For the first time, the number of people receiving a social integration income through Belgium’s public social welfare centres (CPAS) has surpassed the number of fully unemployed people receiving unemployment benefits.
In August, more than 200,000 people received a social integration income compared to 185,500 fully unemployed people receiving benefits. A year earlier, these figures stood at 166,000 and 304,000 respectively.
This change is a result of the recent overhaul of Belgium’s unemployment system. Beginning 1 March of this year, the federal government limited unemployment benefits to 12 months, with a possible one-year extension available depending on a person’s work history.
The government expected the reform to cut federal spending on unemployment benefits by nearly €2 billion. However, the growing number of people seeking social assistance is putting additional pressure on local CAPSs, who are responsible for administering the benefits.
Figures reported by Flemish newspaper De Standaard state that since January, approximately 133,000 people have lost their benefits while more than 57,000 additional people have begun receiving a social integration income through CPAS.
This means roughly 43% of people who lost unemployment benefits have turned to social assistance, exceeding Employment Minister David Clarinval’s (MR) prediction of one-third.
The reform has also recently faced legal challenges, as on 10 September Belgium’s Constitutional Court struck down part of the transitional scheme, ruling that some long-term unemployed people were given less time to receive benefits. The court upheld the general limit on unemployment benefits but found the affected transitional provisions discriminatory.
The impact on benefit payments and the number of people turning to CAPSs will depend on how the revised measures are implemented. A revised plan has not been announced.
