Greece’s centre-right government is undertaking a major overhaul of its social assistance programs to ensure resources are effectively reaching those who need them most.
The initiative comes in response to concerns that the current system is not adequately reducing poverty rates and is vulnerable to fraudulent claims.
Despite spending approximately 2.7 billion euros annually on social benefits, the poverty risk rate in Greece remains at 18.9 percent. This suggests that the existing distribution of benefits is not achieving its intended goal.
Additionally, recent anti-tax evasion measures have exposed the need for stricter eligibility criteria to prevent individuals from falsely claiming benefits.
To address these issues, a special working group has been formed to re-evaluate all social benefits from scratch. This comprehensive review will consider a wide range of factors, including income thresholds, demographic trends, and the impact of inflation. The aim is to create a more targeted and efficient system that prioritizes those in genuine need.
One area of particular focus is child benefits, which are currently being considered for an increase to better support families. The housing allowance is also under review, with potential changes being linked to upcoming initiatives on social housing.
While the government faces budget constraints, it is committed to exploring all options to improve the social safety net. The goal is to ensure that resources are used effectively to combat poverty and promote social cohesion. These reforms represent a significant step towards a fairer and more equitable social welfare system in Greece.