January 20, 2023
Press release
The rising cost of living is the most pressing concern for 93% of Europeans, according to the latest European Parliament survey, which has a serious impact on the situation of people on low incomes, especially single parents, the elderly and young people. They are unable to cover basic needs such as heating their homes, buying food or paying their rent. Over the last year there was a 40 percent increase across Europe in the number of people seeking support from social service providers in the charity's network.
The European organizations Caritas Europa and Eurodiakonie are sounding the alarm: in one year there has been a 40% increase in the number of people seeking support from social service providers belonging to these organizations across Europe. The survey, which involved 18 European countries including the Czech Republic, shows that the current crisis in the cost of living has a serious impact on the situation of people on low incomes, especially single parents, seniors and young people. They are unable to cover basic needs such as heating their homes, buying food or paying their rent.
Caritas Czech Republic has also seen an increase in the number of clients contacting our staff with questions about help and support regarding energy costs. This increase is different for each of the services, but on average we can talk about a 25% increase. As for the structure, the largest portion was single parents (almost 100% increase), then the elderly and the Roma population (50% increase). It was these groups that often had the biggest problems with covering the increased costs, or these costs further aggravated their already difficult situation.
Increase in the number of homeless people
Locally, the number of people who become homeless and in need of support and assistance is increasing. Caritas Czech Republic responds to the above-mentioned increase in clients and demand for services. During winter, heated spaces are open for people in need in the form of crisis chairs at shelters for homeless people, the volume of food support, provision of clothing and hygiene increases. Our professional counselling centre workers have been trying to help those who have not yet lost their home with solving increased expenses for energy and housing, we also perceive an increased interest in providing debt counselling.
Increase in energy costs
Charity organizations themselves have also been affected by increased energy costs – up to 80% of them state that the increase in energy costs significantly affects the provision of services. The situation is further aggravated by inflation, which also increases the costs of organizations. How to solve this situation? In addition to consistent economical behaviour when it comes to energy consumption, the charity organizations actively address sponsors and submit requests for additional financing of service operations. In some cases, projects are being prepared to reduce the overall energy consumption and modernize premises from the IROP subsidy title. We notice a greater effort to support workers, who are now subject to higher demands and of who there is still a shortage in social services. There is often a risk of burnout due to overwork and mental stress in the profession. However, neither effective planning of working hours nor support from supervisors can fully solve the complex situation.
"Caritas Czech Republic is trying to support people who are in a difficult life situation in the current socio-economic crisis. In order to be able to carry out this work in the long term, it is necessary to ensure stable and adequate financing of social services, including the securing of decent wages for workers in the social sector," says Iva Kuchyňková, manager of social advocacy at Caritas Czech Republic.
"It is very important that our workers could see their hard work being paid off that and that their earnings cover basic needs, so that people can afford a well-deserved rest on vacation and are able to build up some financial reserves. Otherwise, there is a risk of demotivation in relation to work, which could subsequently cause considerable difficulties in further economic growth in the Czech Republic," adds Iva Kuchyňková.
The list of recommendations for the Czech government
We are convinced that only a systemic change in conditions will lead to an improvement of the situation. Therefore, we recommend the government of the Czech Republic to advocate for:
- Systematic, dignified and stable financing of the social sector workers, where it is necessary to ensure adequate conditions for the job performance and thus subsequently ensure assistance to people who have found themselves in a difficult situation due to adverse circumstances.
- It is necessary to change the method of financing social services as soon as possible and to strengthen personnel capacities.
It is important to adopt the directive on the minimum living wage as soon as possible, which the European Commission encourages us to do in order to prevent the deepening of poverty in the population.
And to speed up work on the ratification of the European minimum wage directive into Czech legislation.
- Ensuring a network of support and assistance that would reach all localities within the Czech Republic, especially in the form of field-based professional social-legal counselling.
- To allocate financial resources from the National Recovery Plan for preventive services too, especially for field-based expert advice.
To take steps to make housing in the country attainable at a reasonable price and adequate to the level of wages.
To adopt the Housing Support Act as soon as possible and continue to increase housing capacities for the needy.
- It is necessary to ensure the possibility of debt relief for all those who need it and are motivated to solve their situation. The sooner people return to normal life, find employment and leave the grey economy, the better and easier it will be to integrate them back into normal life; subsequently, they will also be able to pay taxes and insurance from their work.
To adopt an amendment to the insolvency law immediately so that it fulfils the conditions of ratification of the European directive, especially with regard to the condition of debt relief within three years.
- For those who are in an unfavourable situation, it is necessary to adjust the system of social benefits, which will immediately help people overcome the unfavourable situation, not only in the area of increased energy and housing costs, but also in case of job loss.
We recommend a comprehensive revision of the benefit system so that benefits reach the recipient at the moment when he or she actually needs them (it is not possible to wait for three months, for example), significantly simplify applications for their award, transfer the burden of proof from the applicant to e.g. the lessee, cohabiting person, so that the needy person is not prevented from claiming a specific social benefit, focus on the system of paying benefits so that they are paid on time and in the form that the person needs (by the National employment service cash desk, by post, etc.)
"We perceive these recommendations as a rudimentary brake against the rapid and massive impoverishment of the Czech population. Housing is the basic building block, only then can the difficult situation of an individual be solved," says Iva Kuchyňková.
"In order to maintain housing, a person needs a decent wage and, in the event that he/she cannot work, adequate social benefits, thanks to which he/she can maintain housing. If he/she is in debt, he/she needs help in solving the situation. For example, professional counselling in the field, which would be accessible to old, sick and disabled people.
We need expert counselling so that it is possible to support a person and help him/her solve the situation in time in the first place and thus prevent adverse long-term social impacts on the lives of individuals and entire families," concludes Iva Kuchyňková, manager of social advocacy at Caritas Czech Republic.
Caritas Czech Republic together with the company E.ON is preparing a project to help senior citizens and both complete and incomplete families, which will make possible to donate funds to those who cannot solve their situation in any other way (e.g. with the help of family, social benefits) in order to improve their unfavourable situation which occurred due to increased energy costs. E.ON will hold a special press conference on this project on Friday January 27.
Press contacts:
Iva Kuchyňková, manager of social advocacy in Caritas Czech Republic
e-mail: iva.kuchynkova@charita.cz, phone: +420 603 280 738
Jan Oulík, spokesperson in Caritas Czech Republic
e-mail: jan.oulik@charita.cz, phone: +420 603 895 984
- Caritas Europa document Survey on energy poverty/cost-of-living crisis