public assistance is barely sufficient to cover the minimum costs of essential services, such as housing, water, sanitation and energy. Poverty in Japan is also alleviated by the collective culture, which obliges family members to take care of those in need.
One key measure to support low-income households has been minimum wage increases. Although formally set by minimum wage commissions, since about the mid-2000s, all governments have welcomed higher rates and minimum wage rates have often grown faster than average wages. Nonetheless, the Japanese minimum wage is still comparatively low and cannot be considered a living wage. This particularly puts non-regular workers at risk. In October 2023, it was raised from JPY 1,072 to JPY 1,113 (€7) per hour for Tokyo in response to higher inflation.
The Kishida government provided several packages of extraordinary financial assistance to low-income households. In March 2023, it was decided that low-income families would receive JPY 30,000 (€190) and an additional JPY 50,000 (€320) would be provided to them on a per-child basis. These one-time benefits, however, barely improve the financial situation of poor families.
Citations:
An, Zhiyong, and Kohei Asao. 2023. “Options to Strengthen the Social Safety Net in Japan.” International Monetary Fund Selected Papers, May.
“Act on the Promotion of Policy on Child Poverty.” 26 June 2013. https://www.japaneselawtranslation.go.jp/en/laws/view/3619/en
Kyodo News. 2023. “Japan mulls support for low-income earners in new economic package.” https://english.kyodonews.net/news/2023/09/6a64d712fbb6-japan-pm-urges-ministers-to-use-all-tools-in-new-economic-package.html
“Minimum Wage Increased in Japan from 01 October 2023 – October 02, 2023.” 2023. https://wageindicator.org/salary/minimum-wage/minimum-wages-news/2023/minimum-wage-increased-in-japan-from-01-october-2023-october-02-2023
National Institute of Population and Social Security Research. 2014. “Social Security in Japan 2014.” https://www.ipss.go.jp/s-info/e/ssj2014/pdf/SSJ2014.pdf
Public Assistance Act. 1950. https://www.japaneselawtranslation.go.jp/en/laws/view/24/en#je_ch1at2
“Seikatsu Konkyûsha Shiritsu Shien-hô” [Law to Assist those Experiencing Hardship]. 2013. https://elaws.e-gov.go.jp/document?lawid=425AC0000000105
An, Zhiyong, and Kohei Asao. 2023. “Options to Strengthen the Social Safety Net in Japan.” International Monetary Fund Selected Papers, May.
“Act on the Promotion of Policy on Child Poverty.” 26 June 2013. https://www.japaneselawtranslation.go.jp/en/laws/view/3619/en
Kyodo News. 2023. “Japan mulls support for low-income earners in new economic package.” https://english.kyodonews.net/news/2023/09/6a64d712fbb6-japan-pm-urges-ministers-to-use-all-tools-in-new-economic-package.html
“Minimum Wage Increased in Japan from 01 October 2023 – October 02, 2023.” 2023. https://wageindicator.org/salary/minimum-wage/minimum-wages-news/2023/minimum-wage-increased-in-japan-from-01-october-2023-october-02-2023
National Institute of Population and Social Security Research. 2014. “Social Security in Japan 2014.” https://www.ipss.go.jp/s-info/e/ssj2014/pdf/SSJ2014.pdf
Public Assistance Act. 1950. https://www.japaneselawtranslation.go.jp/en/laws/view/24/en#je_ch1at2
“Seikatsu Konkyûsha Shiritsu Shien-hô” [Law to Assist those Experiencing Hardship]. 2013. https://elaws.e-gov.go.jp/document?lawid=425AC0000000105
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Hungary
Hungary has several programs targeting the quality of essential services, but most are underfinanced and do not guarantee safe living conditions. Regarding access to water facilities, Hungary ranks 23rd out of 27 among EU countries, and Hungarians have to dedicate a large share of their income to gaining access to such services. A government program exists to support people in poverty through price reductions, such as price caps on utilities, which the government has communicated as one of its main achievements and a demonstration of its sovereignty. Regarding energy supply, vulnerability in Hungary is comparably high due to a strong reliance on Russian imports. As Hungarians spend much of their income on energy, the Russian invasion of Ukraine and rising prices have had a significant impact. Some programs to counter this exist, such as aid for buying firewood. Still, many measures applied by other countries are not used in Hungary. The number of people at risk of poverty in Hungary who report they are unable to use public transport is the highest in the EU (European Commission 2023a: 34). The share of Hungarians unable to access the internet is also high in the EU, surpassed only in Bulgaria and Romania. Hungary’s median expenditure on digital communications across households is the EU’s highest (European Commission 2023: 44). To address this, Hungary supports affected individuals with reduced tariffs.
Additionally, informational support is provided. Reform and increased funding are needed for special services for Hungarians who are in or threatened by poverty. One problem is that many programs rely on European funds, and freezing such funds for Hungary poses significant challenges for the government. Regional disparities in providing basic services are also significant, with GDP per capita in Budapest being three times higher than in the country’s four least developed NUTS-2 regions (European Commission 2023b: 6).
Additionally, informational support is provided. Reform and increased funding are needed for special services for Hungarians who are in or threatened by poverty. One problem is that many programs rely on European funds, and freezing such funds for Hungary poses significant challenges for the government. Regional disparities in providing basic services are also significant, with GDP per capita in Budapest being three times higher than in the country’s four least developed NUTS-2 regions (European Commission 2023b: 6).
Citations:
European Commission. 2023a. “Employment, Social Affairs & Inclusion.” https://ec.europa.eu/social/main.jsp?langId=en&catId=89&furtherNews=yes&newsId=10595&pk_source=newsletter&pk_medium=email&pk_campaign=eu_social_newsletter
European Commission. 2023. “2023 Country Report - Hungary - Economic and Financial Affairs Secretariat-General Recovery and Resilience Task Force.” INSTITUTIONAL PAPER 241 | JUNE 2023. https://economy-finance.ec.europa.eu/system/files/2023-06/ip241_en.pdf
European Commission. 2023a. “Employment, Social Affairs & Inclusion.” https://ec.europa.eu/social/main.jsp?langId=en&catId=89&furtherNews=yes&newsId=10595&pk_source=newsletter&pk_medium=email&pk_campaign=eu_social_newsletter
European Commission. 2023. “2023 Country Report - Hungary - Economic and Financial Affairs Secretariat-General Recovery and Resilience Task Force.” INSTITUTIONAL PAPER 241 | JUNE 2023. https://economy-finance.ec.europa.eu/system/files/2023-06/ip241_en.pdf
Slovakia
The primary social cash benefits in Slovakia (Law 417/2013 on emergency support) as of January 1, 2023, were as follows:
A general emergency benefit (with a minimum level of €84.90 monthly for a single person and a maximum level of €297.50 for a family with more than four children).
Protective allowance (€86.80 monthly).
Activation allowance (€86.80 monthly).
Child allowance (€23.70 monthly).
Housing allowance (with a minimum level of €95.20 monthly for a single person and a maximum level of €291.90 for a family with more than four children).
At the same time, the “subsistence minimum” was defined as €268.88 monthly for the first adult in the family, €187.57 monthly for the second adult in the family, and €122.77 monthly for each child.
The level of these benefits is flexible and is adjusted to reflect the “subsistence minimum” and other factors. However, it is not possible to state that the basic income benefits in Slovakia enable the fulfillment of basic human needs, especially for families in Roma communities with both parents unemployed and many children in one family (Kahanec et al., 2020). Despite some existing subsidies, the policies and services do not ensure that the level of cash transfers, subsidies, earmarked financial support, or benefits in-kind meet basic human needs in housing, water and sanitation, energy, and public transport. Digital infrastructure and financial services are not subsidized, which means there is no free internet access.
A general emergency benefit (with a minimum level of €84.90 monthly for a single person and a maximum level of €297.50 for a family with more than four children).
Protective allowance (€86.80 monthly).
Activation allowance (€86.80 monthly).
Child allowance (€23.70 monthly).
Housing allowance (with a minimum level of €95.20 monthly for a single person and a maximum level of €291.90 for a family with more than four children).
At the same time, the “subsistence minimum” was defined as €268.88 monthly for the first adult in the family, €187.57 monthly for the second adult in the family, and €122.77 monthly for each child.
The level of these benefits is flexible and is adjusted to reflect the “subsistence minimum” and other factors. However, it is not possible to state that the basic income benefits in Slovakia enable the fulfillment of basic human needs, especially for families in Roma communities with both parents unemployed and many children in one family (Kahanec et al., 2020). Despite some existing subsidies, the policies and services do not ensure that the level of cash transfers, subsidies, earmarked financial support, or benefits in-kind meet basic human needs in housing, water and sanitation, energy, and public transport. Digital infrastructure and financial services are not subsidized, which means there is no free internet access.
Citations:
Zákon č. 417/2013 o pomoci v hmotnej núdzi. 2013. https://www.slov-lex.sk/pravne-predpisy/SK/ZZ/2013/417/
Kahanec, M., Kováčová, L., Poláčková, Z., and Sedláková, M. 2020. The social and employment situation of Roma communities in Slovakia. Brussels: European Parliament.
Zákon č. 417/2013 o pomoci v hmotnej núdzi. 2013. https://www.slov-lex.sk/pravne-predpisy/SK/ZZ/2013/417/
Kahanec, M., Kováčová, L., Poláčková, Z., and Sedláková, M. 2020. The social and employment situation of Roma communities in Slovakia. Brussels: European Parliament.
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Israel
The basic income is insufficient to fulfill basic needs. It ranges from ILS 1,569 per month to ILS 4,990 per month. The current average salary is ILS 12,492 per month and the minimum wage is ILS 5,880 per month. The 2023 Alternative Poverty Report argued that the minimum cost of living for a family is ILS 12,900 per month.
Rent assistance for a family with three children, which is eligible for the basic income, is ILS 1,170 per month. The average rent for a two-bedroom apartment in the city center of Tel Aviv is about ILS 4,000 per month.
“Families are eligible for a 50% discount on their electricity bill. They are also eligible for a 50% discount on public transportation. There are no discounts or reduced rates for digital services or financial services.”
High poverty rates among the country’s Arab and ultraorthodox populations reduce public support for expanding assistance to poor families.
Rent assistance for a family with three children, which is eligible for the basic income, is ILS 1,170 per month. The average rent for a two-bedroom apartment in the city center of Tel Aviv is about ILS 4,000 per month.
“Families are eligible for a 50% discount on their electricity bill. They are also eligible for a 50% discount on public transportation. There are no discounts or reduced rates for digital services or financial services.”
High poverty rates among the country’s Arab and ultraorthodox populations reduce public support for expanding assistance to poor families.
USA
In general, the United States has an underdeveloped welfare state, and the quality of its public services does not have a good reputation. Public transport, for example, is generally quite cheap, but it is underfunded, often inconvenient, and in some places, almost nonexistent.
The adequacy of public services varies significantly based on geography and subnational policies. Gaps in coverage exist throughout the country. Local governments differ widely in their ability to fund high-quality services. Some localities benefit from a wealthy tax base, small populations, or low need. These areas often enjoy excellent public services, including top-notch state schools, public libraries, and community infrastructure. Other parts of the country, however, may have a lower tax base and/or higher-need populations, resulting in abysmal quality of public services.
The Biden administration invested heavily in infrastructure, particularly in renewable energy, highway, and digital infrastructure, in an effort to modernize public infrastructure.
The adequacy of public services varies significantly based on geography and subnational policies. Gaps in coverage exist throughout the country. Local governments differ widely in their ability to fund high-quality services. Some localities benefit from a wealthy tax base, small populations, or low need. These areas often enjoy excellent public services, including top-notch state schools, public libraries, and community infrastructure. Other parts of the country, however, may have a lower tax base and/or higher-need populations, resulting in abysmal quality of public services.
The Biden administration invested heavily in infrastructure, particularly in renewable energy, highway, and digital infrastructure, in an effort to modernize public infrastructure.
Existing essential public services and basic income support are not at all aligned with the goal of satisfying basic human needs.
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