The European Commission has proposed a Council Recommendation on adequate minimum income ensuring active inclusion. The proposal calls on Member States to modernise their minimum income schemes to make them more effective, lifting people out of poverty, while promoting the labour market integration of those who can work.

Minimum income refers to cash payments that help households who need it to bridge the gap to a certain income level to pay the bills and live a life in dignity. Adequate minimum income is highly relevant in the current context of rising energy prices and inflation.

Well-designed minimum income schemes strike a balance between alleviating poverty, incentivising work and maintaining sustainable budgetary costs. While also helping to realise the potential of the green and digital transitions by supporting labour market transitions and active participation of disadvantaged people.

The proposal recommends Member States to:

  • Improve the adequacy of income support
  • Improve the coverage and take-up of minimum income
  • Improve access to inclusive labour markets
  • Promote individualised support

The Commission’s proposal will now be discussed by Member States with a view to adoption by the European Council.

Find out more about the proposal here.