Active inclusion of disadvantaged people – A European Effort István Ványolós – policy analyst Active inclusion of disadvantaged groups, fight against poverty – EMPL D/2 DG for Employment, Social Affairs & Social Inclusion, European Commission June 16, 2011 – Brussels

Commission européenne Social services: Europe at crossroads New social challenges that have emerged since the end of the Cold War: - transition to a post-industrial knowledge and service economy; - globalization, enlargement (with increase of migration and flow of capital) - demographic changes (aging societies); - social trends such as greater individualisation; => need for quality social services and personalised support even more pressing. In particular: - Support of those in need it is more pressing in the aftermath of the crisis -Access to services as a basic pre-condition for being available for work, and it fosters social participation; - Need to provide employment since work is the best way to eradicate poverty

Commission européenne The integration of people excluded from the labour market Target group “ people excluded from the labour market ” [art 137(1)(h)]: non- employed working-age population suffering from multiple disadvantages (at-risk-of-poverty as a proxy): approximately 80 million people in the EU-27 in 2008 Objectives: 1/ facilitate the integration into sustainable, quality employment; 2/ provide resources which are sufficient to live in dignity, 3/ together with support for social participation, for those who cannot work.

Commission européenne The active inclusion approach Strategy: 1)Adequate income support 2)Inclusive labour markets 3)Access to quality services which are essential to supporting active social and economic inclusion policies: social assistance services; employment and training services; housing support and social housing; childcare; long-term care services; health services. Key steps: - Council Recommendation 92/441/EEC - COM(2008) 639 Recommandation on Active Inclusion - Council conclusions 17 December European Parliament resolution – May COM (2010) 2020 – Europe 2020 – A strategy for smart, sustainable, and inclusive growth - COM(2010) 758 – The European Platform against Poverty and Social Exclusion

Commission européenne Common principles on active inclusion -Horizontal coordination: comprehensive policy design and integrated implementation -Vertical coordination: policy coordination between levels of government and active participation of all other relevant stakeholders Principles common to all three strands: (a) support the implementation of fundamental rights; (b) promote gender equality and equal opportunities for all; (c) consider the complexities of multiple disadvantages and the specific situations and needs of the various vulnerable groups; (d) take due account of local and regional circumstances and improve territorial cohesion; (e) be consistent with a lifecycle approach to social and employment policies so they can support intergenerational solidarity and break the intergenerational transmission of poverty.

Commission européenne Minimum Income Schemes Most MSs have some form of minimum income scheme (MIS) for people of working age which aim to ensure a minimum standard of living when they have no other means of financial support Eligibility conditions vary significantly across countries (based on age, residence, lack of financial resources, and willingness to work) Emerging trend: link income payments with employment supports and activation measures (conditionality) Most MISs are national schemes, but there are examples at local and regional levels The financial crisis exerts double pressure on MISs: there are more people in need of support, but in the same time governments are reducing public expenditures Potential problems with MISs: adequacy, coverage, non take- up

Commission européenne Inclusive labour markets -Address the needs of people excluded from the labour market in order to facilitate their progressive reintegration into society and into the labour market and to enhance their employability; -Take the necessary measures to promote inclusive labour markets in order to ensure access to employment is an opportunity open for all; -Promote quality jobs, including pay and benefits, working conditions, health and safety, access to lifelong learning and career prospects, in particular with a view to preventing in-work poverty; -Tackle labour market segmentation by promoting job retention and advancement. Practical guidelines: investment in human capital; active and preventive labour market measures; financial incentives; demand side policies; in-work support.

Commission européenne Access to quality services - Territorial availability, physical accessibility, affordability; - Solidarity, equal opportunities for service users and employees, and due account for diversity of users; - Investment in human capital, working conditions, and adequate physical infrastructure; - Comprehensive and coordinated services, conceived and delivered in an integrated manner; - users' involvement and personalised approaches to meet the multiple needs of people as individuals; - Monitoring and performance evaluation and sharing of best practice.

Commission européenne Net Incomes on social assistance (including housing benefit) as a % of the average wage – 2007 (Source: Minimum Income Schemes Across EU Member States)

Commission européenne Gini coefficient before and after inclusion of expenditures on public services in selected OECD countries, around 2000 Note: Countries are ranked from left to right in increasing order of the Gini coefficient of income inequality, based on cash income. Estimates based on micro data. Source: Based on OECD (2008a), Figure 9.5.

Commission européenne Poverty rates before and after accounting for health care services for men and women, floating poverty line, 2007 Source: OECD/EU database on the impact of in-kind services.

Commission européenne Child poverty rates before and after accounting for Early Childhood Education and Childcare services (floating poverty line) Source: OECD/EU database on the distributional impact of in-kind services.

Commission européenne Active inclusion in practice Inclusive Cities for Europe – partnership between the Commission and EUROCITIES (a network of major European cities) to support active inclusion policies among cities A group of ten cities (Barcelona, Birmingham, Bologna, Brno, Copenhagen, Cracow, Lille- Roubaix, Rotterdam, Sofia, and Stockholm) within the Network of Local Authority Observatories on Active Inclusion (NLAO) share their experiences to promote mutual learning and carry out research on the implementation of active inclusion strategies at the local level

Commission européenne Active inclusion in practice – examples Rotterdam – Group approach for labour activation programmes (individuals participate in group counselling sessions according to their age instead of having individual interviews). The approach has improved efficiency (less cost) and effectiveness (people like exchanging useful experiences on how to find jobs) Cracow – Social Economy Infrastructure (INES) project with the support of European Social Fund provides professional support such as training sessions on business skills and access to finance for people interested in establishing a business activity in the social economy sector Brno – Community planning of social services. The planning, design, and budgeting of social services is organized through the direct involvement of the municipality, service providers, NGOs, research institutions, and service users.

Commission européenne Europe 2020 Strategy and Active Inclusion Three of the five targets are related to active inclusion policies: –Employment: 75% of the year-olds be employed –Education: reducing school drop-out rates below 10 percent At least 40 percent of year-olds completing tertiary education –Poverty/social exclusion: At least 20 million people fewer in or at risk of poverty and social exclusion

Commission européenne Follow-up and supporting framework – Monitoring and evaluation of the common principles in the framework of the Social Open Method of Coordination; –Social dialogue: autonomous framework agreement on inclusive labour markets – Network of Local Authorities ’ Observatories to monitor and promote best practices on active inclusion policies especially in relation to quality services and to analyse the development and implementation of active inclusion strategies at the local level. –EU Financial Instruments: The Commission encourages use of the provisions of the ESF regulation to support active inclusion measures; – PROGRESS: funding for mutual learning projects and peer reviews

Commission européenne Thank you for your attention