Controversial Minimum Security Reductions Detailed by Ludwig in His Plan

Controversial Minimum Security Reductions Detailed by Ludwig in His Plan

In the coming year, the city of Vienna is set to implement a series of reforms aimed at reducing costs and improving integration into the job market. Here's what you need to know:

1. Vienna is planning to increase fees for waste, water, and other services, although the exact amounts have yet to be specified.
2. The city's annual allocation for the minimum security program stands at around 800 million euros. However, due to the reforms, up to 115 million euros less in support could be distributed.
3. A significant change in the minimum security program is the treatment of WGs (shared accommodations) and families. Currently, single persons living together in an apartment receive the maximum rate, while families in a common household do not. This is set to change, with WGs being treated similarly to families, which is expected to reduce costs.
4. Another key change is the potential mandatory attendance of kindergarten for three-year-olds. If implemented, this change would be gradual, taking into account the need for space and personnel. The debate about this proposal is ongoing, with discussions with the coalition partner, the NEOS, still in progress.
5. The reforms also aim to ease parents' integration into the labor market by introducing a compulsory kindergarten attendance from the age of three for children of minimum welfare recipients. Additionally, the city plans to reduce social welfare rates for these children by deducting part of the housing costs from their benefits, a practice previously only applied to adults.
6. The city expects to save around 20 million euros annually by applying the 25% adult reference amount for housing costs to children's rent subsidy.
7. The opposition parties have criticised Vienna for not making childcare subsidies progressive and for paying the same amount of support for each child regardless of the size of the family.
8. The plans for kindergartens are mid-term, and the price of Vienna's public transport annual pass is set to become significantly more expensive in 2026.
9. It's worth noting that the debate about minimum security includes criticism that prisoners in Vienna receive rent subsidy, with no indication of any change to this.
10. The city expects to save around 115 million euros annually through the reforms and already abolished allowances. The savings from the minimum security program alone could amount to around 75 million euros annually for needier communities in Vienna.
11. Mayor Michael Ludwig has advocated for the management of the minimum security program by the AMS, believing this would shift the focus more towards integrating beneficiaries into the job market.
12. The rent subsidy for children may have amounts intended for housing deducted from it, which could result in a family with five children seeing a reduction of around 400 euros per month in housing allowance, considering the already abolished training subsidy.

In summary, Vienna is implementing changes aimed at reducing costs and improving integration into the job market. These changes include increasing fees for city services, reforming the minimum security program, and introducing compulsory kindergarten attendance for three-year-olds, among others. The full impact of these changes remains to be seen, but they are expected to result in significant savings for the city's budget.

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