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News2022-09-29

ESF+ maximises minimum income – and opportunities for work

man looking at receipts in grocery store
(c) 2022 shutterstock

On 28 September 2022, the European Commission called on Member States to modernise their minimum income schemes and came up  with a proposal for a  Council Recommendation on how they can modernise their minimum income schemes to make them more effective, lifting people out of poverty, while promoting the labour market integration of those who can work.

As the main EU instrument for investing in people and implementing the European Pillar of Social Rights, the European Social Fund Plus (ESF+) represents one of the primary EU funding schemes that Member States can use protect the most vulnerable from poverty and social exclusion and provide incentives and support for their labour-market reintegration – while preserving public finances. All EU countries are required to allocate at least 25% of the ESF+ investments to combat social exclusion, with another 3% for addressing material deprivation – ensuring vulnerable individuals and families can afford essential goods and services.

Member States are already programming the ESF+ and building up on previous achievements. For example,  the Fund for European Aid to Most Deprived (FEAD), which is now integrated into the ESF+ supports E-vouchers in Brescia, Italy. This project has already helped more than 500 people to meet their households’ basic needs while removing the stigma of poverty – empowering individuals to make their own choices with a bit of financial help.  

Further, the Employment and Social Innovation (EaSI) Programme, now integrated into the ESF+, supports innovative pilot projects on minimum income. Examples of EaSI support in this area include: 

  • In France, the project ‘A roof, a job' (‘Un toît sur la tête : un job dans la poche') of the Lyon region is testing a minimum income scheme for young people between 18 and 25 years. This projects takes steps towards equality among generations, coupled with innovative solutions to combine housing and job programmes for young people at risk of poverty and social exclusion. 

  • In Germany, Hungary, and Slovakia, the ‘Cooperate, Reach Out, Integrate Services (CRIS)' project develops a model for the integrated delivery of enabling services such as housing and health services to support the social and labour market integration of vulnerable groups. 

ESF+ projects like these can make a difference in the lives of Europeans just trying to get by – or get back into the job market.  They also represent how the ESF+ is working to make the principle for minimum income under The European Pillar of Social Rights a reality, by helping households at risk of poverty and social exclusion.

Moreover, by investing in the modernization of enabling services and social systems, ESF+ can help to achieve the EU's 2030 social targets to reduce the number of people at risk of poverty of exclusion by at least 15 million. This can also help Member States reach the goal that at least 78% of the population aged 20 to 64 should be in employment.