Job insecurity and housing drive poverty in Catalonia

A report reveals that most social benefits, except retirement pensions, have minimal impact on poverty reduction.

Generic image of documents and forms, symbolizing bureaucracy in social benefits.
IA

Generic image of documents and forms, symbolizing bureaucracy in social benefits.

The majority of disposable income for Catalan households is spent on covering basic needs such as rent and food, leaving many people in precarious situations despite being employed, according to a recent report.

This situation is exacerbated by the lack of effective housing policies and job insecurity affecting 42% of workers, who are considered poor. Poverty figures could be even higher, as they do not include vulnerable groups such as undocumented immigrants and people in severe residential exclusion.

"Disposable income practically all goes to covering basic needs, rent and food, leaving people in a precarious situation despite working."

a spokesperson for the organization
Despite the existence of numerous social benefits, their effectiveness in lifting people out of poverty is limited. Only retirement pensions show a significant impact, while other aids have an almost insignificant effect on young people and children. One of the main obstacles is excessive bureaucracy and dissuasive criteria that prevent many eligible individuals from applying for these aids.
The complexity of the system, with the difficulty of knowing all benefits, access requirements, and their compatibility, creates significant barriers. For example, the incompatibility between rental assistance and the Guaranteed Citizenship Income (RGC), or the need to apply for the minimum vital income before the RGC, are examples of this structural violence of the system that excludes many potential beneficiaries. Furthermore, current fiscal policy does not contribute to a fair redistribution of wealth.
The proposed reform of the RGC being debated in the Parliament is not expected to improve the current situation, and a worsening of poverty and exclusion figures is anticipated in the coming years. Most political parties advocate for the conditionality of the RGC, which would involve monitoring by social services and an accompanying plan, forcing beneficiaries to justify receiving the benefit.

"If the criteria for a minimum income are met, why should this benefit be conditional? If it is a right, it is a right."

a spokesperson for the organization
The organization proposes an unconditional RGC, fully compatible with earned income, accessible from 18 years of age (currently 23) and with a residency requirement of 12 months instead of 24. They also suggest a child supplement of 200 euros and that only income from the previous two months be considered, in addition to shortening resolution times.
The rise in homelessness is a growing concern, with a significant increase in the last two years. This situation reflects the fall of people who were living on the edge. Additionally, there is an increase in hidden residential exclusion, with more people living in rooms or substandard housing. Current legislative reforms do not seem to address the root problem, suggesting that the situation could worsen in the future. The middle class, while not having disappeared, is shrinking due to social polarization, which pushes more people towards the extremes of poverty and wealth.