According to the NGOs, the package is a “first important step”, and others should now follow for financially weaker families and those on social security. Caritas President Michael Landau was pleased that the package “finally focuses on children” and people with particularly low incomes. However, it is also clear that many people and children will remain below the risk of poverty threshold. “These measures presented today cannot be everything,” said Caritas in a broadcast.
Rather, the sharpening shows “that the social network in Austria no longer adequately protects people, especially children and families, from poverty,” says Landau. It is essential “to work on the fundamentally necessary reforms of social and insurance benefits”. Specifically, Caritas called for a reform of social assistance, an increase in unemployment benefits and emergency assistance, and an increase in the compensatory allowance.
Similarly, the Diakonie: The new supports are helpful, “even if they do not replace a fundamental reform of the bad social assistance and an improvement in unemployment insurance”. The package should be the “first step towards an overall package against child poverty in Austria”, demanded Diakonie social expert Martin Schenk.
Volkshilfe Director Erich Fenninger also said that the measures will not replace structural reforms, such as unemployment benefits. A “total reform” of social assistance is also necessary.
AK: “Small plaster on big wound”
It is “good that the government is now getting going,” said the President of the Chamber of Labor (AK), Renate Anderl. However, the package is only “a small band-aid on a big wound”. A national action plan against child poverty and a basic law on social assistance that will ensure that nobody in Austria has to starve or freeze are long overdue. More than money is needed to fight poverty in the long term: benefits in kind, such as child education and care, must be expanded. The AK also called for a direct fight against inflation.
The trade union federation described the package as “insufficient” and said that “essentials” were missing, according to ÖGB Vice President and Women’s Chairwoman Korinna Schumann in a broadcast. The family allowance for the unemployed has not been valorized “for ages” and “unemployment benefits urgently need to be increased to 70 percent of the net replacement rate”. The ÖGB missed more protection against poverty. Schumann again called for price-cutting measures and referred, among other things, to the demand for a suspension of value added tax on important groceries and everyday goods.
Praise for moving away from “watering can”
Praise came from Court of Auditors President Margit Kraker, who now sees help for those “who really need it”. She “always criticized the watering can principle. The state cannot distribute an infinite amount of money.” The Court of Auditors always advocates “using aid measures in a targeted manner”.
WIFO boss Gabriel Felbermayr was also pleased: “Very positive & helps. Focus on kids is spot on because it’s purposeful,” he wrote via Twitter. “The next step could be to find lasting solutions so that child poverty does not arise in the first place,” he also addressed structural reforms.
Cost-of-living compensation for the financially disadvantaged
The government presented a package of measures on Wednesday that should benefit families with children in particular. In order to cushion inflation, they should receive an additional 60 euros a month per child.
The Red Cross pointed out that inflation is likely to remain high for a long time, so the time limits on support services do not make sense, according to Gerald Creator, President of the Austrian Red Cross. Red Cross Secretary General Michael Opriesnig was quoted in the broadcast as saying that long-term protection is needed for people in acute emergencies, who referred to the current high energy costs and the help offered by his own organization.
Opposition demands further steps
The opposition also sees a need for further steps. The SPÖ criticized that the government was not fighting the cause and was not taking any measures to lower prices. Instead, attempts are made to alleviate symptoms. “Driving people into poverty through misguided policies and then giving them handouts is neither just nor economically viable. And it’s immoral,” said SPÖ leader Pamela Rendi-Wagner on Twitter.
“Another day goes by without inflation being fought,” said social spokesman Josef Muchitsch. The government is currently moving out every other day “to cover up the self-inflicted total loss with plasters,” said Muchitsch via broadcast. SPÖ women’s chair Eva-Maria Holzleitner and SPÖ family spokeswoman Petra Wimmer also called for structural measures.
“No reason to cheer”
The FPÖ saw “no reason to celebrate” and criticized the government for the fact that inflation in Austria, in contrast to most EU countries, was still on the rise. “The reasons for this permanently high level of inflation are clearly the black-green inability to act,” said FPÖ social spokeswoman Dagmar Belakowitsch in two broadcasts. She called for the earnings limit to be raised and suggested benefits in kind – all in all, the package was too little and “much too late”.
NEOS, on the other hand, was pleased that the government “didn’t unpack the watering can this time”. “We NEOS have always demanded accurate help that really starts where it is urgently needed,” says family spokesman Michael Bernhard. However, he also missed structural reforms and once again called for a reduction in wage and income tax, especially for single parents.
The Federal Youth Representation (BJV) gave the package a “positive” rating. However, the BJV also demanded a “long-term strategy”. “We advocate the introduction of basic child security in order to combat child poverty in a preventative and sustainable manner,” said BJV chairwoman Rihab Toumi.
