September 26, 2020

What is known and what remains to be known about the Minimum Vital Income within days of its validation? | Economy


The Covid-19 pandemic has precipitated the launch of the Minimum Life Income (IMV), which the Government will approve this week, as President Pedro Sánchez announced on Sunday. The Ministry of Social Security has shaped in recent weeks one of the most far-reaching measures of the coalition Executive, which Escrivá began to weave even before becoming minister, when he was at the head of the Independent Authority for Fiscal Responsibility (Airef) . In the countdown so that the characteristics of this income are presented, these are the certainties and the unknowns.

What is known

How many people will benefit?

The Ministry of Social Security will take the family unit as a reference. Up to 850,000 families will obtain this aid, around 2.3 million people, some 600,000 households with incomes of less than 230 euros per month per consumption unit (obtained by dividing the total income of the household by the number of consumption units, with different scales) for an adult than for a child under 14, according to the INE). 100,000 households will receive the benefit ex officio in June.

How much can I receive?

It varies from 462 euros in the lowest case (an adult without children) and reaches 1,015 euros in cases such as households with four adults without children, according to a draft dated last week to which El País agreed. The Executive includes a supplement of 100 euros more for single-parent families. The aid will be accessible to families with income and wealth below a threshold set for each of the 14 types of family (without taking into account the habitual residence).

What is known and what remains to be known about the Minimum Vital Income within days of its validation?

Are there age requirements?

They can be requested by people from 18 years old (21 if they are single-member households without income) and up to 65 years old. There are exceptions: if the beneficiary lives alone, he must be at least 21 years old and live emancipated for three years. Aid is tied to a job search itinerary.

Do you know how much it will cost the public coffers?

At the beginning of May, Escrivá put the cost of aid at 3,000 million. A total amount that is far from the first estimates made by the Executive: 5.5 billion, which would be reduced to 3.5 billion as the mechanism was developed, because this aid would assume other subsidies. These numbers were based on an Airef report prepared when José Luis Escrivá himself chaired it. The now minister pointed out that the current numbers had been fine-tuned with the Treasury.

Will it be temporary or indefinite?

Escrivá clarified that the measure will be permanent and will be maintained once the alarm state has been lifted. This is due to the fact that Spain is currently one of the OECD countries with the highest rates of severe poverty and the worst income distribution.

Which entity will administer the aid?

Social Security will be in charge of managing it through the autonomous regions and the municipalities. The draft indicates that the autonomous communities and municipalities can sign agreements with the providing institute to be able to start the files.

Will it be compatible with other income?

It may be reconciled with other income, including wages, to encourage job search. Also with other regional aids, which may supplement it if they wish. On a temporary basis, the beneficiary may receive a higher income than the vital and continue receiving the aid.

When will it start charging?

Aid may be requested from June 1. Social Security will have three months to respond. If this period elapses without response, the request will be understood as denied.

In what situation could the beneficiary lose the aid?

The rule provides for three types of sanctions related to the infringement incurred by the beneficiary. Minor infractions (not providing documentation) would be sanctioned with a simple warning, while serious (not communicating changes in the home situation that lead to the aid) or very serious (“acting fraudulently in order to obtain improper benefits) or higher than those that apply ”) could cause the loss of aid or the payment of an amount equivalent to six months.

What remains to be defined

What will happen to the minimum insertion incomes managed by the autonomous communities?

The RMV will break into a decentralized and heterogeneous system of minimum insertion income, the last aid network for those who have finished with all the resources. This entry is widely criticized by social agents and by the UN because it does not provide coverage to all the population that needs it, for the bureaucratic difficulties in obtaining and maintaining it, or for the long waiting times until it is collected. Escrivá has said that both aids will be compatible. However, this socket will not be easy to manage. There are autonomous communities whose aid is higher than the minimum that the Government proposes (such as the Basque Country or Navarra), others that manage their aid through channels other than Social Security, or provinces that already ask their autonomous communities to manage it directly (Junta de Andalusia).

What is the equity limit to receive the aid?

This is the requirement that is being discussed most and the one that could change the most. According to the draft, the declarations will be taken before the Treasury from the previous year and the habitual residence will be excluded from the calculation. The text sets a maximum threshold: six times the annual income that guarantees the minimum income. Other properties will be counted (by market value if they are residential and by cadastral value when they are not), money in current accounts and pension funds. The patrimonial limit that the autonomous communities mark to define their minimum incomes is one of the points (together with the amount) that varies the most according to the region. There are some that specify not to exceed the aid limit by three or four, others that do not have a limitation, and others simply require that they lack the means to cover basic needs.

Can foreigners request it?

In several interviews, the Minister of Social Security has confirmed that only foreigners with legal residence in Spain for a minimum of one year may be beneficiaries of the vital income. Asylum seekers would therefore be excluded. However, according to the draft decree, aid may reach migrants who request international protection.

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