OECD criticizes Portugal's social support effectiveness
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 PSU (Prestação Social Única) is a proposed single social benefit designed to consolidate various existing welfare payments into one streamlined system. The goal of this reform is to simplify access to support, reduce administrative complexity, and improve work incentives for low-income households.
