Unemployment subsidies, rent subsidies, access to housing for official protection, scholarships for study or for daycare are some aids that will be more difficult to access or that will be reduced in amount with the increase of 2% Experience the IPREM in the 2019 Budgets.
The unions have been demanding for years a greater update of the IPREM, linking it to the interprofessional minimum wage or, even, they are asking to establish a permanent system of automatic revaluation that maintains the real value of this indicator over time.
Its freezing "impoverishes the part of society that has suffered most from the crisis, because they lose purchasing power or are hindered access to aid", as spokesmen of CCOO and UGT explain in statements to Efe.
The public multi-purpose income indicator (IPREM) was created in 2004 with the objective that non-work-related subsidies and subsidies stop being updated according to the minimum inter-professional salary (SMI).
The granting of these non-labor benefits is subordinated to the income of the applicant, so that they can not exceed a certain number of times the IPREM, while the amount of some of this aid is calculated around this indicator.
The update of the IPREM depends on the Ministry of Finance, it is carried out every year in the General State Budgets and it has been quasi-frozen since 2010, with an accumulated increase in those years of only 16 euros per month.
For 2019, according to the project of Law of General State Budgets, the IPREM increases by 2%, up to 548.6 euros per month, after maintaining it last year, after a rise of 1% that put an end to six consecutive years of freezing.
Specifically, the IPREM serves to set the minimum and maximum limits between which the amount to be received for the contributory benefit for unemployment oscillates, as well as to establish the monthly amount of the unemployment subsidy.
In the case of aid corresponding to agricultural income, the amount that is received depends on the number of actual days worked and the current monthly IPREM.
It also affects free legal aid, as long as the applicant's annual income does not exceed a certain number of times the IPREM, fixed according to their family conditions.
In access to housing, the IPREM establishes annual income limits to qualify for one of official protection, while also being taken into account for rental assistance.
The IPREM also influences the granting and amount of scholarships or study aids, both for nurseries, schools, for training or to study at the university.
In the case of a person who does not meet the quotation requirement required to receive the contributory benefit for maternity, you can request the non-contributory, whose amount is fixed in accordance with the IPREM, as well as the compensation for loss or paralysis in transportation of national merchandise.
And what happens if it stays quasicongelado? Well, if the SMI and inflation continue to evolve and the IPREM does not do so at the same time, there will come a time when only people who are in absolute poverty will be able to benefit from this aid.
Since it was created in 2004, the IPREM has been revalued 19.1%, from 460.5 euros per month to 548.6 this year, while the SMI has almost doubled (95.4% more) , going from 490.8 to 900 euros, while inflation has accumulated a rise of 28%.
If the incomes of the families improve, but the index is kept quasicongelado according to which the aid is granted or calculates its amount, the result is that it hinders or hinders its access.
From UGT, consider that, after seven years of freezing and pyrrhic increases, the increase of 2% is "totally insufficient to serve the most vulnerable groups."
Also, remember that Article 2 of Royal Decree Law 3/2004, of June 25, determines as the minimum threshold of annual update of the IPREM the inflation forecast used in the General State Budgets (PGE), a link that has not been taken into account in most years.
In the same sense, the Secretary of Employment of CCOO, Lola Santillana, recalls that with this increase "there will be more people who are left without access to aid because they do not meet the minimum requirements", so it requires the Government to revalue the same rate as the minimum interprofessional salary (SMI).
A study prepared by Belén Benjumea and directed by the professor of the University of Seville María Dolores Pérez points to the need for the IPREM to evolve at the same time that inflation does, either up or down, because the opposite causes that those who have less can lose purchasing power.
However, he adds that this could also trigger public spending, for what he considers convenient "to find a balance between both aspects".