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The Government will raise the Minimum Living Income and expand it to more families with children before the end of 2021

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The Recovery, Transformation and Resilience Plan prepared by the Government addresses the future of practically all state policies. Among them, the Minimum Living Income (IMV). As indicated in the file or component corresponding to this benefit, created in 2020 during the heat of the pandemic, before the end of 2021 Measures will be taken to increase their access and, even, the amount for families with children at risk of exclusion.

“In the short term (late 2021) guaranteed income thresholds will be improved of the Minimum Living Income (IMV) for households with dependent minors “, says component 22 of the Recovery Plan, the one dedicated to the ‘Shock Plan for the economy of care and reinforcement of inclusion policies’.

The Government’s intention with this measure is, among others, put an end to child poverty. To do this, access to the IMV will be increased raising the maximum income thresholds that allow it to be received. This will have, as a secondary effect, that the amounts already received by IMV beneficiaries will rise.

José Luis Escrivá, Minister of Inclusion, Social Security and Migration.

It should be remembered that the IMV is a benefit that seeks to supplement the income of the most vulnerable households or coexistence units. A fictitious example provides a better understanding of this government measure.

To this day, the IMV for a living unit consisting of two adults and a minor is at 751.89 euros per month. If it were raised, let’s say, to 850 euros, not only would more households have access to the benefit, but those who received this aid would see it increased until reaching the minimum income of 850 euros.

However, this example is totally artificial. There are still no figures for the increase and improvement of the guaranteed income thresholds. Sources from the Ministry of Inclusion, Social Security and Migrations explain that the measure is in study and simulations are being carried out with all the income thresholds to propose and execute said improvements.

It must be remembered that José Luis Escrivá, Minister of Inclusion, Social Security and Migration, deck tweak the rent thresholds to improve access to the IMV.

3,000 million a year

This feature, which has a annual endowment of about 3,000 million euros, is intended to reach about 850,000 households, but so far only 210,000 cases have been approved. Have been rejected seven out of ten requests, in most cases due to income and equity criteria.

It is not the only improvement that is proposed for IMV recipients. The Transformation Plan also puts on the table that the tax deductions for dependent minors are reviewed and reinforced in the new Family Protection Law that the Government also proposes to Brussels.

The Executive also believes that the IMV is the basis for developing a new model of non-contributory State benefits. For the second half of 2022, it promises a reorganization, simplification and redesign of the same, with a “comprehensive vision and to improve coverage and execution levels.”

In parallel, in another file of the Recovery Plan, number 23 (which is the labor market), the Executive proposes one of the most anticipated IMV ‘accompanying’ measures: labor inclusion itineraries.

Labor inclusion

However, what the Government raises in the Recovery Plan is the launch of several pilot projects in 2022 and 2023. 298 million euros have been allocated from European funds for it.

For the next year, eight bilateral agreements are expected to be signed of collaboration with relevant agents for social inclusion, which will include subnational public administrations and / or the Third Sector of Social Action. For two years from now, ten agreements of this type will be signed.

At the beginning of the year 2024, a evaluation of the coverage, effectiveness and success of the IMV, including recommendations to increase the level of application and improve the effectiveness of social inclusion policies.

The Government clarifies that the aforementioned funds will be managed through agreements with autonomous communities and cities, local entities, as well as entities of the Third Sector of Social Action.

The plans for the IMV, in this sense, they do not forget the private sector. “Taking into account the scale of the challenge posed by social inclusion, it is necessary to establish a governance system that, among other objectives, encourages public-private collaboration for the social inclusion of the beneficiaries of the IMV.”

This governance will be managed “through the Seal of Social Inclusion, defined as a public distinctive that seeks to promote public-private collaboration through the recognition given to the actions carried out by the business environment “. However, the conditions to receive this seal or the incentives to seek it have not yet been developed.

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