The Government approves the minimum vital income

The minimum vital income is already a reality after being approved this Friday in the Council of Ministers. The star measure of the coalition pact between PSOE and Unidas Podemos corrects one of the deficits of the Spanish social protection system, a ‘rare warning’ in Europe for not having a state income guarantee system.

The state income guarantee program and by Social Security is expected to reach 850,000 households and 3.2 million people in a vulnerable situation. The investment is estimated at around 3,000 million euros.

The vulnerable situation that will entitle access to this aid will be determined according to the economic capacity of the household as a whole and the threshold will be placed at the monthly amount of the guaranteed income that corresponds according to the characteristics of the household. Thus, in the case of an adult, the limit will be 461 euros per month, while in the case of a family of two adults and two children the threshold would be 1,015 euros. The minimum vital income will cover the difference between the sum of the economic resources available to the home and the guaranteed income determined by the decree law for each type of home.

The variation between one figure, that corresponding to an individual, and the other, that of the family, is due to the complements per additional adult in the home and the number of dependent children that make up the home. But there are also plans for single parent supplements of 100 euros. So a household consisting of one adult and two children will be entitled, according to the draft, to a guaranteed rent of 977 euros.

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At the time of evaluating the income, there will be income from work, income from movable and real estate capital, as well as income from economic activities or capital gains. But, in principle, the income of the economic benefits established by the autonomous communities in concept of minimum insertion income will be excluded from this computation. And heA state minimum income will also be compatible with scholarships or study aid, housing aid and emergency aid.

In the fit of the state benefit with that of the autonomous communities has been one of the most complex points of management, given that there was the risk of overlap and the sum of two benefits. It seems that the issue has been resolved by converting both benefits, the state and the autonomous ones, making them compatible and potentially complementary.

From the Association of Directors and Social Managers warn that the autonomous communities, before the installation of the non-contributory Social Security benefit, may fall into the temptation to dedicate the 1,500 million euros that they currently invest in their own systems to other policies other than those related to social inclusion and social services.

Likewise, In calculating whether or not a household is entitled to the benefit, the patrimony will be taken into account. Therefore, it will be considered that a household is not in a vulnerable situation in the event that the coexistence unit has a patrimony for a volume equal to or greater than an amount yet to be determined, from which the value of the habitual residence, in general terms.

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The beneficiaries, in addition to meeting conditions regarding their income, must also meet another series of requirements, according to the draft decree that has come to the autonomous communities from Inclusión. So, they must be over 23 years old, unless they have at least one dependent child, and under 65 years old. In the event that they do not have minors in charge, they are required to have lived independently for at least three years before the application for the minimum vital income and, in addition, they must have been registered with Social Security during the less a year even if it is not uninterrupted. Likewise, they must have had legal and effective residence in Spain continuously and uninterruptedly for at least the year prior to the date of submission of the application.

Although, as a general rule, to calculate who is entitled to receive the income, the income and assets of the previous year will be taken into account, in order to collect the new vulnerabilities generated by the health crisis, it is contemplated to establish a mechanism to alleviate that deficit with which the guaranteed income would be born this year. In principle, it is expected that the most recent income can be contributed to calculate whether or not you can be a beneficiary of the aid.

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