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The use of reference budgets in local social

welfare offices

Bérénice stormsResearch coordinator Cebud

4-9-2014

Cebud

• Multidisciplinair centre for budget research and budget advice(cebud) at Thomas More

• www.cebud.be

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Content

• WHAT are reference budgets?• WHY we need reference budgets?• HOW can reference budgets be used in local

social welfare offices?• REMI, a social innovative tool to empower

vulnerable families

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What are reference budgets?

Reference budgets are priced baskets of goods and services, representing a socially acceptable standard of living

Why we need reference budgets?

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Reference budgets can be/are used for:

1. Contextualizing poverty lines; 2. Measuring the adequacy of minimum incomes;3. Determining supplementary income support, settling income

maintenance, debt rescheduling;4. Financial education/debt prevention;5. Encouraging politicians to work towards a socially inclusive society6. …

HOW can reference budgets be used in local social welfare offices?

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• Request from local Social Welfare Offices (SWO) to develop reference budgets

• Core mission SWO: set up actions that empower vulnerable people, so that they are able to live a decent life

• Instruments SWO:• Material support (e.g. food vouchers, (transit) housing,

vouchers for social and cultural activities)

• Immaterial support (e.g. psychosocial counseling, legal advice and assistance, job-seeking)

• Financial support (social assistance + additional income support)

HOW can reference budgets be used in local social welfare offices?

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• SWO mission:• Material support • Immaterial support • Financial support

• Social assistance income• Eligibility criteria, level of support, criteria for means testing are

regulated at a national level• Additional income support

• Eligibility criteria, level of support, criteria for means testing are regulated at the local level

• No norm or criterion to objectify what a decent income should entail

• Result: big differences between SWO’s and within SWO’s in the amount of supplementary financial support for clients with the same living conditions

• Request for the development of reference budgets that can be used as a benchmark to evaluate the income situation of clients in the light of human dignity

HOW can reference budgets be used in local social welfare offices?

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• Key choices for the development of reference budgets:• Standardization of targeted living standard:

• Minimum resources required for adequate social participation

• Standardization of target population:• Children and persons at active age in good health, without disabilities, and with

normal competences, living in an urban environment

• Standardization of model families:• Single (woman, man - active age)• Couple (male and female - active age)• Single woman (active age) + 1 and 2 child (2, 4, 6 & 15 years old)• Couple (male and female - active age) + 1 and 2 children (2, 4, 6 & 15 years old)

• Standardization of geographical scope: Flanders (city, country side accessible by public transport)

• All long-term RBs: access to a targeted living standard for an undetermined period of time

HOW can reference budgets be used in local social welfare offices?

• Question: how can standardized reference budgets be adapted for personal living circumstances of people?

• Answer: REMI

- Online web application with RBs adapted for personal situation of client (it compares necessary costs (medical costs, housing costs, school costs in secondary and higher education, …) with family income)

- Developed together with user group- Provides insight into which efforts

should be delivered by clients and SWO to enable a decent life

- Systematic and well structured gathering of income components and necessary expenses give more transparency

REMI output

Menswaardig leven in Vlaanderen10

REMI Output

• Overview of an adequate personalized family budget, grouped into:– Fixed costs– Living costs– Reservation expenses

• Provides politicians of SWO board an insight into the necessary efforts to ensure clients a dignified income

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Thank you for your attention !

More info: info@cebud.be

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