Four new Flash Reports prepared by the European Social Policy Network (ESPN) are now available and provide information on recent social policy developments in Germany, the Netherlands and the UK.

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Citizen’s income to replace basic income support for jobseekers in Germany

In its coalition agreement, the newly elected coalition government in Germany announced a reform of the basic income support for jobseekers. This most controversial social benefit is to be replaced by a citizen’s income, for which a number of key points have been agreed. Crucial questions remain unanswered for the time being.

The financial reform of German long-term care insurance

The shortage of skilled workers and the high financial burden on those in need of care are among the most pressing problems of long-term care in Germany. Against this background, the previous German federal Parliament passed a financial reform of the long-term care insurance system which has come into force in January 2022. The reform appears insufficient to substantially relieve the burden on those in need of care. Though it is likely to lead to higher wages in the long-term care sector, further increases are required to attract more nurses.

Housing crisis in the Netherlands

A critical shortage of affordable housing in the Netherlands is exacerbating and creating social exclusion; it is also increasing economic inequality between homeowners and renters. The main factors underlying this housing crisis include insufficient investment in social housing in the last decade, and soaring housing prices due to demographic developments, low interest rates and fiscal policy. The previous government took incremental measures, but did not provide a definitive solution. The new government, in place since January 2022, has announced several new measures.

Proposed social care reforms in England

The UK Government has published a number of plans for English social care. From April 2022 payroll taxes will rise by 1.25%. Until 2025 the additional revenue will be allocated mainly to the National Health Service; just £1 in £7 will go to social care. In England, from October 2023 new eligibility rules will raise the assets limits for public funding for care and limit lifetime individual liability for care costs to £86,000 (€102,270). As well as funding the cap on care costs, the new revenue will also fund increases in housing-based support and investment in the care workforce. However, the funding will generate much less than the amounts needed to overcome the crisis in the availability and quality of care; without improvements in recruitment and pay, an acute workforce shortage will also continue.