ASSISTANCE SYSTEM IN ROMANIA

Transcription

1 THE REFORM OF SOCIAL ASSISTANCE SYSTEM IN ROMANIA PhD LĂCRĂMIOARA CORCHEȘ -General Director General Directorate for Social Assistance/ Ministry of Labor, Family, Social Protection and Elderly of Romania

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3 OUTLINE 1) COUNTRY CONTEXT 2) REFORMING THE SOCIAL ASSISTANCE SYSTEM 3) MINIMUM SOCIAL INSERTION INCOME (MSII)

4 Country Context Population (2012) 20 million GDP per capita (2012) EUR Government revenues (% of GDP, 2012) 33 Government spending (% of GDP, 2012) 35.5 Of which Social protection spending (% of GDP) 14.3 Of which Pensions 11.0 Unemployment Benefits and ALMPs 0.4 Social assistance and services 2.3 4

5 Pensioners Coverage of Social Protection System Thousands (2013) Total=5.246 (abt 26% of population) Old age Invalidity 729 Survivorship 539 Farmers 564 Social assistance (SSN) Child allowance (categorical) 3800 Child raising benefit 160 Family benefit (means-tested) Heating benefit (seasonal) Guaranteed minimum income 260 (families) 1000 (families) 225 (families) Disability allowance 670 5

6 Poverty and Inequality Indicators Romania ( ) ,4 22,4 22,2 22,6 21,1 19,9 18,2 18,9 17,5 17,2 17,9 17,6 16,2 19, ,3 49,3 49,2 47, At-risk of-poverty rate At-risk of-poverty rate anchored in 2008 In-work at-risk-of-poverty rate Material deprivation rate , ,3 33,2 33, Gini coefficient

7 CZ NL DK SK FI SI HU FR SE AT CY BE MT LU DE UK EU27 EU28 PL EE PT LT IT LV HR BG ES RO EL 9,6 10,1 13,1 13,2 13,2 13,5 14,0 14,1 14,2 14,4 14,7 14,8 15,0 15,1 16,1 16,2 16,9 17,0 17,1 17,5 17,9 18,6 19,4 19,4 20,5 21,2 22,2 22,6 23,1 25 People at risk of poverty after social transfers (AROP) % of total population - relative poverty rate, Source: EUROSTAT, January 8, 2014

8 CHILDREN: Poverty and Material Deprivation Households with dependent children: 29.2% RO (highest) 19 % EU Children are severely deprived: 37,9% RO (second highest) 18 EU countries < 10%

9 3,8 4,5 4,5 4,6 5,3 5,6 5,7 6,1 6,2 6,5 6,6 7,4 7,6 7,8 7,9 8,0 8,1 8,3 8,6 9,0 [VALUE] 9,2 9,8 10,2 10,4 11,0 12,3 15,1 19,1 25 In-work at-risk-of-poverty rate (2012) % of total employed, persons aged Source: EUROSTAT, February 5, 2014

10 The Reform Why do we need it? Is the social assistance system: ADEQUATE? for what needs is designed? COVERING the right beneficiaries? CREATING dependency or not? Level of THRESHOLDS 10

11 BENEFITS SITUATION UNTIL Legal papers and benefits The REFORM MEASURES TO PREVENT POVERTZY AND THE RISK OF SOCIAL EXCLUSION (social assistance schemes) FAMILY AND CHILD SOCIAL ASSISTANCE (family benefits) SOCIAL ASSISTANCE FOR PERSONS WITH SPECIAL NEEDS (disability and long term care) OTHER TYPES OF AIDS ABD FACILITIES Minimul Insertion Income state child allowance foster care allowance indemnities, incentives and child raising aids food monthly allowance for HIV/AIDS indemnities for persons with special needs refugee persons aid refugee persons aid emergency aid facilities

12 The Reform What we want to do? Introducing the Reference Social Indicator = connector to reference budgets Reducing error and fraud Targeting the social benefits for the poors Integrating measures (packages of benefits +services); Simplifying administration: Single point of submission & single application form

13 The Reform Steps to be Undertaken 2010: Strategy for the Social Assistance Reform : new Social Assistance Law & secondary legislation 2014: Consolidating 3 programs into one program for tackle poverty : Developing Management Information System

14 Notes: Estimates calculated on 2012 HBS Quintiles based on income net of all social assistance per adult equivalent Performance of means-tested programs (2010/2016) Targeting Coverage Total social assistance of which Guaranteed Minimum Income 1 st quintile 35.7% (40%) Population 1 st quintile 66.2% 80.5% (82.5%) 80.5% 3.7% 14.2% Family allowance 56% 6.1% 18.6% Heating benefits 36.4% 25% 8.3%

15 3500 The evolution of the main social benefits Number of beneficiaries (thousands) Heating benefits Family allowances Social aid (GMI) Amounts (Mln RON) Heating benefits Social aid (GMI) Family allowances 15

16 Steps CCT for low INCOME HH Programs COMMUNITY SERVICE WORK for work-able beneficiaries: - proportional with the level of the benefit; - community actions or other works for local benefit - on a monthly basis; SCHOOL ATTENDANCE FOR CHILDREN - benefit is reduced or discontinued if child does not attend school regularly FA; INCENTIVES TO RETURN TO THE LABOR MARKET for work-able beneficiaries - increasing the amount of benefit with 15% if one person from HH has a job GMI; - incentives for employees hiring old aged people and people over 45 years old; 16

17 Minimum Social Insertion Income Program description: GMI + FA + HB = IMI GMI FA IMI =about30% poorest HB GMI=abt families -33 EUR FA=abt families 120 EUR HB=abt families 140/180 EUR 17

18 Minimum Social Insertion Income: Short-term Plans Will Consolidate all means-tested programs Will Move from the pure Guaranteed Minimum Income formula, to 50% Marginal Tax Rate on Earnings Will Expand from the poorest 5% to the poorest 20-30% of the population Will Expand the set of ALMPs for the poor and tailor them to EACH sub-group Will Include the conditionality for children attending school 18

19 CONCLUSIONS Fighting against poverty and social exclusion continues to be a national priority EU 2020 targets of poverty and employment Implementation of the strategies for the social inclusion of disadvantaged people (poors, children, disabled, elderly, roma) = integrated approach Avoiding creation of dependence on receiving social benefits and using ALMP 19

20 THANK YOU FOR YOUR ATTENTION!