Spain’s Minister for Social Security, José Luis Escrivá, has said that Spain’s ‘minimum vital income’ payment will be sent to the most vulnerable households as soon as possible. News from the Prime Minister this weekend could see the payment received by some families within the next three weeks. Escrivá also claimed that the payment will remain in place after the Covid-19 crisis has passed, saying in an interview “It is going to be structural, permanent, it’s here to stay. It will be something new that social security has not offered so far and that we are trying to accelerate to the maximum.”
The crisis caused by the global pandemic has destroyed nearly 900,000 Spanish jobs since a state of emergency and the subsequent confinement were declared— a figure equivalent to the worst months of the 2008 economic crisis.
However, the government is keen to convey reassurance with regard to the economy and is seeking to start a cross party debate as soon as possible to discuss a new budget. Addressing the nation on Sunday through a televised video conference, Prime Minister Pedro Sánchez announced that the government is making an unprecedented effort to supply the regions with a €16 billion fund to be spent on health and education in the wake of the Covid-19 crisis.
Sánchez stated that beginning on June 26th, a total of 225,000 people will begin to receive payments from the new minimum vital income scheme. The scheme itself was actually agreed upon before Sánchez’ party, the PSOE, formed its coalition government with Unidas Podemos but has since been fast tracked given the vulnerability of many families facing poverty since the recent global pandemic and subsequent economic standstill. Sánchez said that at the end of June, 75,000 households (around 225,000 people, half of whom are minors) will receive the payment. The payment will eventually be rolled out to an estimated 850,000 households.
It should be noted that a “minimum vital income” is not the same as a universal basic income, which is granted without any conditions to every citizen. However, there is huge interest in the coalition government’s income scheme – Sánchez revealed that already there have been 21 million visits to the social security website for the scheme, indicating that there is a high level of interest from people in need of financial help caused by the lockdown situation in Spain.
The Minimum Vital Income (IMV) will be a means tested payment with a number of conditions for eligibility, according to the type of family or individual that will have the right to receive the benefit. The IMV amounts to €5,538 per year for a single adult. From that basis, additional factors are taken into account according to the family situation including additional family members, the number of children etc. A family of four could be paid a maximum IMV of €12,183.60.
The IMV has to be applied for through the Social Security office. A helpline has been set up to offer help and information about the payment – 900 202 222, 9am to 2.30pm Monday to Friday – and applications can be made from June 15th onwards. The social security website also offers a ‘simulator’ for individuals to check if they qualify for the payment and if so, how much.
During his video conference, Sánchez also mentioned mistakes made by Spanish authorities and focused on what has gone wrong over the last three months, as well as what lessons can be learned to improve the situation in the future. He was particularly critical of some regions which had made cuts to healthcare funding in recent years. He refuted claims made that the Spanish healthcare system is in disarray. “It’s just the opposite,” he said, “Spanish healthcare is even better than we thought, but we have discovered that it wasn’t being cared for as it deserved to be. We have seen the reaction when resources are injected, but we have also seen the wounds left behind by the cuts. No economic circumstances justify the mistreatment of our health system. That makes us weaker. It is the same for science. Society will demand a country in which science and research are strategic sectors.”
He also appealed to the young population of Spain to continue to observe social distancing measures in order to prevent a fresh wave of infection. “I am begging you, do it for yourselves and for everyone else,” he said, warning that “the risk is still out there,” and that the virus “could return.”