New Government confirms €426 post-paro help

[Janet]

Despite the gloomiest of expectations given the change of Government and the economic crisis, Spanish Conservative Prime Minister Mariano Rajoy has announced that the Government is extending the 426€ post-paro basic 6-month assistance for the long-term unemployed. The announcement comes on the day that the previous scheme expires, and although the format will be modified in a way still to be announced, the basic financial aid remains in place. JA

[Guanche]

No doubt he will be able to pay this with the cash he gets from the forth coming EU bail out?

[Janet]

 The Government has increased to €450 the assistance given to the long-term unemployed whose unemployment benefit (paro) has ended and who have at least two dependants.  There is very little information about this at present, so it is unclear whether other conditions will apply, but the Ministerio de Empleo says that there will be a series of improvements and modifications to the plan. The measure will be approved this Friday in the Consejo de Ministros, and will be retroactively applied to 16 August. JA

[Guanche]

So it sounds like you have to have a partner and child before you get anything?

[Janet]

it's two dependants in addition to a partner/spouse ... doesn't specify it has to be a child.

[Nova]

it's two dependants in addition to a partner/spouse ... doesn't specify it has to be a child.

For those with a partner plus two dependants 450€ per month won't even cover the rent!  This came up at work today as we believe we are now seeing the effects of the end of paro entitlement.  This month saw the quietest paro day I have ever seen, we were even noticeably quieter on the days following.  The cash machine is paying out much less than usual.  People just have no money.......

[Delderek]

Are you guys saying, that if you have no work, and you are married with no children, you get absolutely nothing? No rent allowance. No hardship payment, No food stamps, If so, what on earth do they think will happen to the social fabric.?

[Janet]

That's exactly what we're saying.

There are "prestaciones", which are like grants for specific purposes, e.g. funerals (see HERE and HERE), but generally once your paro expires and the extra €400-odd for six months after the end of that, you're on charity.

[Nova]

Are you guys saying, that if you have no work, and you are married with no children, you get absolutely nothing? No rent allowance. No hardship payment, No food stamps, If so, what on earth do they think will happen to the social fabric.?

Basically, yes that's how it works here.  That's why there are instances of three generations squashing into the same house living off the grandparents' pension.  Many people are now dependent on family handouts.  Those with no family, or at least no family able to support them, must be facing a kind of Dickensian poverty.  It reminds us just how lucky we are....

[Delderek]

OK, so Paradise Island may not be that for all, but what do you residents think the future holds, given the economic situation that is getting worse as regards to employment etc.?