European Parliament proposes new law to modernize and strengthen minimum income schemes

MEPs have proposed a new law to tackle the current cost of living crisis to modernize and strengthen minimum income schemes in member states.

On Wednesday, the plenary passed a resolution defending the EU minimum income directive to make minimum income schemes more affordable and effective. It will also ensure the social reintegration of workers who have left the labor market.

EU countries should regularly evaluate their national schemes and update them if needed, ensuring an adequate level of support that reflects the national at-risk-of-poverty (AROPE) threshold, to establish a social safety net guaranteeing a minimum standard of living.

MEPs also want to raise the awareness of these schemes and make them more accessible, in particular for disadvantaged groups such as homeless people. They propose measures to address widespread issues in EU countries such as the lack of take-up of these schemes and the digital divide.

The text was adopted with 336 votes in favour, 174 against and 121 abstentions.

Council adopts a Recommendation on an adequate minimum income

Background

On 28 September 2022, the European Commission proposed a Council Recommendation on adequate minimum income ensuring active inclusion. It sets out how EU countries can modernise their minimum income schemes to make them more effective and to reduce the number of people at risk of poverty and social exclusion in the EU.

More information

European Parliament