The first loans have arrived for those who benefit from the social participation allowance, which has replaced the citizen’s income since January. We start on Friday, January 26th. During questioning in Parliament on Wednesday, Prime Minister Giorgia Meloni revealed some figures. “The estimated average amount of the participation allowance is 635 euros per month,” the Prime Minister said, “that is, a figure higher than the average amount paid by the citizen’s income, which shows what we support: dividing the audience, especially those who are worse off”.
Why is the participation allowance amount higher?
According to the latest INPS data between January and November 2023, the average amount of Rdc was around 600 euros. Meloni is therefore right. However, there may be a fairly simple explanation for this difference. Unlike the citizen’s income, the participation allowance actually only applies to families where at least one member is a minor, disabled, over 60 or someone cared for by social services.
While families with children (usually receiving higher amounts) continue to collect the allowance, singles and childless couples have not received any aid for several weeks already. In other words, it would be logical to assume that the target group of the participation allowance consists of larger families and therefore they are entitled to a higher amount. The mechanism for determining the amount of allowances (which we explain below) remains very similar to the mechanism provided for the former DRC, even appearing somewhat punitive in some cases.
Meloni’s intervention
In his speech in the hall, Meloni confirmed that payments will start on January 26. “The government decided to abolish the citizen’s income, a measure that we consider wrong, and introduced two substitute measures for those who can work and those who cannot,” he explained. “The first measure is the participation allowance, which is active from 1 January 2024 to guarantee the protection of families”. Citing data from the Ministry of Labor, the Prime Minister added that as of January 20, “600 thousand of the pool of 737 thousand potential candidates have already applied.”
“The second measure is the promotion of training and work for employable people,” Meloni added. “Operating since September 1, 2023, as of January 20 this year, 165 thousand applications were made, nearly 70 thousand of them were processed and accepted, approximately 11 thousand people were hired, and 27 thousand people received 350 euros. Monthly payments as covering active policy expenses “. According to the Prime Minister, “out of 249 thousand potentially employable people who received citizenship income, only 55 thousand applied” that is, “it is possible that some of these people found a job, but it is also possible that some did not find a job.” I searched or worked illegally, so I am very proud of the work done , because if you don’t want to work, you can’t be supported.”
CGIL: “Derogatory and disrespectful remarks”
The prime minister’s intervention was sharply contested by CGIL’s confederal secretary, Daniela Barbaresi, who described Meloni’s words as “trashy” and “insulting”. “If you’re incompetent, if you’re unemployed, if you’re in a difficult situation, it’s your fault on the part of the government for not doing enough to get out of your situation. The union leader added: A government that blames the victims rather than worrying. Rather than eliminating the causes of inequality and poverty, it’s about dealing with them in the first place.”
Inclusion allowance: how do the amounts vary?
Going back to talking about amounts, the “equivalence scale” mechanism that determines the amount of appropriations is similar to the mechanism currently in force in the Decree, but with minor adjustments. The maximum annual allowance for single-person families remains at 6 thousand euros (€500 per month), to which must be added the rent contribution, which can reach 3,360 euros per year (€280 per month). The maximum limit for people over 67 is 7,560 euros per year (630 euros per month), to which the rental fee must be added (1,180 euros per year). No news so far. The maximum allowance for an “unemployed” single therefore remains at 780 euros, the same as received from the Rdc.
But things are changing for families with young children. While the rate called “equivalence scale” with the citizen’s income was actually increased by 0.2 for each minor component, with the new participation allowance, this increase became 0.15 “for each minor age” up to the second and 0.10 from the third. . This means that an adult with zero income, two dependent children and a rental home would be entitled to a check of 930 euros, whereas today the citizen with his income will receive a check of 980 euros.
The equivalence scale is also increased by 0.5 for each disabled member and 0.4 for each adult member with a care burden (in the case of self-care of minors under 3 years of age, 3 or more minor children, or disabled or disabled individuals in the household). . sufficient).
In the case of a family with zero income, it is sufficient to multiply the envisaged annual allowance of 6,000 euros by the value of the equivalence scale with the maximum benefit to calculate the amount. For example, if we have an adult with a minor child, the equivalence scale will be 1.15 (1+0.15) and the allowance will be equal to 6,900 euros per year (575 euros per month). This amount will then be added to the rent contribution, which can go up to 280 euros per month for people under 67 years of age.
Source: Today IT
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
