High energy prices, inflation, premium shock. None of this is cause for alarm for the Federal Council. The Bundesrat concluded that no action was necessary. He has therefore brushed aside proposals such as an energy bonus or an extra premium discount for low-income households. Again, the federal government is content to “observe” further developments.
A decision for which Caritas director Peter Lack (53) only shakes his head. “This is a slap in the face to the poor who are at risk of poverty in this country.” After all, it concerns about 1.3 million people. “The Bundesrat is doing too little to ensure that they can lead a dignified life.” From Lack’s point of view, this is all the more bitter because the federal government and the cantons have introduced innovative financial support measures during the corona pandemic when the general public was affected.
More poverty and debt
Lack knows what he’s talking about. The Caritas advice centers and the Caritas markets are facing a significantly higher inflow. “In stores it is 40 percent more.” The peak has not yet been reached.
“In 2023, when the utility bills and higher premiums come, things will really start to pour,” predicts Lack. “Then the difficult situation will worsen.” His aid organization fears “that many people will also fall into poverty or go into debt”.
three point plan
Action is all the more important now. “Effective tools are on the table, you just have to use them,” says the Caritas boss. To this end, he presents a three-point plan:
- Higher premium discount: The individual premium discount is one of the most effective instruments with a clear target group. “The federal government should raise the rate by 30 percent, and the cantons should follow suit,” says Lack. “That helps enormously, because the healthcare costs are a huge burden.” The measure would cost about one billion Swiss francs. The National Council gave the green light for this. The Council of States will decide on this in the winter session – although the deal could tip over.
- Full reimbursement of living expenses: The Federal Council wants to increase the AHV and IV pensions and supplements by 2.5 percent. But that’s not enough for Lack: “It needs full cost-of-living reimbursement across all social security systems.” The higher health insurance premiums, which were not included in the inflation calculation, should also be taken into account. “Effectively, it needs an increase of at least three percent,” says Lack. “The federal government needs to adjust accordingly.”
- Immediate help: Finally, Caritas also demands direct financial support for emergencies. “There are people who fall through the social safety net when they run out of money,” says Lack. It usually involves unplanned expenses – such as a dental bill, a new mattress, or even new clothes. “It often affects families and individuals on a tight budget who need help quickly and easily.” Cantons and municipalities should make extra money available for this.
Caritas is “bewildered”
Lack warns of much more expensive follow-up costs if nothing is done about it. Because if the money is no longer enough, one has to save elsewhere. “For people living in poverty, this often means that you have to save on food, so on healthy food.”
The situation has a particularly strong impact on children and young people when it is no longer enough for the holiday camp or the sporting activities. “That also means exclusion from social participation,” says Lack.
According to Caritas, there is a vicious circle that many find difficult to get out of. “We must prevent that”, emphasizes the director of the aid organization. “The fact that the Bundesrat is so casually brushing aside all measures is irresponsible and has left us baffled. We have to defend against that.”