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Targeting of benefits a ‘headache’

08/11/2011 08:13
The government is considering increasing the number of beneficiaries and reducing the benefits so as to minimize reactions from the targeting of the social benefits.

For some months now, the bill for the largest measure of the second package has been shuttled between the Council of Ministers and the Finance Ministry, having already been cut down since the Ministry aims to save €160 million instead of €240 million that the initial commitment was.

Three months after the Ministry’s first commitment to the party leaders and weeks after the announcement of the measure, the bill was discussed once again during the last Council of Minister’s meeting.

“There were several thoughts during the Council of Minister’s meeting to make the measure on the targeting of the students and children benefit fairer”, the Minister told StockWatch, rejecting criticisms for delays.

“The commitment for a saving of €160 million is still valid”, he added.

“The social benefits will be based on the income criteria and the assets, while the poorer categories (gross income of €30k) will not be affected”.

The benefit will not be granted to families with income exceeding €80 thousand instead of €70 thousand.

The Finance Minister also clarified that “the intermediate scales will be increased from two to three and will be the same for both the students and children benefits”.

From the first scale, instead of cutting 10% from the sum that a household received as a benefit, 15% will be cut.

From the second scale, instead of cutting 20%, 25% will be cut depending on the income and the assets, while a new scale will be added, where 35% will be cut.

However, Mr. Kazamias did not exclude the possibility of making more changes until the submission of the bill, if this is deemed necessary.

Housing benefits

The Minister insists that the housing plans and the refugees’ benefits should be put in order too.

“The millionaire refugees should not take advantage of the state benefit to build houses of one million”, he stressed.

In his statements to StockWatch, the Interior Minister admitted that the Ministry’s technocrats are considering several scenarios in targeting the housing loans and benefits but they will not be revealed until their finalization.

Mr. Silikiotis emphasized that the targeting will not necessarily have to do with the reduction of the sum but the introduction of such criteria and assets that will reduce the number of the beneficiaries.

He also clarified that the plans that are already subject to income criteria will not change because “it is not our intention to affect the construction sector”.

“Stricter criteria will be introduced to the benefits granted for home repairs either urban or rural”, he noted.

“The relevant bill will be ready before the end of the year so as to be referred to the Parliament”, Mr. Silikiotis concluded.