Wednesday, February 17, 2016

Spending on unemployment benefits this year will reach the lowest level since 2008 – publico






This year, the cost of unemployment benefits must reach the minimum value since 2008, at a time when the unemployment rate did not go beyond 7.6%. The conclusion is drawn by the technicians of the Technical Unit of Budget Support (UTAO) after analyzing the draft State Budget (SB) in 2016.

In the technical report sent to Members, the UTAO note that the benefits unemployment in 2016 will cost 1608 million, representing a decrease of 8.6% over the previous year. This reduction is the result, according to the OE, the improvement in economic activity and the reduction in the unemployment rate from 12.4% to 11.3%, “not anticipating any change of substance to the level of the means test.”

“to confirm, this will be the level of expenditure with lower unemployment benefits since 2008, the year in which the unemployment rate was 7.6%,” the note UTAO without making any assessment of . if the goal is or not feasible

the technical remember, however, that part of this reduction in expenditure on unemployment benefits – which had already been felt also in 2014 – is also related to the changes to the regime access to unemployment benefits made in 2012

Among the changes, reflected in the provision value, were reduced to 18 months the maximum benefit of the concession period;. the 10% cut in support of value after the first six months and the introduction of a new ceiling of the benefit, which can not exceed 1048 euros.

the new rules also have contributed to a reduction in the coverage rate of unemployment benefits. A report of the Financial Management Institute of Social Security (IGFSS), released in October last year, concluded that in 2014 the percentage of registered in the employment centers receiving benefits reached the lowest level ever.

the UTAO also highlights the reduction of expenditure on subsidy of 453 million euros to 397 million disease. This value, say the technicians, “though similar to that recorded in 2012 and 2013, the last fifteen years has only been achieved in these two specific years, as a result of an efficiency gain of 60 million euros, via an increase in invitations to . disability verification service “

This is precisely the Government’s plan for 2016:. try all time low of less than 30 days to be checked by medical boards



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