AIReF believes that this aid has only reached part of its potential, as it has reached only 284,000 families, 40% of potential beneficiaries, and only 22% of at-risk families.
More than two years after the government launched the Minimum Vital Income (IMV), one of the Coalition Executive’s key measures to combat poverty, there are still 400,000 households who could receive this benefit but have not asked for it. That is what the Independent Authority for Fiscal Responsibility (AIReF) states in its first published opinion on this initiative.
This body, which is tasked, among other things, to conduct an annual review of this measure, believes that this benefit “has only reached part of its potential”, as it reached only 284,000 households – with data as of December 31, 2021 who do. excluding the Basque Country and Navarre – mostly families with children, but 700,000 could benefit from being fully implemented, which would require €2,800 million.
Moreover, it barely covers 22% of households at risk of poverty, estimated at 1.3 million. Covering all poverty would entail a total cost of 6,000 million a year, compared to 1,600 million implemented, according to data from Airef, which believes it has reached only 40% of its potential beneficiaries and 56% of its budget, but assures that “it still has a long way to go to become a more powerful tool in the fight against poverty and social exclusion”.
In this sense, the Tax and Customs Administration notes that 400,000 households that could receive the IMV have not yet applied for it, 57% of the potential beneficiaries, a phenomenon known as ‘non-take-up’. This phenomenon, common in international practice due to the complex management of this type of benefit, occurs in households with a certain income and is mainly concentrated in households that would receive a more limited income increase if they were IMF beneficiaries.
In any case, the number of applications was high, especially in the first months, above 1.5 million, but a very high percentage was rejected. AIReF specifically points out that 73% of completed applications were rejected or inadmissible, although this percentage has dropped to 60% over time. The main cause of refusal or refusal is failure to meet the income criterion, followed by the cohabitation registration requirements.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
