PSD and PS reach deal on Single Social Benefit
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.
The Social Democratic Party ('Partido Social Democrata' or 'PSD') is a liberal-conservative political party in Portugal that is the leading partner of the The Democratic Alliance (AD) which is the country's ruling party, with Prime Minister Luís Montenegro.
The Social Democratic Party, despite its name, occupies the centre-right of Portugal's political spectrum. Luís Montenegro, who became Prime Minister in April 2024, leads Portugal's current minority government. The PSD has been one of Portugal's two dominant parties since 1974, having formed nine governments including four with absolute majorities. Montenegro, a former party leader from 1996-1999, was elected with the highest approval rating among party leaders at 10.7 points out of 20.
The Democratic Alliance is a centre-right coalition that includes the smaller CDS – People's Party, a Christian democratic party that has historically been the PSD's coalition partner. Together, they govern without a parliamentary majority, requiring case-by-case support from opposition parties to pass legislation.
Health cards are private membership or discount schemes sold by companies that offer access to consultations, tests or reduced fees at private clinics; they are not the public health service. The Socialist Party (Partido Socialista or PS) has proposed regulation to increase transparency and protect consumers from misleading marketing or unexpected charges.
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.
