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Vienna. The government announced Wednesday the details of its microinsurance reform. For families with children and people unfamiliar with German, this can sometimes lead to serious cuts. Federal Chancellor Sebastian Kurz (ÖVP) and Vice Chancellor Heinz-Chrisitan Strache (FPÖ) described the model as fair and equitable, including the focus on work incentives for beneficiaries.
In the Council of Ministers, a "punctation" for the protection of the minimum income was adopted, namely a declaration of political intention. The exact bill will follow during the week and will be reviewed for six weeks. This "framework law" replaces the Bund-Länder agreement on minimum standards for minimum income, which expired in 2016. For individuals, it provides for a maximum amount of 863 euros, for couples a maximum of 1 208 euros. People with poor knowledge of German should receive a third less. In particularly expensive cities, additional benefits in kind are possible, but capped at 30% of the minimum coverage.
Kurz, who presented the model after the Council of Ministers with Strache and Social Affairs Minister Beate Hartinger-Klein (FPÖ) and VP Club President August Wöginger, spoke of the need for reform. Austria already has more minimum income beneficiaries than residents of Burgenland and one in two is a foreigner. "We have mbadive immigration into the minimum income system," Kurz said. Therefore, we now propose a "fairer system" with incentives to work. The "Fleckerlteppich" of the different country regulations is also canceled.
Against social hamac
Similar to Strache: We have adopted an unjust model of the SPÖ, which is now more accurate, fair and equitable. Although he particularly welcomed the five-year waiting period for "EU social tourists", he stressed: "The minimum income must not degenerate into a social hammock" – for no one, not even for the Austrians. "
Government plans for families with children are particularly severe (according to Statistics Austria, 81,334 out of 231,390 children had a minimum income in 2017). About 216 euros per month for the first child, 43 euros for the second 130 and 43 euros for the third. In addition, these child benefits will be further reduced. As Hartinger-Klein said, the amount of the child allowance (€ 58 per child per month) should be deducted from the minimum income in the future. Currently, he is paid with family allowances to all families and does not reduce the minimum income.
In short, these large-scale cuts for families with many children explained that often working families did not have much more money available than a minimum-income child with many children. "50% of people earn less than 1,800 euros net," Kurz said. This means that it is no longer interesting for members of large families to work. And Wöginger: "If you work, you must not be stupid."
Expected padding
These reductions are amortized by single parents: they receive a supplement (103.5 euros for a child, 233 euros for three children), people with disabilities receive 155 euros more. "We take the problem of child poverty seriously," said Strache in this regard. Moreover, the FPÖ has not strengthened its demand for the abolition of badet access to "Aufstocker" in the minimum income. However, the current regulations have been relaxed: access to autonomous residential properties must be made after three years (even after six months). In addition, beneficiaries of a minimum income can keep 5,200 euros in cash (previously 4,300). Strache to: "We are ending the social cooling of the SPÖ."
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