Hungarian National Strategy Report on Social Protection and Social inclusion Györgyi Vajda Social Inclusion Unit Ministry of Social Affairs and Labour 3 November 2009

National Strategy Reports 2000: Social inclusion on the agenda of the EU within the Lisbon strategy Tool: open method of coordination - OMC  National Action Plans for Social Inclusion (since 2001)  Common indicators  Joint Reports by the Commission and Council (annually)  Community Action Programme / PROGRESS Programme 2003: National Strategies for Pensions 2006: National Strategies for Health and Long-term care Since 2006: National Strategy Report for Social Protection and Social Inclusion - the above three strategies together Consisting social inclusion, pensions and health and long-term care

Main trends in social exclusion in Hungary  Employment rate: 57.3% (2007) – 55.6% (2009)  Unemployment rate: 7.9 (2008) - 9.6% (2009)  Female employment rate: 49.9% (2009)  Long-term unemployment (within the unemployed): 58.0% (2008)  Employment rate of older workers: 33.1% (2007)  Youth unemployment rate: 19.7% (2008)  Early school leavers: 10.9 % (2007)  People living in jobless households: 11.8% (2007)  Children living in jobless households: 14% (2007)

Main trends in social exclusion in Hungary Inequality: S80/S20: 3.7 (2007) – EU: 4.8 Poverty rate: below 60% of the median income per head  Overall poverty rate: 12% (2008) – EU: 16%  Poverty rate among children: 19% (2008) – EU: 19%  Poverty rate among the elderly: 4% (2008) – EU: 19%  Poverty rate before transfers (except pensions): 30% (2008)  Poverty rate before transfers among children (except pensions): 47% (2008)  Material deprivation: 37% (2008)

Poverty rates in the EU Member States, 2006

Percentage of population with income <50% of EU median income

Adults and children living in jobless households, 2007

Impact of social transfers (excluding pensions) on the at-risk- of-poverty rate for the total population and for children, 2006

Social protection expenditure as % of GDP, 2005

Main risk groups facing social exclusion in Hungary: as indentified in the National Action Plan on Social Inclusion (NAP/incl):  Children  Large families, lone-parent families  Long-term unemployed, inactive people – people with low educational attainment  People living in disadvantaged rural territories  Roma people  Homeless people

Social protection system in Hungary Basically a continental (Bismarckian type system), with Anglo- saxon elements strengthening after the change of regime  Social security: - Mandatory health care system - Mandatory social security pension system - Private pension funds mandatory for spec. age groups  Social assistance for the most disadvantaged: - Competence of local governments - Various in-cash and in-kind benefits  Universal benefit: - Family allowance

Most important social benefits in Hungary:  Monthly average number of recipients of family allowance (families): (2009) Monthly amount: 50 Euro  Monthly average number of people receiving regular child protection subsidy: (2007)  Number of people receiving benefit of active age (regular social allowance or availability benefit): (2009) Monthly amount: 110 Euro  Monthly average number of people receiving old-age allowance (minimum income for the elderly): (2007)  Disability pensioners: (2007)

Figures on social services (main types):  Family support service: Number of beneficiaries: people (2008) available in 2220 settlements (70% of settlements)  Child welfare service: Number of children benefited from the service: children (2008) available in 2350 settlements  Residential homes for the elderly: Number of beneficiaries: people (2008)  Residential homes for disabled people, psychiatric and addictive patients, homeless people: Number of beneficiaries: people (2008)  Home assistance: Number of beneficiaries: people (2007) available in 2/3 of all settlements  Nurseries (for children under 3): Number of beneficiaries: (2008) Ratio of registered children to children aged 0-3 : 9% (2008)

National Action Plan on social inclusion (NAP/incl) Part of the National Strategy Report on SP & SI The most comprehensive strategic document on social inclusion Elaborated according to the EU common objectives Plans for , and – accepted by the Government, consulted by key stakeholders Structure: - Main challenges, objectives and targets - Current and perspective policy measures according to main priorities - Governance issues Annexes: - Trends and figures - Monitoring report on the previous plan - „Good practices”

Priorities of the NAP/incl Promoting labour market inclusion and decreasing inactivity (best way out of poverty is a job) 2. Tackling child poverty in accordance with the „Let it Be Better for Children” National Strategy against Child Poverty ( ) 3. Reducing territorial and housing disadvantages - with special regard to the integration of the Roma

The NAP/incl is supported by …  the New Hungary Development Plan  especially Social Renawal Operational Programme  The „Let it be better for children” National Strategy And coordinated with:  The National Reform Programme

Main targets:  increase the employment rate of the population of years to 57.7 per cent by 2010 (in 2007: 57.3 per cent);  increase the employment rate of women to 52.2 per cent by 2010 (in 2007: 50.9 per cent);  increase the employment rate of elderly workers (55-64 years) to 34.8 per cent by 2010 (in 2007: 33.1 per cent);  decrease early school leaving among people of years to 10 per cent by 2010 (in 2007: 10.9 per cent);  decrease the rate of the working age population (18-59 years) living in jobless households to 10 per cent by 2013 (in 2007: 11.8 per cent);  decrease the poverty rate of children by one fourth by 2013 (in 2007: 19 per cent);  increase the capacity of nurseries caring children of 0-3 years by 5,000 places until 2015 (in 2007: 25,154 places).  decrease the average access time of micro-regional centres by 20 per cent from 2007 to 2013.

Priority 1. Promoting labour market inclusion and decreasing inactivity Main measures: ALMPs and other programmes improving the employability of long-term unemployed and inactive people; Extending the social economy and other non-standard employment forms mainly through NGOs; Strengthening employment incentives in the social benefit and service system; Training programmes for people with low educational attainment; Tackling labour market discrimination. Programmes are mainly financed by the ESF Note: this priority highlights work incentives of social benefits and services and deals with employment and training programmes less detailed

ESF funded projects for long-term unemployed people Comprehensive projects for improving the employability of long-term unemployed and inactive people based on individual development plans - Projects operated by NGOs (SROP ) - Projects operated by social services (SROP ) Activities to be supported: status assessment, individual development and service plan, psycho-social services, development of key competences, guidance, training, access to employment.

Priority 2. Tackling child poverty Implementation of the „Let it be better for children” National Strategy ( ) according to its governmental action plan for Improving the income situation of families with children through in-cash and in-kind benefits; Strengthening daycare services for small children as well as child welfare and child protection services; Equal opportunities in public education; Health care of children and youth.

Priority 3. Reducing territorial and housing disadvantages - with special regard to the integration of the Roma  Comprehensive closing-up programmes in the 33 most disadvantaged micro-regions (SF funds);  Improving access to social services in disadvantaged regions;  Decreasing housing disadvantages with special regard to Roma colonies;  Measures against homelessness. For the Roma: horizontal approach territorial targeting

Use of the EU Structural Funds for NAP/incl priorities: NAP/incl priorities: ► Promoting labour market inclusion and decreasing inactivity ► Tackling child poverty ► Reducing territorial and housing disadvantages - with special regard to the integration of the Roma SROP measures: 1.1. Labour market measures for long-term unemployed and disabled people 1.2. Employment subsidizes for employees of disadvantaged people 1.4. Innovative employment programmes 2.1. Training programmes for people with low educational attainment 5.3. Improving the access of multiplied disadvantaged groups to social services in order to promote their integration into the labour market 5.4. Development of the social services system, improvement in access to services 5.5. Strengthening the anti-discrimination service system 5.2. Investment in our future: child and youth programmes, Sure Start houses 5.1. Developing the human capacities of the most disadvantaged micro-regions 5.3. Comprehensive social and labour market integration programmes of homeless people SIOP 3.4. modernisation of social institutions Regional Operational Programmes (ROP)

2010 – European Year against Poverty and Social Exclusion Communication campaign in order to  Raise public awareness on the issue  Mobilizing all stakeholders for tackling poverty  Gain political commitment  Making the media more sensitive to the issue

EU-website: _exclusion_en.htm Thank you for your attention!