Social Europe

  • EU Forward Project
  • YouTube
  • Podcast
  • Books
  • Newsletter
  • Membership

The Case For Universal Support For European Families

Daphne Ahrendt 1st February 2016

Daphne Ahrendt

Daphne Ahrendt

Austerity measures introduced during the crisis have disproportionately concerned cuts in the measures that are most vital for reducing child poverty: cash and tax benefits, a new Eurofound report shows. Furthermore, there has been a move away from universal coverage towards more targeted support. Of course, it makes good sense for governments to target spending on the most deprived families in a period of austerity. But at some point the pendulum can swing the wrong way and families that, under the principle of universality, were eligible for support may lose out, putting more families at risk of poverty than before.

It should be said that the principle of universality prevailed during the crisis as universal cash benefits still represented more than half of the social expenditure on families in the EU, followed by universal benefits in-kind such as childcare services (the figures are for 2011, the latest year for which data was available at the time of writing the report). Means-tested cash benefits and means-tested benefits in-kind represented less than one-quarter of the total social expenditure on families. Although universal support remained the preferred approach over targeted help in most Member States, how countries support families varies strongly.

No surprises here: the three Nordic countries (Sweden, Finland and Denmark) did best. There, support for families was universal and Sweden and Finland offered families a perfect mix of cash and in-kind support (in Denmark the scale tipped in favour of universal in-kind benefits).

Table 1 shows the countries belonging to our four family policy country groups which Eurofound developed to account for large differences in family policy pathways in Europe. The countries belonging to Group 1 most enable families to move away from the traditional ‘breadwinner’ model, where it is the mother who stops working or reduces her hours to look after the children; in countries belonging to Group 4, family policies are most limiting in this regard.

Table 1: Eurofound family policy country groups

eurofound

Figure 1 below shows the structure of social expenditure on families for these four groups of EU Member States. As can be seen, universal support is the norm in Group 1 countries with a good balance between cash and in-kind benefits. While universal support is also the norm in Group 2 countries, in-kind benefits are far less common and these countries are much more like the two groups with more limiting family policies.

Fig. 1: Structure of social expenditure on families by country groups (2011, %)

eurofound2



Don't miss out on cutting-edge thinking.


Join tens of thousands of informed readers and stay ahead with our insightful content. It's free.



Source: Own calculations based on ESSPROS

These expenditure patterns are to some degree mirrored in the extent to which different types of families report difficulties making ends meet. As figure 2 below shows, on average, the family types in the countries with more ‘enabling’ family policies (Groups 1 and 2) report fewer difficulties than those in the countries with more ‘limiting’ family policies (Groups 3 and 4).

Figure 2: ‘Difficulties making ends meet’ rate by family type and country group, 2012 (%)

eurfound3

However, analyses from Eurofound’s 2nd and 3rd wave of the European Quality of Life Survey (fielded in 2007 and 2011/2012, providing insight into the economic and social changes occurring in Europe during the crisis) show that the share of lone parent families in Group 1 and Group 2 countries that reported difficulties making ends meet increased significantly (it doubled in Group 1 countries from 22% to 44% and rose from 37% to 50% in Group 2 countries). Although at 63% and 67%, respectively, the situation in Group 3 and Group 4 countries is still worse, the differences between more ‘enabling’ countries and more ‘limiting’ countries in 2012 are far less extreme than they were in 2007.

The Case Of Finland

What could explain this shift? One explanation lies in the change in policy pathways that is noted in some of the Group 1 countries. What’s happening in Finland provides some insights. After a number of expansionary measures that did not indicate an ‘austerity pathway’, the situation in Finland has recently changed. The low overall poverty rate among Finnish families is in part the outcome of a universal child benefit allowance that has long been viewed by experts and recipients alike as playing an important role in preventing it. The question is whether the low poverty rates in Finland will be maintained now that child benefit has been cut and the new government programme envisages further cutbacks in family policy. Experts expect the reductions to hit family income with higher poverty rates a likely outcome. This is aggravated by the fact that family transfers were not indexed until 2011, so their purchasing power had already declined. Already, there is some evidence in the statistics: the latest available Eurostat figures (2014) reveal a decrease in real gross disposable household income (GHDI).

The Case For Universal Support

At the same time, means-tested social assistance in Finland has gradually been increased since 2011. Research in Finland has found a link between the gradual increase in the amount of social assistance and the economic wellbeing of families in the lowest income quintile. This link suggests that these increases have been an effective countermeasure to poverty among the lowest income families.

Whilst means-tested support is a good way to help the most vulnerable, the trend among EU Member States to move away from universal support and towards more targeted support needs to be monitored precisely because of what is happening in Finland. The changes there represent a major shift in policy orientation. The Finnish proposal to restrict entitlement to public childcare is further evidence of this shift.

Work-life Balance Initiatives Are Less Affected

Eurofound’s report also contains good news: during the crisis years the focus on work-life balance has been maintained. The report, which looks at what countries did for European families since 2010 in response to the crisis, highlights that across the EU measures have been introduced to help people better combine work and family life. Several examples of these good practices are identified: e.g. the daycare centre and kindergarten funding scheme set up in Greece to provide affordable childcare service, the expansion of childcare services in Poland and new variants introduced in Austria giving parents more options to take parental leave. Aside from these work-life balance measures, the report identifies a number of other policy measures that appear to work in avoiding poverty or social exclusion for families with dependent children.

Daphne Ahrendt

Daphne Ahrendt joined Eurofound’s Living Conditions and Quality of Life Unit as a research manager in January 2013. Her current research activities focus on families in the economic crisis, social mobility and in-work poverty. She is also involved in preparing the fourth wave of the European Quality of Life Survey, which she has worked with since 2003, contributing to the design of the questionnaire and the management of the survey.

Harvard University Press Advertisement

Social Europe Ad - Promoting European social policies

We need your help.

Support Social Europe for less than €5 per month and help keep our content freely accessible to everyone. Your support empowers independent publishing and drives the conversations that matter. Thank you very much!

Social Europe Membership

Click here to become a member

Most Recent Articles

u4219834675 4ff1 998a 404323c89144 1 Why Progressive Governments Keep Failing — And How to Finally Win Back VotersMariana Mazzucato
u42198346ec 111f 473a 80ad b5d0688fffe9 1 A Transatlantic Reckoning: Why Europe Needs a New Pact Beyond Defence SpendingChristophe Sente
u4219834671f 3 Trade Unions Resist EU Bid to Weaken Corporate Sustainability LawsSocial Europe
u421983467 9c73 b24a0b674750 1 The West’s Defence Now Depends on Trump’s Mood SwingsStefan Stern
u4219834674735ecb6fd43 0 The Dark Side Of The Boom In Last-Mile LogisticsSilvia Borelli

Most Popular Articles

u4219834647f 0894ae7ca865 3 Europe’s Businesses Face a Quiet Takeover as US Investors CapitaliseTej Gonza and Timothée Duverger
u4219834674930082ba55 0 Portugal’s Political Earthquake: Centrist Grip Crumbles, Right AscendsEmanuel Ferreira
u421983467e58be8 81f2 4326 80f2 d452cfe9031e 1 “The Universities Are the Enemy”: Why Europe Must Act NowBartosz Rydliński
u42198346761805ea24 2 Trump’s ‘Golden Era’ Fades as European Allies Face Harsh New RealityFerenc Németh and Peter Kreko
startupsgovernment e1744799195663 Governments Are Not StartupsMariana Mazzucato
u421986cbef 2549 4e0c b6c4 b5bb01362b52 0 American SuicideJoschka Fischer
u42198346769d6584 1580 41fe 8c7d 3b9398aa5ec5 1 Why Trump Keeps Winning: The Truth No One AdmitsBo Rothstein
u421983467 a350a084 b098 4970 9834 739dc11b73a5 1 America Is About to Become the Next BrexitJ Bradford DeLong
u4219834676ba1b3a2 b4e1 4c79 960b 6770c60533fa 1 The End of the ‘West’ and Europe’s FutureGuillaume Duval
u421983462e c2ec 4dd2 90a4 b9cfb6856465 1 The Transatlantic Alliance Is Dying—What Comes Next for Europe?Frank Hoffer

Foundation for European Progressive Studies Advertisement

Spring Issues

The Summer issue of The Progressive Post is out!


It is time to take action and to forge a path towards a Socialist renewal.


European Socialists struggle to balance their responsibilities with the need to take bold positions and actions in the face of many major crises, while far-right political parties are increasingly gaining ground. Against this background, we offer European progressive forces food for thought on projecting themselves into the future.


Among this issue’s highlights, we discuss the transformative power of European Social Democracy, examine the far right’s efforts to redesign education systems to serve its own political agenda and highlight the growing threat of anti-gender movements to LGBTIQ+ rights – among other pressing topics.

READ THE MAGAZINE

Hans Böckler Stiftung Advertisement

WSI Report

WSI Minimum Wage Report 2025

The trend towards significant nominal minimum wage increases is continuing this year. In view of falling inflation rates, this translates into a sizeable increase in purchasing power for minimum wage earners in most European countries. The background to this is the implementation of the European Minimum Wage Directive, which has led to a reorientation of minimum wage policy in many countries and is thus boosting the dynamics of minimum wages. Most EU countries are now following the reference values for adequate minimum wages enshrined in the directive, which are 60% of the median wage or 50 % of the average wage. However, for Germany, a structural increase is still necessary to make progress towards an adequate minimum wage.

DOWNLOAD HERE

S&D Group in the European Parliament advertisement

Cohesion Policy

S&D Position Paper on Cohesion Policy post-2027: a resilient future for European territorial equity

Cohesion Policy aims to promote harmonious development and reduce economic, social and territorial disparities between the regions of the Union, and the backwardness of the least favoured regions with a particular focus on rural areas, areas affected by industrial transition and regions suffering from severe and permanent natural or demographic handicaps, such as outermost regions, regions with very low population density, islands, cross-border and mountain regions.

READ THE FULL POSITION PAPER HERE

ETUI advertisement

HESA Magazine Cover

With a comprehensive set of relevant indicators, presented in 85 graphs and tables, the 2025 Benchmarking Working Europe report examines how EU policies can reconcile economic, social and environmental goals to ensure long-term competitiveness. Considered a key reference, this publication is an invaluable resource for supporting European social dialogue.

DOWNLOAD HERE

Eurofound advertisement

Ageing workforce
The evolution of working conditions in Europe

This episode of Eurofound Talks examines the evolving landscape of European working conditions, situated at the nexus of profound technological transformation.

Mary McCaughey speaks with Barbara Gerstenberger, Eurofound's Head of Unit for Working Life, who leverages insights from the 35-year history of the European Working Conditions Survey (EWCS).

Listen to the episode for free. Also make sure to subscribe to Eurofound Talks so you don’t miss an episode!

LISTEN NOW

Social Europe

Our Mission

Team

Article Submission

Advertisements

Membership

Social Europe Archives

Themes Archive

Politics Archive

Economy Archive

Society Archive

Ecology Archive

Miscellaneous

RSS Feed

Legal Disclosure

Privacy Policy

Copyright

Social Europe ISSN 2628-7641

BlueskyXWhatsApp