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🇧🇪 Belgium /Economy & Trade

Poverty organizations concerned about fiscal reform's impact on the most vulnerable

From VRT NWS · () Dutch

Translated from Dutch, summarized and contextualized by DistantNews.

At a glance

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  • Belgian anti-poverty organizations express concern over a recently approved fiscal reform that will tax living allowances and reduce unemployment benefits.
  • The reform, which makes living allowances taxable, is expected to disproportionately affect the most vulnerable citizens, making it harder for them to afford basic necessities.
  • Critics argue the reform also complicates the transition to work and reduces crucial financial breathing room for those receiving minimum unemployment benefits, exacerbating existing insecurities.

Belgian anti-poverty groups are sounding the alarm over a new fiscal reform passed by parliament, warning it will hit the most vulnerable citizens the hardest. The reform introduces taxes on living allowances and cuts fiscal benefits for unemployment. Caroline Van der Hoeven, coordinator for the Belgian Network Against Poverty (BAPN), stated that the impact of taxing living allowances, which are already below the European poverty line, will be significant. "People will find it even harder to make ends meet," she said, adding that individuals will face increased stress in providing food for their children and paying bills.

For people who are struggling, the consequences of their living allowance becoming taxable are very significant.

— Caroline Van der HoevenExplaining the impact of the fiscal reform on those receiving living allowances.

Van der Hoeven also highlighted concerns that the reform will make it more difficult for people to transition into employment. "The fiscal reform starts from the idea of increasing the difference between working and not working, but the step to work becomes more difficult," she explained. The reduction of fiscal benefits for minimum unemployment benefits, which are also below the poverty line, is another point of contention. BAPN argues these benefits provide essential breathing room and are not the "big gifts" they are sometimes portrayed as.

People experience even more stress to feed their children and pay their bills.

— Caroline Van der HoevenDescribing the increased financial pressure on vulnerable families.

The BAPN is particularly worried about the cumulative effect of these reforms. This latest measure follows previous changes, such as limiting unemployment benefits to 24 months and capping the jobseeker's allowance for recent graduates. "All reforms end up affecting the same category of people, the most vulnerable," Van der Hoeven noted. She stressed the uncertainty and anxiety this creates for individuals who struggle to understand the impact and find information about these changes.

The minimum unemployment benefit is also below the poverty line. These fiscal benefits can provide some breathing room for people and are certainly not big gifts as they are sometimes presented.

— Caroline Van der HoevenAddressing the reduction of fiscal benefits for unemployment.
DistantNews Editorial

Originally published by VRT NWS in Dutch. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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