Finance: Social benefits news in Portugal

The Socialist Party (Partido Socialista or PS) has formally expressed reservations to the government regarding the new decree-law for the Single Social Benefit (Prestação Social Única or PSU). The party is questioning the proposed payment amounts and access criteria, signaling a potential push for a parliamentary debate on the matter.

Update: Socialists push for parliamentary debate on social benefit

The PS has now formally admitted it will force a parliamentary review of the decree-law. The party remains concerned that the proposed base value of 268.60 euros and new calculation rules could reduce support for some beneficiaries.

On the verge of compromising 620 million euros from the RRP, the Government swapped the understanding it had rehearsed with Chega for an agreement with the PS. The Single Social Benefit moved forward with the abstention of the socialist parliamentary group.

The governing Social Democratic Party (Partido Social Democrata or PSD) and the opposition Socialist Party (Partido Socialista or PS) have reached an agreement to create the Single Social Benefit (Prestação Social Única or PSU). The new benefit aims to consolidate 13 existing non-contributory subsidies. Prime Minister Luís Montenegro has appealed for a sense of responsibility from all parties to ensure the measure's success, while PSD parliamentary leader Hugo Soares confirmed that social work will remain mandatory for beneficiaries fit for work.

Update: Disagreement persists over mandatory social work

While the proposal has passed in committee, the PS now claims that mandatory social work has been dropped from the final plan. The PSD maintains that this activity remains a requirement for beneficiaries, dependent on individual assessment plans, leaving the exact status of the work mandate unclear.

A new OECD study indicates that Portugal ranks lowest in the European Union for the effectiveness of social welfare benefits in reducing poverty. The report highlights that the current system is overly complex and provides inconsistent work incentives, supporting the government's push to consolidate benefits into a Single Social Benefit (Prestação Social Única or PSU).

The government is seeking urgent approval for the new Single Social Benefit (Prestação Social Única or PSU), which will consolidate existing supports like the Social Insertion Income (Rendimento Social de Inserção or RSI). Under the proposed rules, beneficiaries who refuse job offers, training, or social solidarity activities will be barred from receiving the benefit for two years.