The Austrian meanstested minimum income Bedarfsorientierte Mindestsicherung BMS
The Austrian means-tested minimum income „Bedarfsorientierte Mindestsicherung“ (BMS) Martina Kargl (EAPN AUSTRIA / Caritas Vienna) EMIN-Conference BUDAPEST September 2014 KARGL: The Austrian minimum income „Bedarfsorientierte Mindestsicherung“ EMIN-Conference, Budapest, 18. 9. 2014 1
means-tested minimum incomes & the Austrian welfare state 1 st pillar 2 nd pillar Federal state Laender Public social insurance system (contributory) Universal Transfers (noncontributory) Needs-tested transfers – social assistance (noncontributory) accident Minimum income provided ? x health x unemployment x age Family benefits, long-term-care benefit, etc. „Bedarfsorientierte Mindestsicherung“ (BMS) „Ausgleichszulage“ 2014: 814 € (12 x year, single person) („compensatory allowance“) x 2014: 814 € (14 x year, single person) KARGL: The Austrian minimum income „Bedarfsorientierte Mindestsicherung“ EMIN-Conference, Budapest, 18. 9. 2014 2
Which have been the supportive arguments and, on the other hand, obstacles for the introduction of MIS in Austria? What about the political context? KARGL: The Austrian minimum income „Bedarfsorientierte Mindestsicherung“ EMIN-Conference, Budapest, 18. 9. 2014
INTRODUCTION? NOT a new cash benefit, but reform of an already existing one !!! Sozialhilfe social assistance, since the 1970 ies (dating back to 19 th centuries „poor relief“) Bedarfsorientierte Mindestsicherung since 2010 Some modernisation & improvement, but also deterioration and unsolved problems. formative elements are still the same! KARGL: The Austrian minimum income „Bedarfsorientierte Mindestsicherung“ EMIN-Conference, Budapest, 18. 9. 2014 4
SUPPORTIVE ARGUMENTS n No need to – just „reform“ introduce a new cash benefit n Lobbying by EAPN Austria since the 1990 s – minimum income as an important topic in the public debate about poverty Ø BUT: NGOs were excluded from the negotiations between federal state & Laender (2006 -2010), rare information about ongoing negotiations n Federal Government: Ø Acknowledgement of changing social realities (rise of unemployment, atypical work, working poor, single-parents, …) and the need to reform the social system to avoid poverty by the federal government Ø Will to introduce costy improvements in the 1 st pillar of the austrian welfare state (unemployment-insurance, health-insurance) to reduce the burden on the 2 nd pillar – precondition for the Laender to agree to any reform! n Fight against poverty: main topic in the government programme 2006 & strong (personal) support by the minister of social affairs KARGL: The Austrian minimum income „Bedarfsorientierte Mindestsicherung“ EMIN-Conference, Budapest, 18. 9. 2014 5
OBSTACLES n Austria is a federal state, constitution rules: „poor relief“ falls into the legislative competence of the „Laender“ Ø Laender refused a federal law and real harmonisation: „Who pays the piper calls the tune“ Ø Different interests of the Laender (f. e. : Vienna Kärnten) Ø BMS is based on a treaty between federal state and the laender, not on a law. Treaty only states minimumstandards. Ø Still 9 different laws, which means: 9 different standards concerning the amount of the BMS, rights & duties KARGL: The Austrian minimum income „Bedarfsorientierte Mindestsicherung“ EMIN-Conference, Budapest, 18. 9. 2014 6
n Federal Government = Coalition Government of Social. Democrats and Conservative Party Conflicting interests & ideologies reform took years! Ø Conflicting interests not only between federal state & Laender, but also within the federal government and between relevant ministries KARGL: The Austrian minimum income „Bedarfsorientierte Mindestsicherung“ EMIN-Conference, Budapest, 18. 9. 2014 7
Minimum income & the obligation to work KARGL: The Austrian minimum income „Bedarfsorientierte Mindestsicherung“ EMIN-Conference, Budapest, 18. 9. 2014 8
BMS & WORKFARE n less-elegibility-principle: There is no statutory minimum wage in Austria n 10% of the employees working full time earn less than 1. 199 € net per month (twelfths of annual earnings, 2012) n BMS is NOT a unconditional basic income duty to work! Otherweise: reduction/cancellation of the benefit n BMS serves minimum income not only for people able to work but also for … … disabled persons = people with serious impairment, usually not able to work … children (27%, incl. disabled persons) … people in retirement age (8%) KARGL: The Austrian minimum income „Bedarfsorientierte Mindestsicherung“ EMIN-Conference, Budapest, 18. 9. 2014 9
n provisions on reasonable entitlement are those of the unemployment insurance • Offered job must be based on an employment relationship • Payment must fit collective agreement • No occupational protection after 100 days of unemployment / No safeguarding of payment after 120 days • People who have to care for children up to the age of 10 years: at least 16/20 hours per week • Duty to participate in active labour market measures KARGL: The Austrian minimum income „Bedarfsorientierte Mindestsicherung“ EMIN-Conference, Budapest, 18. 9. 2014 10
n Exemptions from the duty to use one‘s workforce do exist • People in retirement age (men: >65 years, women: >60 years) • People who have to care for children up to the age of 3 years who can‘t work because there are no childcare-facilities • People who care for family members who have a proofed need for intense long term care • People who care for dying /terminally ill family members • People who started a vocational training / high school before the age of 18 KARGL: The Austrian minimum income „Bedarfsorientierte Mindestsicherung“ EMIN-Conference, Budapest, 18. 9. 2014 11
n Sanctions Ø Benefits for living requirements: may be reduced up to 100% Ø Benefits for housing: must not be reduced! Ø benefits for family members (children, partners): must not be reduced! n mutual assistance among BMS-authority and the public employment service (AMS), data interfaces Ø People sanctioned by AMS won‘t receive BMS Ø People not willing to cooperate in active labour measures won‘t receive BMS KARGL: The Austrian minimum income „Bedarfsorientierte Mindestsicherung“ EMIN-Conference, Budapest, 18. 9. 2014 12
n Problem: high unemployment predatory competition on the labour-market & disappearance of low-skilled jobs Many People judged to be „employable“ are not attractive for employers (health problems; low, outdated or missing skills; care responsibilities; indeptedness; old age …) In many cases: No longtime-integration into the labourmarket, revolving-door-effekts German example shows: „zero-tolerance“ workfare policy leads to a growing working-poor-sector and spread in wages, growing social inequality & weak domestic demand Not the missing will to work is the problem, but the lack of adequate work! KARGL: The Austrian minimum income „Bedarfsorientierte Mindestsicherung“ EMIN-Conference, Budapest, 18. 9. 2014 13
BMS & ADEQUACY KARGL: The Austrian minimum income „Bedarfsorientierte Mindestsicherung“ EMIN-Conference, Budapest, 18. 9. 2014 14
n Amount of entitlement in the BMS is defined by the amout of entitlement in the Ausgleichszulage in the pension system n BUT: arbitrarily set by political system, historically evolved since 1950 ies – political poverty lines in Austria are not based on a basket of goods / reference budget ! n No political consensus that the BMS should at least be as high as the minimum income within the pensionsystem (striking argument: otherwise weak incentives for taking up a job) Ausgleichszulage (pension system): 2014: 814 x 14 = 11. 396 € / year BMS: 2014: 814 x 12 = 9. 768 € / year KARGL: The Austrian minimum income „Bedarfsorientierte Mindestsicherung“ EMIN-Conference, Budapest, 18. 9. 2014 15
Reference budgets for Austria www. referencebudgets. eu/budgets/ n Assumtion: Rented flat n Periodic expenditures: housing & related expenditures, public transport, phone & internet, household -insurance, school-related costs, child-care-costs (kindergarden etc. ) n Irregular expenditures: clothes & shoes, furniture & garden, health-related costs n Household expenditures: Healthy nutrition, cleaning & body care products, child-needs (trips, handicrafting etc) n Other expenditures Pocket money for children, budget for social und cultural participation (2013: single person: 61 €/month) n NOT included: costs for … car and car-related expenditures, pets, leisure-time related exenditures (hobbies, going out, holidays), alcohol and cigarettes KARGL: The Austrian minimum income „Bedarfsorientierte Mindestsicherung“ EMIN-Conference, Budapest, 18. 9. 2014 16
2013 Single Person (25 -51 years) Couple (25 -51 years) Single parent + 1 child (8 years) Single parent + 2 children Couple + 1 child (8 years) Couple + 2 Couple + 3 children (7+14 years) 7+9+14 years) (7+14 years) BMS (additional family benefits included) Reference budgets Difference BMS & reference budgets Austrian EU-SILC Poverty line 2012 (!) Difference BMS & EU-SILC poverty line 795 € 1. 192 € 1. 109 € 1. 454 € 1. 507 € 1. 852 € 2. 201 € 1. 301 € 1. 940 € 1. 901 € 2. 657 € 2. 567 € 3. 146 € 3. 594 € 506 € 748 € 792 € 1. 203 € 1. 060 € 1. 294 € 1. 393 € 1. 090 € 1. 635 € 1. 417 € 1. 962 € 2. 507 € 2. 834 € 295 € 443 € 308 € 508 € 455 € 633 € KARGL: The Austrian minimum income „Bedarfsorientierte Mindestsicherung“ EMIN-Conference, Budapest, 18. 9. 2014 17
n Most obvious problem in the context of adequacy: inadequate means for housing General Rule: • 75% of the benefit person: living requirements (2014: 611 €) • 25% of the benefit person: housing (2014: 204 €) • Health insurance for people previously not health insured Rented flats, Price per m 2 in € (+ 20%) Rent incl. running costs, excl. energy and heating Ø Österreich Burgenland Kärnten Niederösterreich Oberösterreich Salzburg Steiermark Tirol Vorarlberg Wien 1. Quartal 2014 7, 08 4, 99 5, 95 6, 46 6, 85 8, 83 6, 88 7, 87 8, 16 7, 17 Source: www. statistik. at/web_de/statistiken/wohnen_und_gebaeude/wohnungsaufwand/mietwohnungen/023048. html some Laender offer additional benefits for housing … Ø but not all of them Ø Means for housing nontheless often not adequate KARGL: The Austrian minimum income „Bedarfsorientierte Mindestsicherung“ EMIN-Conference, Budapest, 18. 9. 2014 18
ELIGIBILITY CRITERIA KARGL: The Austrian minimum income „Bedarfsorientierte Mindestsicherung“ EMIN-Conference, Budapest, 18. 9. 2014 19
n Citizenship / residence permit • Austrian citizenship • EU-citizens: requested residence permit: „Anmeldebescheinigung“ status of worker or proof of sufficient means of living & health insurance • Third-country nationals: permanent residence permit Not for tourists (less than 3 month stay in Austria)! Not for poverty-driven migrants! Same conditions for shelters for the homeless! (at least in Vienna) KARGL: The Austrian minimum income „Bedarfsorientierte Mindestsicherung“ EMIN-Conference, Budapest, 18. 9. 2014 20
Subsidiarity n Duty to work n compulsory realisation of assets/ safings NEW: • perpetual „grace-property“: ~ 4. 000 € • „grace period“ for dwellings owned before securing in the land register: 6 months important reason for non-take up n Claims to maintenance (under family law) have to be realised • Separated, but married couples – partners (not married) in the same household are treated like spouses. NOT: if unreasonable, f. e. : domestic violence – proof! • If loss of “self-preservation capacity“ (jur): Parents of adult children and vice versa are obliged to care for the person in need important reason for non-take up KARGL: The Austrian minimum income „Bedarfsorientierte Mindestsicherung“ EMIN-Conference, Budapest, 18. 9. 2014 21
Who benefits from the BMS? KARGL: The Austrian minimum income „Bedarfsorientierte Mindestsicherung“ EMIN-Conference, Budapest, 18. 9. 2014 22
Recipients of Sozialhilfe (till 2010) and BMS (since 2010) KARGL: The Austrian minimum income „Bedarfsorientierte Mindestsicherung“ EMIN-Conference, Budapest, 18. 9. 2014 23
(Non)-take-up NOTE: not everyone living below EU-SILC poverty-line is eligible to BMS! NOTE: figures based on a sample, therefore statistical fluctuation! inhabitants EU-SILC 2012 poors BMS-Recipients 2012 EU-SILC poors in % of inhabitants Percentages BMS recipients in % of EU-SILC poors BMS recipients in % of inhabitants Burgenland 286. 143 16. 000 3. 023 6 (? ? ? ) 19 1, 1 Kärnten 555. 751 83. 000 4. 979 15 6 0, 9 NÖ 1. 616. 161 166. 000 18. 966 10 11 1, 2 OÖ 1. 416. 387 145. 000 14. 214 10 10 1, 0 530. 527 53. 000 12. 039 10 23 2, 3 1. 209. 466 156. 000 19. 552 13 13 1, 6 Tirol 712. 849 92. 000 13. 465 13 15 1, 9 Vorarlberg 371. 697 65. 000 8. 583 17 13 2, 3 Wien 1. 727. 330 426. 000 126. 520 25 30 7, 3 AUSTRIA 8. 426. 311 1. 201. 000 221. 341 14 18 2, 6 Salzburg Steiermark KARGL: The Austrian minimum income „Bedarfsorientierte Mindestsicherung“ EMIN-Conference, Budapest, 18. 9. 2014 24
BMS-Recipients in Austria 2012 KARGL: The Austrian minimum income „Bedarfsorientierte Mindestsicherung“ EMIN-Conference, Budapest, 18. 9. 2014 25
BMS-recipients in Austria 2012 KARGL: The Austrian minimum income „Bedarfsorientierte Mindestsicherung“ EMIN-Conference, Budapest, 18. 9. 2014 26
Average duration of BMS-benefit KARGL: The Austrian minimum income „Bedarfsorientierte Mindestsicherung“ EMIN-Conference, Budapest, 18. 9. 2014 27
BMS-recipients according to type of benefit, VIENNA, 2013 KARGL: The Austrian minimum income „Bedarfsorientierte Mindestsicherung“ EMIN-Conference, Budapest, 18. 9. 2014 28
COSTS n BMS-spending 2012: ~ 540 Mio € (66% = Vienna!), n Overall social spending in Austria 2012: 92, 7 Billion € (social expenditure share: 30, 4% of GDP) BMS-spending = 0, 6% of overall social spending! KARGL: The Austrian minimum income „Bedarfsorientierte Mindestsicherung“ EMIN-Conference, Budapest, 18. 9. 2014 29
Special problems n not sufficiently determinated laws leaves too much discretionary power to the officials n Not only 9 different laws, but also inconsistent law enforcement by the district-offices due to not sufficiently determinated laws & poorly trained officals diverging standards! n Financing: to a large part responsibility of the municipalities – the poorer the municipality is, the more costs it has to bear outdated financing-structure that incourages unlawful law-enforcement and wrong information n Insufficiant (legal) counselling-centres & information offer, both in quantity & quality difficult for entitled persons to get to know about their rights & to enforce them KARGL: The Austrian minimum income „Bedarfsorientierte Mindestsicherung“ EMIN-Conference, Budapest, 18. 9. 2014 30
Activities of EAPN Austria concerning BMS Following the invitations by politicians and officals for dialog, but also activities on our own behalf See: www. armutskonferenz. at Mindestsicherung n Carrying out research and publishing it • 2008: Survey among 121 social NGOs concerning BMSlaw-enforcement in Austria (showing that there is unlawful & non-uniform law-inforcement) • 2012: comparative study of the 9 new BMS-laws (showing that there are vaste differences & a lot of remaining problems) n 2014: „lemon-award“: start of a new series concerning good & bad practice in BMS-law and law-enforcement Making problems public! Media-interest! KARGL: The Austrian minimum income „Bedarfsorientierte Mindestsicherung“ EMIN-Conference, Budapest, 18. 9. 2014 31
Thank you for your attention! www. armutskonferenz. at Contact: office@armutskonferenz. at martina. kargl@caritas-wien. at KARGL: The Austrian minimum income „Bedarfsorientierte Mindestsicherung“ EMIN-Conference, Budapest, 18. 9. 2014 32
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