Inclusion Allowance: Correct Calculation Reveals the Accurate Amount

The Effectiveness of the Inclusion Allowance in Combating Poverty

The Inclusion Allowance is a measure that, similarly to the Citizenship Income, aims to counter poverty.
But does it succeed? Considering the current amounts granted, it rarely does, as the income threshold reached thanks to the monthly support is almost never sufficient for the family to escape poverty (or the risk of it).

According to the most recent data from INPS, the average Inclusion Allowance amounts to 620 euros per month.
In the best-case scenario, but it is very challenging to reach, one could receive 1,430 euros.

A Comparison with Absolute and Relative Poverty Thresholds in Italy

When talking about poverty, a distinction must be made between:

• Absolute poverty, in which an individual lacks the resources to purchase essential goods, such as housing expenses, healthcare, and clothing.
  The absolute poverty threshold varies depending on the cost of living in a specific area, the size of the family unit, and the age of its members.
• Relative poverty, which is determined by the percentage of individuals living in families with an available income below the conventional poverty threshold.

For instance, for a single-person family aged between 60 and 74 living in a municipality with more than 50,000 inhabitants, the minimum threshold to avoid absolute poverty is approximately 791 euros in Lazio, 901 euros in Lombardia, and 618 euros in Campania.

On the other hand, a family composed of two individuals between 30 and 59 years old, one child between 11 and 17 years old, and two children between 4 and 10 years old, should reach 1,799 euros in Lazio, 1,953 euros in Lombardia, and 1,575 euros in Campania to escape absolute poverty.

Generally, families with a monthly income below 1,245 net euros are at risk of relative poverty in Italy.

The Challenges of the Inclusion Allowance Amount

Considering the above, we can identify at least two issues with the Inclusion Allowance amount.
Firstly, it rarely reaches the threshold to lift the family out of relative poverty, as reaching 1,245 net euros is quite difficult.
Secondly, escaping absolute poverty is also challenging.

For example, a family with two adult members aged 30 to 59 and three minors, including one aged between 11 and 17 and two between 4 and 10, would receive 1,395 euros per month, combining the Inclusion Allowance and the Unique Allowance.
However, more than that is needed to avoid absolute poverty.

Even considering the additional 280 euros for rental reimbursement, the total income falls short of the required amounts in different regions such as Lazio, Lombardia, and Campania.

Moreover, the Inclusion Allowance lacks territorial differentiation, unlike the criteria used to establish the absolute poverty threshold.
A regional-based approach would be necessary to address cost-of-living discrepancies across Italy and ensure fairer support allocation.