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Ekonomia

The economic aid scheme is expected to change, the new 2024-2030 strategy is revealed, the value is expected to increase and the review of the scoring system is expected

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In the face of continuing rising prices and increased living costs, economic aid is insufficient. This fact is also accepted by the Ministry of Health and Social Protection itself, which proposes changing this scheme, helping the needy. In the National Strategy 2024-2030, it is stated that despite the increases over the years in the value of economic aid, it still remains insufficient to avoid the risk of being poor. "The payment of Economic Assistance is still low in relation to the income limit at risk of poverty or the minimum wage. The impact of the economic assistance program on reducing the risk of poverty is limited," the strategy states.

The formula

At the end of 2021, there were more than 622 thousand Albanian citizens living on the threshold of being poor. For a person to be considered at risk of poverty, he must have an annual income of no more than 191.7 thousand ALL or 15 thousand ALL per month. While the benefits provided by the national economic assistance scheme are much lower, as the monthly payments range from 1,800 ALL to 9,900 ALL per family, not per individual. Also, according to the strategy, the scoring formula should also change, as it was concluded that it does not identify all the needy. "Evaluations show that the scoring formula does not adequately respond to the current economic and social context, appearing outdated in terms of the eligibility criteria provided for in it. Not revealing the clear form of the scoring formula creates problems for transparency as well as affects the assessment of the effectiveness of the scoring formula to be truncated in terms of targeting. The coefficients of the scoring formula are estimated to be outdated due to the change of material and social conditions compared to the time when this instrument was approved", the strategy states.

The local government also came into play

Also, another point where intervention should be done is the possibility that the local government has to support these families in need. "The regional concentration of poverty in areas where the local government has a lack of fiscal space for support with its own funds as well as low employment and service opportunities require a differentiated support system based on the local context", the strategy continues. The strategy states that despite all efforts, including the employment of young people of working age, only 3% of the population was lifted out of the risk of poverty. Currently, the budget that goes to economic aid is 0.3% of GDP and in 2022 it supported 64 thousand families with 226,530 individual members.

CURRENT SCHEME GIVES

-1,800 ALL for families with one adult

-3,060 lek for families with two adults

- 4,320 lek for families with 3 adults

- 5,580 lek for families with four adults

- 2,700 lek for families with one adult and one child

- 3,960 lek for families with two adults and one child

- 4,860 lek for families with two adults and two children

- 5,760 lek for families with two adults and three children

- 9,900 ALL per month for trafficked women and victims of domestic violence

- The maximum amount of economic assistance is set at 150 percent of the social pension.

ALLOWANCE FOR FAMILIES WITH ECONOMIC ASSISTANCE:

- compensation for electricity consumption

- 300 ALL subsidy for each child up to the age of 15 attending school

- compensation of 110 ALL for each vaccination performed

- 100 additional lek per child per month for families with triplets, quadruplets and quintuplets