The ombudsman invites the Latvian Saeima to reassess if it is truly socially responsible and rational to lower social aid for the poorest groups of residents in Latvia in this economically difficult time, as reported by the Ombudsman’s Bureau.
The ombudsman notes the changes would affect both the poor, including the recipients of the Guaranteed Minimum Income (GMI) benefit, and the underprivileged. He points out that the situation of these people would be aggravated by the planned amendments to the Law on Social Services and Social Assistance, which is part of next year’s state budget.
In the ombudsman’s opinion, raising the GMI threshold by two percentage points is generally positive, however, one can predict that it will still not provide a poor person with sufficient support for basic needs – especially food.
At the same time, the Ministry of Welfare emphasizes that there are other support measures available, such as grocery sets and ready meals – soup kitchen. However, the ombudsman notes that this aspect is also expected to undergo significant changes next year – in the future, a poor person will receive only one more set of food items per quarter. He also points out that it should be taken into account that the number of places for serving ready meals has not increased either – they are still less than half of all municipalities.
“I understand that by raising the guaranteed minimum income threshold, the Saeima hopes to fulfill the shortcomings previously identified by the Constitutional Court, however, I have reasonable concerns that there will be more money in the purses of the poor. Thus, the purpose of the Constitutional Court judgment will not be achieved. I believe that the financial capacity of the state cannot serve as the sole criterion when deciding on issues related to basic needs, such as the provision of food and housing,” says Ombudsman Juris Jansons.
Jansons also points out that the changes planned in 2025 in the calculation of housing benefit – reducing the coefficients will have a negative impact not only on low-income households, but also on a part of poor households. Especially people of retirement age or people with disabilities who live separately, the ombudsman points out.
Estimates from the ombudsman show that the support local governments provide people to help cover housing-related costs will go down.
As a result, the share of housing expenses that a person has to cover from their own income will increase. It follows from the legislator’s intention that the coefficients used to calculate the housing allowance have been reduced to compensate municipalities for the expenses incurred as a result of the increase in the GMI threshold. This has been done on the basis of the request of the Latvian Association of Local Governments, says Jansons.
The ombudsman expresses that he can agree with the Minister of Welfare that social support is not reduced in absolute amounts. However, in his opinion, in a situation of increasing living costs, this alone will be far too little for people to afford an honest and dignified life. “Changes in the calculation of the housing allowance and the provision of food parcels, along with other decisions in the field of social protection, will have a negative impact on the poorest people in Latvia. I hope for a sensible decision by Saeima members,” the ombudsman adds.
Jansons draws attention to the fact that statistics show that the last year, 2023, was particularly difficult in financial terms for families at risk, such as one adult with children. That is, 76% of households have been burdensome to cover housing expenses. Also, Jansons notes that the proportion of households whose housing maintenance expenses are an excessive financial burden has increased significantly – housing costs account for more than 40% of disposable income.
As reported, next year it is planned to raise the GMI threshold by 15 euros in Latvia, as provided for by the government-backed draft laws, which will still have to be decided by the Saeima together with the next year’s budget package.
As previously reported, due to austerity measures, people with low-income status will no longer receive food packages starting from next year, which will be available only to the needy and crisis-stricken residents of Latvia and Ukrainian refugees.