The European Parliament has requested the Commission to implement a pilot project, which will develop and test an innovative approach to promote more effective delivery, through E-pay cards, of welfare benefits to people in extreme poverty in combination with measures supporting their socio-economic advancement, with the aim to bridge their social isolation stemming from long-term poverty.
The project specifically develops and tests:
- smart activation measures, which may include, but are not limited to, capacity and capability building of participating families, supported by empowerment and advancement coaching, job training, economic and financial literacy courses:
- an enhanced delivery mechanism of existing welfare benefits provided by national or local authorities, which is:
- non-earmarked: recipients are not required to spend their welfare benefits in any specific way.
- unconditional: recipients do not have their welfare benefits withdrawn for any reason during the course of the pilot project.
- delivered through basic e-pay cards linked to a free or low cost bank account.
The project target:
- People living in extreme poverty, such as marginalized Roma, who face adversity in access to income/gainful employment opportunities, and to other inclusion opportunities.
- Local public administrations.
- Other relevant public authorities, financial intermediaries and social impact actors (service providers, businesses, foundations).