The system needs fixing, but not through a referendum

A referendum on requiring recipients of cash social assistance to perform community service has been described as a populist question that should not be put to a popular vote.

Among social security experts, the prevailing view is that the system needs analysis-based reform rather than a referendum. One problem is that some families can see their disposable income fall when they leave benefits for employment, especially when the new job is poorly paid.

A review published in August by the analysis and development service of the Ministry of Demography, Family and Social Affairs found that the interaction between the tax system and the social-transfer system can have negative effects on disposable income. The relevant components include social security contributions, taxes, cash transfers, and subsidies.

The article also notes that more than 72 percent of cash-assistance recipients last year were long-term recipients, meaning they had received the support for more than 24 months during the previous three years. It argues that such anomalies should be addressed through examination of the system, rather than through a referendum framed around compulsory community work.