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OE2024. Biggest ever increase in family support
OE2024. Biggest ever increase in family support
Minister of Labour highlights structural reinforcement in support and benefits and sustainability guarantee for future pensions
The State Budget for 2024 brings the "biggest ever increase in support for families", including a structural reinforcement that extends to various social benefits. The words are from Ana Mendes Godinho, Minister of Labour, Solidarity and Social Security, who stressed on Wednesday afternoon (October 11) the "collective path" that now allows the country to have the capacity to move towards a structural reinforcement of support to families.
It is "2.3 billion euros" in the State Budget for 2024 - a "value that represents, from the point of view of support for families, more than twice the budget allocated, for example, in 2015". And that is now possible as a result of the dynamics of work and employment, with a "historically low" unemployment rate, the increase in the number of workers and wage increases, realities that resulted in a 13% increase in social security contributions.
One of the main axes of this support is the structural increase of the family allowance, with an increase of 22 euros per month for all children regardless of grade (from the first to the fourth), which means "an increase of 264 euros per year for all grades".
Also in the family allowance advances "for the first time the increase of 50% for all single parents", with a minimum monthly increase of 33 euros per child.
Similarly, there is also a "structural increase in the child guarantee" - a "determining instrument" in the fight against poverty that will reach €122 in 2024.
Measures that will reach one million and 150,000 children and young people. The average child benefit is increased in 2024 to EUR 100/month - as a comparison, in 2015 it was EUR 42.
Another measure aimed at families is the extension of the response capacity in the free of charge of nurseries, a measure that will reach 120,000 children in September 2024. "All children in crèches will be covered free of charge," stressed the Minister of Labour, Solidarity and Social Security, adding that these figures represent 100 million euros of additional impact.
Next year, the Social Support Index (IAS) will increase to 510 euros, an increase of 6.2% - above inflation - which will translate into an increase of 30 euros. This being the benchmark for several benefits, in the case of unemployment benefit, this means that we have gone from "a minimum limit of 552 euros of unemployment benefit to 587 euros", while the ceiling goes from the current 1201 euros to 1276 euros, said Ana Mendes Godinho.
Also the Social Insertion Income (RSI), social protection for inclusion or death grant benefit directly from the increase of the IAS, which in the set of various benefits covered should reach a universe of 1.6 million people, without "counting the effect on pensions".
Pensions with "historic increases", guaranteed reforms beyond 2070
Pensions will have, in 2024, "historic increases", stressed Ana Mendes Godinho, noting that provisional data point to increases of 6.2% for pensions up to about 1,020 euros, of 5.8% for reforms between about 1020 euros and 3061 euros and of 5.2% for pensions above this value. An increase that will have an impact of about "2,200 million euros".
On the other hand, the goal of "achieving, for the first time, that no low-income pensioner stays below the poverty line" is anticipated by two years. In this sense, the Solidarity Supplement for the Elderly will increase by 62.45 euros per month, increasing the reference value to 550 euros per month.
The result of what Ana Mendes Godinho described as "joint work" by all has a direct impact on the sustainability of Social Security: We can say with confidence that we have won another 40 years in our pension vault, we have the pensions guaranteed beyond 2070 for the first time.
"If we follow this path that we have done together, by 2070 the Fund will have a capitalisation of around €100 billion. This is a collective construction of a joint future, of the ability to say also to young people that we are guaranteeing to the new generations the sustainability of a system that is for everyone and is also for those who are currently entering their professional life.
Check out the presentation of the 2024 Social Security Budget
Budget in a Minute
Source: Government Portal