Inclusion Allowance: New Requirements and Increased Funding Set for 2025

The Government’s Plans for Inclusion Allowance

The government is looking to broaden the scope of the Inclusion Allowance, as the current number of beneficiaries is significantly lower than the original projections.

As a result, the Budget Law 2025 might witness new measures regarding the Inclusion Allowance, potentially easing eligibility requirements for certain families and granting them access to this income support scheme.

Moreover, according to recent reports, the revision of the eligibility criteria for the Inclusion Allowance might also lead to an increase in the allowance amount itself.

Potential Changes in 2025

Following the financial tightening enacted by recent policies, the upcoming Budget Law could provide relief to families experiencing economic hardship, making it easier—and more advantageous—to apply for the Inclusion Allowance.

As mentioned by La Stampa, one option under consideration is to modify the eligibility criteria to expand the number of families who qualify.
Currently, approximately 700,000 families, particularly in Southern regions, receive this allowance, with an average payment of 617 euros.
However, the funds were originally allocated for a much larger number of beneficiaries, as the government appears to have underestimated the restrictive nature of some requirements.

Proposed Income Threshold Changes

Therefore, in 2025, a correction might be on the horizon, contingent on the government recovering around 200 million euros necessary to enhance this measure.
Specifically, discussions have focused on altering the income requirement: presently, the Inclusion Allowance is available only to families with an income below 6,000 euros, which can be adjusted for larger households using an equivalence parameter.

The most discussed reform option suggests raising the income threshold to 8,500 euros, potentially adding about 100,000 more families to the list of beneficiaries.

Other Requirements and Implications

As for other criteria, there would be no changes compared to the current system.
For instance, the property asset threshold would still include the primary residence if the ISEE value exceeds 150,000 euros.

However, increasing the income threshold would likely necessitate a corresponding rise in the benefit amount, unless the government imposes restrictions, which would be counterproductive.

Currently, the income limit also influences the benefit calculation, which is based on the maximum threshold minus the actual income received.

For example, a single-person household earning 2,000 euros monthly receives around 333 euros of Inclusion Allowance (calculated as 6,000 – 2,000, then divided by 12 months).

Raising the threshold to 8,500 euros while maintaining the current calculation reference (6,000 euros) doesn’t make sense.
For instance, a person earning 6,500 euros would be ineligible, equating to a benefit of zero.

Hence, any adjustments to the income limit should necessitate equivalent increases in the allowance amount.
For instance, a person with a 2,000 euro income could expect a monthly benefit of approximately 540 euros, translating to nearly 200 euros extra monthly.

More substantial benefits would be seen by larger families due to the equivalence parameter, possibly amounting to even greater support compared to the previous Citizenship Income scheme.
Yet, one must question if the Prime Minister, who advocated for the reduction of that program, is willing to reverse this stance.