Benefits: From the single register to the single supply to socially vulnerable – The “core” of the upcoming reform

The path to the payment of a ‘single’ social allowance is expected to open up the formation of a single register, which he announced yesterday (24.08.24), the Minister of Finance, . In particular, Mr. Hatzidakis said that “We will create one, beyond the intervention that will now be made for OPECA allowances (p. p. increases in child benefit for families with 2 children) and beyond any interventions on unemployment benefit (e.g. increase in unemployment benefit for those with many years of insurance etc.). The aim is “to have a central control over benefits in order to receive them from those who really need them”. The basic idea of uniting the benefits “measures” already four years, as it had been reflected in the Pessarides Commission’s findings (Development Plan for the Greek Economy, 2020). The pandemic crisis and then the energy crisis slowed its implementation, but the time for its progress is now appropriate in government. It is worth remembering the specific mention of the finding in this regard, according to which ‘the benefit system should be radically simplified. For example, all benefits could be consolidated into one, except unemployment benefit, disability allowance, and a housing allowance paid to weak debtors. The consolidated allowance should be given to persons with low family income even if they are working, and should be designed to enhance incentives for work. Income should be calculated on the basis of family structure (e.g. number of children) and there should be special targeting for families with greater need, such as mothers or fathers with children without a partner. The determination of the allowance as well as its relationship with total family income and wealth should be made by a special committee with access to individual data (such as family budgets) and data from tax returns. The Committee should also have determined how the allowance system should be financed, taking into account the tax system. The benefits should be managed in a unified manner, through a single digital access portal where a history is kept for each individual. The system could possibly be consolidated with tax administration, and managed by tax authorities, as allowances and taxation relate to each other: they are transfers from or to the State. In this case, all the necessary eligibility criteria will be indicated in the person’s tax return, without requiring an additional application for the allowance. The tax authorities will then pay the allowance, taking into account the tax information of the other members of the family. The allowance can be disbursed every month, pending the final tax declaration, where the final balance is determined.”