Social Welfare Report 2010 - Wien · · 2013-09-26Project and editorial team: Alexandra Aschauer, ... 1.3 Employment and labour market trends ... Summary of the Vienna Social Welfare

Summary of the Vienna Social Welfare Report 2010

German version Sozialbericht 2010:

Wiener Sozialpolitische Schriften Band 2

Ed.: Municipal Department 24

Summary of the Vienna Social Welfare Report 2010 Administrative Group for Public Health and Social Affairs

Vienna, November 2011

Published by:

Municipal Department 24 – Health Care and Social Welfare Planning A-1080 Vienna, Buchfeldgasse 6

Project and editorial team:

Alexandra Aschauer, Ulli Böhm, Uschi Ganal, Susanne Guld, Robert Klaps, Bernhard Mager, Gerald Sirlinger, Kurt Sorgner, Peter Stanzl, Sonja Österreicher, Norbert Regitnig-Tillian

In cooperation with:

Municipal Department 5, Municipal Department 40, Vienna Social Welfare Fund, and many others

Translation:

Sylvi Rennert

Scientific advisors:

L & R Social Research

Project managers:

Peter Stanzl, Susanne Guld

Graphic design and layout:

Dietmar Stiedl

Cover photo:

Images.com/Corbis/Bernard Bonhomme

online: http://www.wien.gv.at/gesundheit/einrichtungen/planung/index.html

© MA 24, Gesundheits- und Sozialplanung 2011

Table of Contents

Table of Contents

Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

1. The Social Situation in Vienna . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

1.1 Demographic development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

1.2 Education and training . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

1.3 Employment and labour market trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

1.4 Income distribution and poverty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

1.5 Women and men in Vienna . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

2. Social Security and Welfare System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

2.1 Welfare in Austria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

2.2 Social expenditure in Austria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

2.3 Social expenditure in Vienna. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

2.4 Political system and administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

2.5 Organisation of the Vienna social welfare system . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

3. Welfare Benefi t in Vienna. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

3.1 Objectives and target group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

3.2 Introduction of the means-tested basic benefi t. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

3.3 The organisation of welfare assistance in Vienna. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

3.4 Benefi ts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

3.5 Developments in welfare benefi t. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

3.6 Expenditure/budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

4. Vienna Basic Welfare Support . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36


4.2 Vienna Basic Welfare Support Act. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

4.3 Organisation of basic welfare support. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

4.4 Benefi ts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

4.5 Developments in basic welfare support . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

4.6 Expenditure/budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

5. Vienna Debt Counselling Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40


5.2 Organisation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

5.3 Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

5.4 Developments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41


6. Services for Homeless People in Vienna . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43


6.2 Innovations and legal basis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

6.3 Organisation and services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

6.4 Developments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45


6.6 Measures for securing tenancy as a steering instrument. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

Summary of the Vienna Social Welfare Report 2010 4

Table of Contents

7. Services for People with Disabilities in Vienna . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49


7.2 Vienna Equal Opportunities Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50

7.3 Organisation of the Vienna Disability Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50

7.4 Services and developments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51


8. Home Care and Nursing Services in Vienna . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57


8.2 Innovations and organisation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58

8.3 Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59

8.4 Developments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61



Introduction

Introduction

Providing a social safety net for the population has always played a very important role in Vienna. Its innovative and modern social welfare system supports people in difficult times in their life and prevents social exclusion.Vienna offers a wide range of services that provide help in case of illness, social or financial emergencies, or when there is a need for nursing or child care, as well as support for people with disabilities and assistance for homeless people. Exact planning is indispensable in order to provide sufficient support with an adequate quality and quantity of services.

Vienna’s social welfare planning has been the responsibility of Municipal Department 24 since 2006. Relevant data are collected, evaluated and interpreted as a basic prerequisite for reliable requirements forecasts.The department also cooperates closely with the operative departments and organisations to develop meaningful indicators and models in order to be able to meet the challenges of today and tomorrow.

On occasion of the 2010 European Year for Combating Poverty and Social Exclusion, these findings and the objectives, strategies, methods, and measures of Vienna’s social policy were presented to the public in the first Vienna Social Welfare Report 2010. The objective of the report is to provide the interested public with an overview of the social situation, the services and measures, and Vienna’s specific challenges. In order to make this knowledge available to an international audience, an abridged version of the report was translated into English for this publication.

Vienna’s social welfare system This Summary of the Vienna Social Welfare Report 2010 is mainly dedicated to the core services of social welfare. This includes the means-tested basic benefit with its financial benefits and support measures, disability and homeless services, home care and nursing services, basic welfare support for aliens in need of protection, and debt counselling.

With the merging of health and social welfare in the 2004 structural reform, these areas all became part of the portfolio of the Executive City Councillor for Public Health and Social Affairs. Her department has a total budget of some three billion euro, nearly a third of the overall budget of the City of Vienna. In 2009, €1.06 billion were spent on social welfare and security for the people of Vienna. The budget for 2010 was 1.14 billion – more than ever despite the economic crisis.

In this report The introduction on the social situation describes the general social and economic situation in Vienna using indicators from demographic development, education, the labour market, and the distribution of income and poverty. It also looks at the sometimes very different realities of life of women and men in Vienna.

As the majority of social welfare benefits in Austria are federal and insurance benefits, chapter two provides a brief overview of the structure and organisation of the Austrian welfare system. Provincial benefits are usually subordinate


Introduction

and can only be claimed once insurance and federal benefits have been ex-hausted.

The subsequent chapters describe the core social welfare services and benefits, starting with means-tested basic benefit, followed by basic welfare support, debt counselling, homeless services, and disability services, and concluding with home care and nursing services. The focus is on extramural social assistance, as the introduction of the means-tested basic benefit on 1 September 2010 changed the system fundamentally.


8

The Social Situation

in Vienna

Chapter 1

dig

ital

stoc

k: A

rTo


Year

Pers

ons

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

0 1970 1975 1980 1985 1990 1995 2000 2005 2008 2010 2015 2020 2025 2030

60 to 79 years 399,370 383,405 327,141 305,897 279,684 255,198 265,364 285,589 294,506 302,014 320,276 341,415 361,785 389,192

80+ years 50,519 55,320 61,591 70,128 76,739 77,994 65,705 76,757 80,329 80,394 76,605 84,160 105,589 117,159

Fig. 2: Development of the 60 – 79 and 80+ age groups, 1970 – 2030 (Vienna) Sources: Statistics Austria, calculations by Municipal Departments 5 and 24

▷ Vienna is not only growing; what was the oldest Austrian province in 1970

is now becoming the youngest.

The Social Situation in Vienna

1. The Social Situation in Vienna

CHANGE PROCESSES IN OUR SOCIETY are not only happening at an ever fast-er pace, but are also increasingly influenced by global events and conditions. The Western industrialised countries are now also experiencing fundamental social changes. Longer life expectancy accompanied by sinking birth rates, increasingly diverse ways of living, migration, growing flexibility on the labour market, and rising unemployment rates are just some of the factors that have considerably changed the social structure. The general growth in prosperity of the 1960s and 1970s was replaced by increasing social imbalances by the end of the 20th century. Since then we have seen an increase in poverty, which is not only a challenge for the federal government, but also requires the subsidiary systems of the Austrian federal provinces to continuously expand their social infrastructure.

1.1. Demographic development

DEMOGRAPHIC DEVELOPMENT is a key indicator for social policy. Rising life expectancy, sinking birth rates, a high-er share of senior citizens in the total population, new forms of families, and migration also have an influence on the need for social welfare services.The population of Vienna is currently around 1.7 million, and is expected to exceed the 1.9 million mark in 2030.

Vienna has a steady influx of immigration; its population is therefore growing and also becoming younger on average than the overall Austrian population.Vienna is on its way to becoming the federal province with the youngest population in Austria. Nevertheless, the older age groups will also continue to grow in the coming years.The 60 to 79 age group has already grown by approximately 14% since 2000, while the

1,400,000

1,500,000

1,600,000

1,700,000

1,800,000

1,900,000

2,000,000

Year

Pers

ons

Vienna’s population (annual average)V

1970 1975 1980 1985 1990 1995 2000 2005 2008 2010 2015 2020 2025 2030

Fig. 1: Demographic development, 1970 – 2030 (Vienna) Sources: Statistics Austria, edited by Municipal Departments 5 and 24

increase in the 80+ group was 22%. The number of Viennese residents 80 or above will grow from currently approximately 80,000 to 117,000 by 2030.

▷ The growing number of elderly people

and changes in family structures and the labour market pose new

challenges for the entire social system.


140,000

120,000

100,000

80,000ns

Pers

o

60,000

40,000

20,000

0

EU 14 EU-10

(accession 2004)

EU-2 (accession

2007)

U other European countries

hh Turkey Asia Africa

America, Australia, Oceania

stateless, N/A

2002 26,857 24,125 6,340 121,142 39,206 22,887 8,282 5,545 3,153

2009 47,161 44,988 17,442 128,583 41,130 33,393 11,511 8,089 5,530

Nationality

Fig. 3: Vienna’s population without Austrian citizenship, 2002 and 2009 Sources: Statistics Austria, calculations by Municipal Department 5


A look at the demographic development by citizenship shows that the largest group of Viennese who are not Austrian citizens are nationals of European non-EU countries at 128,600 (the largest among them Serbia and Montenegro). The second-largest group are EU citizens at 110,000.

Over the last years, there have been fundamental changes in immigration to Vienna in regard to the countries of origin. Since 2002, the number of people living in Vienna who are from European non-EU countries has only increased by 6% and the number of Turkish citizens has grown by less than 5%, but the number of EU citizens has nearly doubled over the last seven years. Immigration from within the EU now considerably exceeds that from other countries. Immigration from Asia, the Americas, Australia, and Oceania has also seen a significant increase since 2002, but the absolute numbers remain low.

In total, the number of Viennese residents who are citizens of other countries has increased from 257,500 to nearly 338,000 over the last seven years, while there has been a marked decrease in naturalisations.

44% of the population of Vienna have a migration background; i.e., they were either born abroad, are foreign nationals, or at least one of their parents immigrated to Austria.

It is for them that the Vienna Integration and Diversity Plan was designed, which stands on the four pillars of language, education & work, neighbourly living, and measurability.

1.2. Education and training

THE CURRENT EDUCATION SYSTEM causes an unequal distribution of opportunities. A low level of education considerably reduces an individual’s opportunities on the labour market and is a barrier to entering working life. People with low qualifications have a higher risk of unemployment and poverty and very often need social welfare assistance.Vienna seeks to counteract these developments with various measures to the extent possible within its competence as a federal province. Some examples are the introduction and expansion of free kindergarten care and all-day school, learning and play clubs during school holidays, and advice, training and support for employees, unemployed people, and people disengaged from the labour market.

▷ There has been a decline in

naturalisations in recent years.

▷ Education opportunities in Austria

are not distributed equally. The structure of the Austrian education system furthers social imbalances.



Education opportunities in Austria

Education opportunities are not distributed equally in Austria. The social background and migration background have a significant impact on a person’ s education opportunities. This is closely linked to the structure of the Austrian education system, which stands out in international comparison because of some special characteristics. There is a relatively short primary school of only four years, after which children are separated at an early age into secondary modern school/ the “new middle school” or the eight-year secondary school. This system sets the course of a child’s future education at the age of ten years. The Austrian system is also very vocationally oriented and offers a wide range of apprenticeships and VET schools. Internationally, the focus is more on a balanced general education. Another typical feature is that the majority of compulsory schools are half-day schools only, which require more efforts by the parents due to a lack of after-school or learning clubs and all-day schools.

The level of education in Vienna is higher than the Austrian average. The Austrian capital has 22% university graduates, which is considerably higher than the national average of 14%. For 60%, secondary schooling is the highest attained level of education (Austrian average 68%), and some 18% only have compulsory education or lower (similar to the national average).

In Austria, the parents’ level of education has a strong influence on the education of their children. While approximately 43% of children of university graduates attain a university degree, this is true for only 10% of people whose parents’ highest level of education is compulsory schooling. Nevertheless, 57% of Austrian university graduates have achieved a higher level of education than their parents, thus bettering their education status1.

Some groups of immigrants have a lower level of education than Austrians, while others have a considerably higher one. EU citizens (in particular Germans) have a significantly higher level of formal education than Austrian citizens: 35% of German immigrants hold a tertiary education degree2 (only 13% of Austrians). The situation is different with immigrants from former Yugoslavia and Turkey. 40 –52% of people from the countries of former Yugoslavia have no more than compulsory schooling, while for Turkey the share is 76%. In compa rison, the share of Austrian citizens with compulsory schooling only is approx. 16%.

1 Unfortunately, there is no comparable data for Vienna. 2 Tertiary education degrees are degrees acquired at universities, academies, and other

comparable institutions of higher education.

▷ Some immigrants have a lower level

of education than Austrians, while for others it is considerably higher.


Fig. 4: Population aged 25 to 64 by level of education, 1981 – 2006 (Vienna - Austria) Sources: Statistics Austria, edited by Municipal Department 5

1981 1991 2001 2006

Shar

e of

the

popu

latio

n

Year

0%

10%

20%

30%

40%

50%

60%

70%

university degree Austriauuniversity degree Viennau

secondary education Austriassecondary education Viennas

compulsory education Austriaccompulsory education Viennac


▷ Income strongly depends on the level of education.

▷ The number of employment

contracts in Vienna is growing. However, this is mainly due to in

creases in new forms of employment.

VIENNA HAS A HISTORICALLY DEVELOPED economic structure that differs from the general Austrian economic landscape in that the production sector has diminished while the service sector has grown. This structural change has a parti cular impact on the need for employees and, consequently, on the development of unemployment figures. It has also led to a loss of low-qualified jobs. Vienna is also the province with the largest fluctuations in the active labour force. Non-standard forms of employment are strongly on the rise, which causes some employees to drop out of the social security system.A growing number of very low-paid jobs also means that there is an increasing number of working poor, who cannot obtain adequate means of subsistence despite employment.

After several years of stagnation, the number of gainfully employed persons in Vienna is now growing slightly. However, this can in large part be attributed to the increase in new employment forms (freelance employment contracts, minimal freelance employment contracts, and minimal employment).The share of regular employment contracts (full and part-time work with full social insurance contributions) in the total number of employment contracts has di-min ished continuously over the last years. While in 2000, the share was 94%, it had sunk to 90% by 2009. The remaining 10% are made up of new forms of employment.


0%

20%

40%

60%

80%

100%

Germany other EU-27

Poland Austria Bosnia and HerzegovinaNationality

Croatia other countries

TurkeySerbia, Montenegro

Leve

l of e

duca

tion

of re

spon

dent

s

compulsory education secondary education tertiary education

5.8

58.8

35.4

10.8

59.0

30.2

13.0

74.4

12.6

16.4

70.8

12.8

40.1

57.3

2.6

41.4

54.2

4.4

42.3

38.9

18.8

52.4

46.1

1.5

76.0

21.7

2.3

Fig. 5: Level of education of the Austrian population aged 25 to 64 by nationality Source: Statistics Austria – Bildung in Zahlen 2007/2008

The level of education has a signifi cant impact on the level of income. This close relationship is clearly illustrated by comparing income by level of education. Men with compulsory schooling or lower have an average gross income of € 1,600/month, while men with a university degree earn an average of € 3,500/month (gross income). The pattern is similar for women; however, there is a considerable gender pay gap (cf. I.5.).

1.3. Employment and labour market trends

900,000

850,000

cont

ract

s

800,000

750,000

men

tEm

ploy

700,000

650,000

600,000 19991999 20002000 20012001 20022002 20032003 20042004 20052005 20062006 2007 2007 20082008

Employees – new forms of employment 47,966 52,240 54,741 56,614 70,769 74,064 76,533 77,815 79,996 86,489

Employees – regular employment

772,976 770,660 767,491 757,869 759,604 753,516 756,506 763,607 774,137 789,251

Year


Looking at weekly working hours, there has been a reduction in fulltime employ ment and an increase in part-time employment. The share of part-time work has seen a simi lar development in the rest of Austria as well; the main differences are visible in the gender distribution (cf. I.5.). According to the results of the Labour Force Survey, the share of part-time work in Vienna in 2008 was 23.1% (Austrian average: 23.3%).

The structure of Vienna’s economy and labour market is markedly different from the rest of Austria due to its stronger focus on the service sector. While 83% of Vienna’s gross regional product is generated on the service sector, the share is only 63% in the rest of Austria.

The development of unemployment figures follows a similar trend in Vienna as in Austria overall, although at a higher level. After a marked reduction to 7.2% from 1999 to 2000, unemployment rose until 2004, when it reached its highest recent level at 9.8%. It then sank again and reached 7.8% in 2008. Compared to Vienna, the national unemployment average increased by less until 2005 and then saw a lower reduction until 2008.The figures for 2009 show an increase compared to the previous year as a result of the economic crisis. The national increase by 1.4 percentage points was twice as high as in Vienna (0.7 per centage points). For 2010, there is a slightly divergent development of unemployment in Vienna and Austria: the national unemployment rate sank by 0.3 percentage points, while Vienna continued to see a slight increase in unemployment (by 0.1 percentage points).

Fig. 6: Development of regular and new forms of employment, 19992008 (Vienna) Source: Association of Austrian Social Security Institutions

▷ Unemployment in Vienna is above the national average and has grown more

and declined less in recent years. During the crisis, however, Vienna had the lowest increase in unemployment.


Austria

Vienna

Year

Regi

ster

ed u

nem

ploy

men

t

1999 2000 2001 2002 2003 2005 2006 2007 20102009

8.1% 7.2% 7.6% 9.0% 9.5%

2004

9.8% 9.7% 9.3% 8.5%

2008

6.7% 5.8% 6.1% 6.9% 7.0% 7.3% 6.8% 6.2% 6.9%7.2%7.1% 5.8%

7.8% 8.6%8.5%

0%

2%

4%

6%

8%

10%

Fig. 7: Comparison of unemployment rates, 1999 – 2010 (Vienna - Austria)Sources: Public Employment Service, edited by Municipal Departments 5 and 24


MOST BENEFITS PROVIDED BY THE CITY OF VIENNA are means-tested, i.e., their size depends on the income. As a result, the income situation in Vienna has a profound impact on the amount of benefits claimed. The development of unemployment benefit and emergency welfare benefit rates and of income from employment are important factors in this context.

The income gap between high-wage and low-wage earners has been growing since the mid-1990s. Dividing the population into quintiles, the two upper (high-income) quintiles have seen an increase, while the remaining three in five Austrians have experienced a reduction of their share in total wages.The highest losses (12%) were in the lowest income quintile. This means that there is a change in the distribution of wages that affects the low-income groups the most.

▷ Low wages and low insurance

benefits cause a higher need for provincial social welfare benefits .

1996 2001 2006 Change

1996 – 2006 Change

2001 – 2006 1st quintile 2.9% 2.5% 2.2% –24.14% –12.00%

2nd quintile 10.8% 10% 9.5% –12.04% –5.00%

3rd quintile 17.6% 17.4% 17.1% –2.84% –1.72%

4th quintile 24.1% 24.3% 24.5% 1.66% 0.82%

5th quintile 44.7% 45.8% 46.7% 4.47% 1.97%

Table 1: Development of (gross) income shares in total wages, 1996 – 2006 Source: Austrian Institute of Economic Research (WIFO)


The analysis of unemployment fi gures for Vienna shows that the number of persons participating in labour market qualifi cation measures (who are not included in the unemployment statistics in Austria) has increased continu-ously from 1999 to 2006 and was three times the level of 1999 in 2010. When persons currently in training measures are added to the number of unemployed, the total for 2010 is 100,023 persons, which exceeds the previous record high from 2005.

unemployed in training measures

registered unemployed persons

Year

Pers

ons

1999 2000 2001 2002 2003 2005 2006 2007 20102009

68,386 59,656 63,463 74,894 79,872

2004

82,025 81,436 78,088 72,264

2008

7,567 9,487 10,083 10,517 13,025 17,686 19,501 18,799 25,84422,81014,405 18,156

66,487 74,17973,052

0

20,000

40,000

60,000

80,000

100,000

120,000

Fig. 8: Development of unemployment, 1999 – 2010 (Vienna)Sources: Public Employment Service, edited by Municipal Departments 5 and 24

1.4. Income distribution and poverty

€ 12,000

€ 13,000

€ 14,000

€ 15,000

€ 16,000

€ 17,000

€ 18,000

€ 19,000

€ 20,000

€ 21,000

Annu

al n

et in

com

e (n

omin

al)

employees – Austriae employees – Viennae

pensioners – Austriap pensioners – Viennap

Year

1999 2000 2001 2002 2003 2004 2005 2006 2007

Fig. 9: Annual income (nominal) of employees and pensioners, 1999 – 2007 (Vienna - Austria) Sources: Statistics Austria, edited by Municipal Departments 5 and 24

€ 12,000

€ 13,000

€ 14,000

€ 15,000

€ 16,000

€ 17,000

€ 18,000

€ 19,000

€ 20,000

€ 21,000

Annu

al n

et in

com

e (re

al)

employees – Austriae employees – Viennae

pensioners – Austriap pensioners – Viennap

Year

1999 2000 2001 2002 2003 2004 2005 2006 2007

Fig. 10: Annual income (real, base year 1999) of employees and pensioners, 1999 – 2007 (Vienna - Austria) Sources: Statistics Austria, edited by Municipal Departments 5 and 24

114.0 112.0 110.0

poin

ts

108.0 106.0

Inde

x

104.0 102.0 100.0

2006200620066 2007200720072007 2008200820082008 2009200920092 CPI for food and non-alcoholic beverages 101.9 106.1 112.8 113.0

CPI for housing, water and energy 104.3 109.1 112.1 114.1

total CPI for Austria

101.5 103.7 107.0 107.5

116.0

Year

Fig. 11: Average annual development of the 2005 consumer price index (CPI), 2006 – 2009 Source: Statistics Austria


A comparison of annual income subject to wage tax (nominal) shows a relatively uniform wage increase both for Vienna and for Austria. However, the national average, which started at a considerably lower level in 1999 than the Viennese average, saw a stronger increase by 2007. Between 1999 and 2007, incomes increased by 13.4% in Vienna and just under 17% in Austria.The average increase in pensions was also higher for Austria overall than for Vienna.

A comparison of real (inflation-adjusted) wages instead of nominal wages shows marked differences in the development of wages for Vienna and all of Austria. While in the Austrian average, real income from gainful employment and pensions remained at approximately the same level from 1999 to 2007, it sank in Vienna. After a brief increase in 2000, real wages sank by 3.4% (from €17,435 to €16,851) until 2007, while the reduction in pensions was slightly lower at 1.5% (from €15,193 to €14,977).

▷ Higher prices primarily affect

people with a low income, as they can hardly cut any costs.

The price development from 2005 to 2009 shows an increase that is disproportionately high especially in basic subsistence costs, such as food and housing. While the overall consumer price index has increased by 7.5% since 2005, the index for food increased by 13% and that for housing, water, and energy by 14%. People with a low income are particularly affected by price increases, as they have hardly any possibilities to cut costs.



Poverty is commonly described as material deprivation (e.g., lack of food, clothing, and shelter). A broader definition of poverty includes the lack of resources and ability to participate in fundamental areas of society and its economic wealth. Poverty can be measured using the at-risk-of-poverty rate of EU-SILC (Statistics on income and living conditions), which is based on household income. Households whose income is below 60 percent of the median national equivalised household income are defined as at risk of poverty3.The 2009 survey shows that 12% of the Austrian population, approximately 1 million people, are at risk of poverty. The result for Vienna was 17% but has a very high degree of fluctuation, so it can be assumed that the overall situation has remained consistent over the last years.

The median equivalised household income in 2009 was € 19,336/year for Vienna and slightly higher for Austria overall at €19,886/year. A comparison of Vienna and Austria shows that while the top income quartile for Vienna has a higher income than the top quartile for Austria, the people in the lower two quartiles have a lower average income in Vienna than in Austria overall.

▷ According to EU-SILC 2009,

the at-risk-of-poverty rate is approx. 12% for Austria and somewhat

higher for Vienna at approx. 17%.

THE LIVES OF WOMEN IN VIENNA differ from those of the male population in many respects. This section provides a systematic look at the differences between women and men in education, income, employment, paid and unpaid work, and unemployment, where women are frequently at a disadvantage. Especially with regard to income there is a considerable gender gap to the disadvantage of women. Women also perform 80% of unpaid work.

3 Equivalised income is calculated from the total household income divided by the total weights given to all household members according to an equivalence scale.


Fig. 12: Annual equivalised household income 2009 (Austria - Vienna)Sources: Statistics Austria, EU-SILC 2009

Vienna

Austria

Percentage of population with an income of less than € …/year

Annu

al e

quiv

alis

ed h

ouse

hold

inco

me

10% 25% 50% 75% 90%

€ 11,235 € 14,879 € 19,886 € 26,616

€ 9,954 € 13,490 € 19,336 € 27,694 € 35,673

€ 34,454

0

€ 5,000

€ 10,000

€ 15,000

€ 20,000

€ 25,000

€ 30,000

€ 35,000

€ 40,000

This once again demonstrates the large gap between the high and the low in-comes in Vienna. Compared to other large cities, however , Vienna has a rela-tively low poverty rate.

1.5. Women and men in Vienna

€ 4,000

€ 3,500

€ 3,000

inco

me

€ 2,500

€ 2,000

Med

ian

€ 1,500

€ 1,000

€ 500

€ 0 compulsory schooling

or lower apprenticeship/

VET school upper secondary schoold universityi

Men € 1,610 € 2,142 € 2,616 € 3,500 Women € 1,100 € 1,300 € 1,700 € 2,400

Highest level of education

Fig. 14: Monthly gross income of employees of working age by level of education and gender, 2008 (Austria) Sources: Statistics Austria - EU-SILC 2008, edited by Municipal Department 24


▷ Among people with low qualifications , the situation is worse for women than

for men. A larger number of men have completed an apprenticeship

while a larger share of women have compulsory schooling only.

▷ On average, women earn only 66% of the median income of their male colleagues. The gender pay gap is

smaller in Vienna than in Austria overall.

4 The median is the numerical value separating the higher half of a sample or number of observations arranged by numerical value from the lower half. Therefore, one half of the observation values are lower or equal to the median, while the other half are higher or equal.


Fig. 13: Level of education of the population by gender ages 25 – 64, 2007Sources: Statistics Austria, edited by Municipal Departments 5 and 24

Women

Men

highest level of education

Shar

e

compulsory schooling

apprenticeship VET school upper secondary school

university, academy

15% 38% 6% 20%

24% 23% 13% 21% 16%

20%

institutions of higher learning

3%

1%

0

5%

10%

15%

20%

25%

30%

35%

40%

ii i i fdl i hi VET h l f

A comparison of levels of education reveals that the share of women whosehighest level of education is compulsory schooling and those who have com-pleted an apprenticeship is nearly the same, with approximately 23% in each group. The share of men who have completed an apprenticeship as their highest degree is 1.5 times higher than that of men with compulsory schooling only.Considerably more women (13%) than men (6%) have graduated from a VETschool. Approximately the same share (20%) of women and men have com-pleted upper secondary school. The situation is similar in tertiary education (universities, academies, and similar institutions of higher learning), with both women and men at approx. 20%. However, the share of women is slightly higher than that of men in other institutions of higher learning and somewhat lower in universities and academies.

Differences in income are not only due to professional qualifi cations. Gender still remains an important determinant of income. On average, female employees earn only 66% of the median income4 of their male colleagues, and this cannot be attributed solely to differences in income structures in different professions and sectors and different working hours. Even working the same hours in the same position in comparable companies, women earn less on average than men.

Fig. 16: Gender-specific distribution of work, 2002 (Vienna) Source: Statistics Austria - 2002 Microcensus

Women Men

total work

unpaid work

paid work

58%

81%

40%

42%

19%

60%


Compared to Austria overall, the gender pay gap is smallest in Vienna; however, it has hardly decreased over the last few years. While in 2007, men had a real income of €19,177 (nominal income5 €22,498) on average, women had an average real income of only €14,343 (nominal income €16,826).This means that men still earn approximately a third more than women.

As mentioned above, employment increased by some 55,000 employment contracts between 1999 and 2008, which can be attributed nearly exclusively to the stronger participation of women in the labour market.While female employment increased by nearly 13%, the increase was approx. 1.3% for men. Some 70% of this increase is in new employment forms. In 2008, the largest of these was minimal employment at 60,000 contracts, followed by minimal freelance employment contracts. While 60% of employees in these two types of employment are female, slightly more men than women have regular freelance employment contracts. The total share of women in new forms of employment is 58%.

▷ The increase in employment can

almost exclusively be attributed to the growing participation of women in the

labour market. However, the main increase was in new employment

forms, which suggests that such jobs have a high share of women.

5 Nominal means that the wage development has not been adjusted for infl ation, while real wages have been adjusted.


Fig. 15: Development of new forms of employment by gender, 1999 – 2008 (Vienna)Source: Association of Austrian Social Security Institutions

Women

Men

Empl

oym

ent c

ontra

cts

0

20,000

30,000

10,000

40,000

50,000

60,000

70,000

80,000

90,000

Year

1999

28,616

19,350

2000

31,043

21,197

2001

32,456

22,285

2002

33,394

23,220

2003

41,653

29,116

2004

43,105

30,959

2005

44,342

32,191

2006

45,363

32,452

2007

46,697

33,299

2008

50,186

36,303

Women in Vienna have a considerably higher share of part-time work than men at 35.2% vs. 12.3%. The female part-time rate for Austria (41.5%), however, is some 6 percentage points higher than for Vienna. Compared to the Austrian average (8.1%), the part-time rate of men in Vienna is relatively high (12.3%).

Another interesting fi gure in the context of fe-male employment is the distribution of paid and unpaid work . A special evaluation of data collected in the 2002 Microcensus shows that unpaid work accounts for nearly half (45%) of all work done in Austria. 60% of paid work is performed by men and only 40% by women. The situation is very different in the distribution of unpaid work. Unpaid work includes housekeep-ing, child care, and informal care for family members. More than 80% of this is performed by women and only less than 20% by men. In total, women perform more than half (58%) of all (paid and unpaid) work in Austria.

12%

10%

8%

6%

Rate

4%

2%

0% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Men 8.8% 8.0% 8.7% 10.3% 11.0% 11.4% 11.3% 10.8% 9.9% 9.0% 10.1% 10.0%

Women 7.4% 6.3% 6.5% 7.6% 7.9% 8.1% 8.1% 7.6% 7.0% 6.5% 6.9% 7.1%

Year

Fig. 17: Development of registered unemployment rates, 1999 – 2010 (Vienna) Source: Bali-web


The unemployment trends are similar for women and men, with men being proportionately more affected. The unemployment rate for men increased stronger between 2000 and 2004 than that for women, but then also decreased stronger until 2008. After 2008, unemployment rose again for both women and men due to the economic crisis. The increase was considerably more dramatic for men than for women in Vienna – male unemployment increased by 1.1 percentage points from 2008 to 2009, while the increase for women was only 0.4 percentage points. However, there was already a slight reduction of unemployment for men (by 0.1 percentage points) in 2010, while female unemployment continued to rise (by 0.2 percentage points).

▷ Men are slightly more at risk of unemployment. However, male

unemployment began decreasing in 2010, while it continued to

grow for women.


20

Social Security and Welfare System

Chapter 2

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2. Social Security and Welfare System

2.1. Welfare in Austria

AUSTRIA’S WELFARE SYSTEM follows the conservative welfare state model and relies mainly on financial and insurance benefits that are linked to previous employment. The social safety net is provided by the federal state, the provinces, and the municipalities. Provincial benefits are provided after federal benefits and are usually subsidiary and means-tested. Changes on the labour market and cuts in insurance benefits often have an immediate impact on the welfare systems of the provinces.


principle of insurance

social insurance contributions

accident insurancevictims’ welfare

childcare allowance

child benefi t

attendance allowance

accident at work compensation

compensation for inability to work in one’s profession

therapeutic aids

medical treatment

social welfare

fi nancial benefi ts

sickness benefi ts

home assistance and nursing care

homeless serviceshealth insurance

disability services

basic welfare support

child and youth welfare

debt counselling, etc.

kindergarten

social services

housing assistance

sickness benefi t

maternity benefi t

medical care

therapeutic aids

pension insurance

old-age pension

widow’s/widower’s pension

(partial) invalidity pension

rehabilitation

equalisation supplement (minimum pension)

preventive health care

unemployment insurance

unemployment benefi t

emergency assistance

temporary job placements

career counselling

taxes

principle of demand principle of provision

provincial benefi ts

federal benefi tsLegend:

Fig. 18: The Austrian social welfare system Source: Municipal Department 24

Federal benefi ts include all insurance-based benefi ts (social insurance and unemployment insurance) and universal tax-fi nanced benefi ts such as childcare allowance, child benefi t and federal attendance allowance.


Public pension insurance The public pension insurance system provides financial security in old age or when the ability to work is lost due to disability or illness. It covers pensions, general disability pensions, widow’s/widower’s pensions, and orphan’s allowances. It is a pay-as-you-go system, i.e., the contributions of the current workforce fund the pensions of today’s pensioners. By paying these contri butions, they qualify for a pension later on. Pension is available upon reaching statutory retirement age or when becoming unable to work, once the required minimum insurance period has been reached. Dependents of insured indivi duals can also receive a pension. Over the last years, the Austrian insurance regulations have been reformed several times to cut costs.Two additional pillars were added to complement public pension insurance: both private pension insurance and occupational pension schemes are being promoted.

There is no legal minimum pension in Austria. However, pensioners who receive less than the equalisation supplement reference rate may be eligible for an equalisation supplement6 if they meet certain conditions. The reference rate for the equalisation supplement in 2010 was €783.99/month before taxes. It is paid fourteen times a year.The equalisation supplement is paid from tax funds.

Health insurance The majority of Austrians are insured with the statutory public health insurance and therefore have full insurance coverage. The inclusion of basic benefit recipients into the public health insurance with the introduction of the meanstested basic benefit closed the last gap in coverage. Statutory health insurance provides comprehensive coverage in the case of illness. It covers all medical services (hospital treatment, extramural treatment, pharmaceuticals, thera peutic appliances, etc.) not only for the contributors but also for co-insured persons such as children and spouses. Approximately three quarters of health care services in Austria are paid from health insurance and public funds (federal and regional authorities).The remaining quarter is paid privately. Public health insurance usually also covers sickness benefits that are paid for each day of illness.

Work accident insurance The Austrian Social Insurance for Occupational Risks (AUVA) provides benefits in the case of a work-related accident or occupational disease. The occupational risk insurance is also paid by the contribution system. Its main services include prevention, rehabilitation, and various pension payments.

Unemployment insurance Unemployed people can apply for subsistence benefits at the Public Employment Service (AMS). To be eligible for unemployment benefit, an individual must have paid contributions for a certain time and must be both able and willing to work in a reasonable job. Unemployment benefits are usually granted for 20 weeks. Applicants who have been insured for a long time or are older can receive benefits for a longer time.The size of unemployment benefit is based on the individual’s previous income and is currently at 55% of the average net

6 The equalisation supplement ensures a minimum income for every pensioner. If the total income (pension plus any additional net income plus any maintenance claims) is lower than the statutory minimum (reference rate), the pensioner will receive an equalisation supplement to increase their total income.

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▷ All insurance benefits and

most universal benefits are federal benefits , while the provinces and

municipalities mainly provide means-tested and welfare services.



income of the previous year. After the unemployment benefit runs out, an unemployed person can apply for emergency assistance. Emergency assistance differs from unemployment benefit in that it also has elements of basic benefit and is means-tested. The partner’s or spouse’s income is considered in the means-testing. Emergency assistance is 92 – 95% of the previously received unemployment benefit and can be received for an unlimited time as long as the requirements are met.

There is no minimum unemployment benefit in Austria. If the income is very low, people can apply for means-tested basic benefit. Since 1 September 2010 it has also been possible to file the application at the Public Employment Service, which forwards it to the competent social welfare office. Employable people who are not eligible for unemployment benefits because they have no or too short insurance periods can also apply for basic benefit, provided they are willing to work.

In addition to handling the unemployment benefits, one of the main tasks of the Public Employment Service is the placement of unemployed people.

Child benefit Child benefit is a universal support benefit.The requirement for receiving it is that the child is not yet able to provide for themselves. Child benefit is independent of income and is between €105.4 and €202.7 (2010) depending on the age and number of children. Additionally, parents get a child tax credit.

Childcare allowance Childcare allowance was introduced in 2002 and is a universal benefit intended to (partially) cover the costs of caring for infants and young children. There are different forms of childcare allowance with different durations and sizes. In order to be able to get the full benefit, both parents must share childcare times. In 2010, an income-based option was added to the lump-sum models. Child benefit and childcare allowance are funded from taxes and the Family Burdens Equalisation Fund.

Attendance allowance Attendance allowance for long-term care is also a universal benefit and is independent of income. The size of attendance allowance is based solely on the current need for care, which is determined by medical experts. The amount depends on the need for nursing care per month; there are seven care levels. The lump-sum benefits are between €154.20 and €1,655.80/month. Attendance allowance is intended to partially cover the necessary care, including payment for mobile, extramural or intramural services, and day centres.The cost of these nursing care and attendance services is also covered in part by patient contributions and subsidies.

The provinces and municipalities are in charge of in-patient health care, childcare, child and youth welfare, provincial attendance allowance7, disability services, housing and homeless services, extramural, mobile, and intramural care and nursing services, and the means-tested basic benefit.With the exception

7 The provincial attendance allowance will become a federal responsibility on 1 January 2012.

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42%

2%5%7%

8%

10%

26%

old age

health care

families/children

invalidity/infirmness

unemployment

widows/widowers/orphans

housing/social exclusion

26%


of intramural services that are part of the health care system, and services for children, which are not part of the responsibilities of the Administrative Group for Public Health and Social Affairs, these provincial services are described in depth in the following chapters.

2.2. Social expenditure in Austria

APPROXIMATELY HALF OF THE BENEFITS in the social safety net in Austria are paid by the federal state, while the provinces and municipalities cover approximately a quarter each.

An important indicator for comparing social expenditure is the social expenditure-to-GDP ratio. It shows the share of social expenditure (including health care expenditure) in the GDP. After a strong increase in the early 1990s, the social expenditure-to-GDP ratio has fluctuated between 28% and 30%. In 2008, it was 28.3%.

▷ The social welfare costs are shared between the federal, provincial, and

municipal levels. The majority of social expenditure goes to old-age pensions.

Fig. 20: Social expenditure by areas, 2008 (total: € 77,300 million) Source: Statistics Austria - ESSPROS


Fig. 21: Development of the social expenditure-to-GDP ratio, 1990 – 2008Source: Statistics Austria

25%

30%

29%

28%

27%

26%

soci

al e

xpen

ditu

re-t

o-GD

P ra

tio

Year

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2001 2002 2003 2004 2005 2006 20072000 2008

Fig. 19: Share of federal, provincial, and municipal spending on social protection, education, and health, 2006 Source: OECD

responsibilitysocial protection education health

federal level provinces municipalities

shar

e

0%

100%

80%

60%

40%

20%

According to the European system of integrated social protection statistics (ESSPROS), social expenditure in Austria in 2008 was € 77.3 billion (without administrative costs). Half of the social welfare budget is spent on old-age pensions and benefi ts for invalidity and infi rmity . A quarter of the total social welfare budget is spent on medical care, a tenth on services for families and children, and only 2% on measures to combat social exclusion.

country

soci

al e

xpen

ditu

re-t

o-GD

P ra

tio

0% ia a

35%

30%

25%

20%

15%

10%

5%

Latv

Eston

ia

Roman

ia

Lithu

ania

Bulga

ria

Slova

kia

Malta

Polan

d

Cyprus

Czech R

epub

lic

Irelan

d

Luxe

mbourg

Sp

ain

Slove

nia

Icelan

d

Hunga

ry

Norway

Greece

Portu

gal

Unite

d King

dom

Finlan

d

EU-2

7 Ita

ly

EU-2

5

Switze

rland

German

y

Austr

ia

Netherl

ands

Denmark

Belgi

um

Swed

en

Franc

ekad5y7dleyydadcsdaaaaaa

11.0

%

12.5

%

12.8

%

14.3

%

15.1

%

16.0

% 18.1

%

18.1

%

18.6

%

18.9

%

19.3

% 21.0

%

21.4

%

22.3

%

21.5

%

22.8

% 24.4

%

24.8

%

25.3

%

25.4

%

26.2

%

26.7

%

26.9

%

27.3

%

27.7

%

28.0

%

28.4

%

28.9

%

29.5

%

29.7

%

30.5

%

18.5

%


Among the European countries, Austria ranked sixth for social expenditure in 2007 with 28% of the GDP.

Fig. 22: Social expenditure-to-GDP ratios of European countries, 2007 Source: Eurostat

2.3. Social expenditure in Vienna

SOCIAL EXPENDITURE HAS INCREASED over the last years in Vienna as well.This is not only due to increased costs (e.g., higher benefit rates and quality improvements) but also to an increased use of services (e.g., in the areas of home care and nursing services and in welfare benefit/means-tested basic benefit), lower co-payments (e.g., in nursing care) or lower income (e.g., in welfare benefits), and new or additional measures (e.g., attendance allowance supplement and the introduction of the means-tested basic benefit).

From 2006 to 2010, the social budget of the Administrative Group for Public Health and Social Affairs grew by some €304 million to approx. €1.1 billion (an increase of nearly 40%)8. This includes the expenses of the Vienna Social Welfare Fund (disability services, homeless services, home and nursing care), Municipal Department 40 (welfare benefit/means-tested basic benefit, attendance allowance) and the clubs for the elderly managed by the Trust of the Vienna Homes for the Elderly. Details on the development of expenses in the individual areas are given in the corresponding chapters.

▷ The social welfare expenditure (core

reas) of the Province of Vienna increased by nearly 40% from 2006 to 2010.

a

8 Municipal Department 5: Annual accounts 2006 and 2010; http://www.wien.gv.at/ finanzen/budget/ (last accessed 11 August 2011)



2.4. Political system and administration

AUSTRIA’S POLITICAL SYSTEM follows a federalist model with a federal, provincial, and municipal level. Vienna, the federal capital, has a dual role and is both a province and a municipality.

Vienna as a federal province has a: ▷ Provincial Parliament (legislative body) ▷ Provincial Government (executive body): Provincial Governor + 12 members

of government (City Councillors) ▷ and the Office of the Vienna Provincial Government (administrative body)

headed by the Head of the Office of the Provincial Government

Vienna as a municipality has a: ▷ City Council ▷ Municipal Board (=Vienna City Senate): Mayor + City Councillors ▷ and a Municipal Council Office (=Vienna City Administration, divided into a

number of Administrative Groups) headed by the Chief Executive Director of the City Administration

▷

▷

Vienna is not only the Austriancapital but is also both a province

and a municipality.

The City Administration is divided into different Administrative Groups.

Most social welfare services are located in the Administrative Group for Public Health and Social Affairs.


▷ Municipal Department 24 – Health Care and Social Welfare Planning is in charge of the strategic planning of Vienna’s health care and social welfare policies and the coordination of the operative departments.

▷ Municipal Department 40 – Social Welfare, Social and Public Health Law is the department in charge of social and public health law and has operative responsibility for granting the provincial attendance allowance and the means-tested basic benefi t.

▷ Municipal Department 70 – Ambulance and Patient Transport Services is an emergency organisation that is available 24/7 year round. It fulfi ls the task stipulated by provincial law to maintain a level of ambulance services that is suffi cient for the population of Vienna and cooperates with privately managed ambulance services.

▷ The Vienna Hospital Association is one of Europe’s largest health care ortial ganisations. It manages 12 hospitals, 11 geriatric homes, and a residen

nursing home of the City of Vienna. A total of over 30,000 employees care for 400,000 in-patients annually. Additionally, there are some 3.4 million visits to out-patient departments every year. The Vienna Hospital Association is also the largest training provider for health care professions in Austria.

▷ The Vienna Social Welfare Fund (FSW) cooperates with more than 150 partner organisations to provide social and health care services for Vienna’s population. The operation and fi nances of the fund are supervised by the City of Vienna. The FSW plans, steers, and supports numerous services for people in need of home care and nursing services, homeless people, people with disabilities, and people who need help with managing their debts. Both individuals and organisations or projects can receive support from the FSW.

The Vienna social welfare system also includes related areas such as housing assistance, municipal housing, youth welfare and kindergartens, women’s shelters, and the Women’s Emergency Helpline, which are located in other Administrative Groups.


2.5. Organisation of the Viennasocial welfare system

THE PUBLIC HEALTH CARE and social welfare system in Vienna is mainly managed by the Administrative Group for Public Health and Social Affairs.

The following Municipal Departments and institutions are part of the Adminis trative Group:

▷ Municipal Department 15 – Public HealthServices of the City of Vienna provides various

services for Vienna’s population, such as preventive health check-ups, family planning and parent counselling services, development diagnostics, health care for tuberculosis patients, information and support for people with sexually transmitted diseases, vaccinations, and advice concerning travel medicine.

Administrative Group for Public Health and Social Affairs

Municipal Department 15 Public Health

Services of the City of Vienna

Municipal Department 40 Social Welfare,

Social and Public Health Law

Municipal Department 24 Health Care and Social Welfare

Planning

Municipal Department 70 Ambulance and Patient Transport

Services

Vienna Hospital Association

Enterprises of the City of Vienna

Addiction and Drug Coordination Office Vienna

other organisations

Vienna Board for Psycho-Social Care

Trust of the Vienna Homes for the Elderly

Funds of the City of Vienna under the Funds and Trusts Act

Vienna Social Welfare Fund

Fig. 24: Organisation of the Administrative Group for Public Health and Social Affairs Source: Municipal Department 24


29Summary of the Vienna Social Welfare Report 2010

Chapter 3

Welfare Benefit

in Vienna

PA

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Welfare Benefit in Vienna

3. Welfare Benefit in Vienna

3.1. Objectives and target group

WELFARE BENEFIT (called means-tested basic benefit) is the second tier of welfare after the social security benefits linked to employment (unemployment benefit and emergency assistance) and is designed to secure the beneficiaries’ livelihoods in financial emergency situations and to prevent such emergencies. Basic benefit is no longer a measure just for temporarily unemployed or economically inactive individuals; it also increasingly offsets deficits in the first tier of welfare and is frequently used to supplement low unemployment benefit or emergency assistance. For many people, it is becoming a long-term or permanent income replacement – mainly for unemployed people, but a growing number of working poor also need it to supplement their low income. The main reasons for this are structural changes on the labour market, such as sinking wages, precarious employment, and a lack of jobs for people with low qualifications.

3.2. Introduction of the means-tested basic benefit

IN ITS 23RD LEGISLATIVE PERIOD, the Austrian Parliament made poverty reduction a key goal and passed the proposal for the means-tested basic benefit. In June 2010, all federal provinces signed the agreement negotiated between the federal government and the provinces pursuant to Art. 15a Federal Constitutional Law. The federal provinces then had to adapt their welfare benefit schemes to meet the newly agreed requirements.The Vienna Basic Benefit Act entered into force on 1 September 2010.

The means-tested basic benefit is a milestone in social policy not only because it has improved procedures and provides better access to services than the previous welfare benefit system, but also because under the new system, the first and second tiers of welfare are closely meshed. Basic benefit recipients now have access to all labour market programmes of the Public Employment Service, to which welfare benefit recipients who were not eligible for unemployment benefit or emergency assistance had only very limited access under the old system. They now also have health insurance and receive an e-card (electronic health insurance certificate) like all other insured people.The introduction of the means-tested basic benefit also benefits recipients of emergency assistance, which has been raised.

The nine different social welfare acts of the federal provinces were harmonised with the introduction of the means-tested basic benefit.There were considerable differences especially in the standard rates and the systems for determining them, as well as in claims regulations. Many of the progressive welfare regulations that Vienna already had for years are now reflected in the means-tested basic benefit and therefore apply to all of Austria. This includes the possibility of earning additional income, the initial six-month exemption from asset realisation, and the abolishment of claims against first-degree relatives in the direct ascending and descending line (parents and children).

▷ The means-tested basic benefit is a milestone in social policy. It replaced

the previous welfare benefit.



3.3. The organisation of welfare assistance in Vienna

THE BASIC BENEFIT SCHEME is managed in ten decentralised social welfare offices of Municipal Department 40 – Social Welfare, Social and Public Health Law.The social welfare offices are one stop shops, providing not only financial support but also information and counselling by licensed social workers. The application for means-tested basic benefit must be submitted in writing but can be filed in person at a social welfare office. With the introduction of the means-tested basic benefit, recipients of unemployment benefit or emergency assistance can now also file their application at the competent regional office of the Public Employment Service Vienna. The application for means-tested basic benefit can be filed when applying for unemployment benefit/emergency assistance and is forwarded to Municipal Department 40 by the Public Employment Service to allow a more anonymous access to benefits. The easier access to basic benefit is also intended to reduce the number of eligible people who do not apply for it. The application is still verified by Municipal Department 40, which looks at the income situation, assets, personal and family situation, and the willingness to seek employment.

▷ Municipal Department 40 is

responsible for the distribution of means-tested basic benefit in Vienna.

Step2Job

Even before the introduction of the means-tested basic benefit, Vienna took steps towards labour market integration of welfare recipients with the pilot project Step2Job. This project provides people who are not eligible for services of the Public Employment Service with tailored assistance to support their re-integration into the labour market. The employees of Step2Job make use of services and programmes of both the Province of Vienna and the Public Employment Service. The objective is continuous case management of groups of people who so far had hardly any access to measures offered by the Public Employment Service. With this cooperation effort, the Public Employment Service and the Province of Vienna are setting new standards for the integration of basic benefit recipients. Step2Job cooperates with several employment projects funded by the City of Vienna.

3.4. Benefits

THE SIZE OF THE BASIC BENEFIT is calculated based on the number of members of the household dependent on the benefit9, the size of the rent, and the available family income. The equalisation supplement reference rate10 is the base value for the calculation of the means-tested basic benefit. Singles and single parents receive 100% of the equalisation supplement reference rate. The minimum standard per person for couples (married or cohabiting) is 75% of the equalisation supplement reference rate. Children who are eligible for child benefit receive 18% of the equalisation supplement reference rate.

9 Recipient households are frequently identical with the actual household; however, not all members of a household necessarily need to be supported with the basic benefit. A household can also consist of more than one group of people receiving basic benefit (e.g., children who are capable of earning their own livelihood who live with their parents form a separate recipient household if they need basic benefit).

10 See Footnote 6 in the Social Security and Welfare System chapter.

Eligibility and requirements

Eligibility: People eligible for means-tested basic benefit are Austrian citizens, people with a refugee or subsidiary protection status, and, in some cases, EU/EEA citizens and third country nationals and their family members.

Use of own assets: The means-tested minimum income is determined based on the applicant’s and their spouse’s or partner’s income. If assets exceed the allowable asset limit, they have to be realised after the exemption period of six months.

Willingness to work: Beneficiaries who are fit to work and on the labour market are obliged to make an effort to find employ ment. The City of Vienna supports labour market reintegration with a number of measures. A refusal to seek work results in a reduction of the benefit.

Repayment: Means-tested basic benefit only has to be paid back if the recipients acquire assets. Repayment can also be claimed from the estate of a former recipient. Means-tested basic benefit must also be paid back if it was wrongly claimed.



Minimum standards for basic benefit Percent Euro

Equalisation supplement reference rate 2010 744.01

Singles and single parents 100% 744.01

Couples (per person) 75% 558.01

Children eligible for child benefit 18% 133.92

Basic subsidy for housing costs 25% 186.00

Maximum additional rent allowance

1 or 2 persons 93.00



from 7 persons 141.00

Table 2: Minimum standards for means-tested basic benefit

For singles, single parents and couples the minimum standard includes a basic subsidy for housing costs of 25%, which must be used to pay the rent. If the rent cannot be covered by the basic subsidy for housing costs (and, if applicable, housing assistance granted by Municipal Department 50), recipients are legally entitled to additional rent allowance. The size of the rent allowance is calculated on a case by case basis but may not exceed the maximum rent allowance threshold (basic subsidy for housing costs plus maximum additional rent allowance). People who pay little or no rent nevertheless receive the full minimum standard in Vienna.

Welfare benefit (old system) singles Euro Means-tested basic benefit Euro Explanations Euro

Means of subsistence 461.00 Minimum standard 744.01 Included basic housing cost subsidy 25% 186.00

Rent allowance 279.00 Additional rent allowance 93.00 Total rent allowance 279.00

Heating subsidy 44.00

Total benefi t 784.00 837.01 Basic benefit higher by 53.01

Welfare benefit (old system) couples Euro Means-tested basic benefit Euro Explanations Euro

Means of subsistence 714.00 Minimum standard 1,116.02 Included basic housing cost subsidy 25% 279.00

Rent allowance 279.00 Additional rent allowance 0.00 Total rent allowance 279.00

Heating subsidy 44.00

Total benefi t 1037.00 1,116.02 Basic benefit higher by 79.02

Table 3: Sample calculations of means-tested basic benefit

There are additional fi nancial benefi ts: ▷ Assistance in exceptional circumstances

to individuals with a low income who fi n: This assistance can be granted

d themselves in a financial emergency (e.g., rent arrears, energy back payments, one-time expenses for buying or repairing indispensable commodities such as radiators, etc.).

▷ Vienna heating subsidy: This is available for low-income households in Vienna. Recipients of basic benefit and rent allowance receive the heating subsidy automatically. In the 2009/2010 heating season, the heating subsidy was €200 per household.

▷ Vienna mobility pass: The Vienna mobility pass, which grants discounts for public transport and other services, is an additional resource for recipients of basic benefit and equalisation supplement. It is not only intended to support the mobility of people with a low income, but also to grant them access to the broad range of services offered by the City of Vienna (e.g., courses at the Vienna Public Learning Centres).

▷ The total level of benefits in Vienna

increased by € 53 per month or € 636 per year for singles. Married

and cohabiting couples receive € 79 per month or € 948 per year more.


Supplementary benefit

50%

5%

9%

16% 20%

Full benefit

Rent allowance

Permanent benefit

Other benefit

67%

5%

6%

9% 13%

Supplementary benefit

Full benefit

Rent allowance

Permanent benefit

Other benefit


Permanent benefits can also be paid as full basic benefit or supplement ary benefit (shown as a single categor y in this report) and are granted to individuals who are unable to work or who have reached retirement age but do not receive disability or retirement pension. The main target group are people with disabilities and long-term welfare benefit recipients who have reached retirement age or are no longer able to work. This kind of permanent benefit is only provided in Vienna.

Rent allowance is also part of the basic benefit system and supports pensioners whose pension (usually pension with equalisation supplement) is low and rent is high. Rent allowance can also be granted in addition to housing assistance. Rent allowance and housing assistance are two provincial benefits that make living in Vienna affordable. The rent allowance is also a benefit provided only by the Province of Vienna and exists in no other Austrian province.

Types of benefits

Full basic benefit is granted to recipient households with no income (e.g., wages or unemployment benefit). This group includes many young (unemployed) basic benefit recipients who have not yet worked long enough to be eligible for unemployment benefit, but there are also many older (unemployed) people who are not eligible for benefi ts from the social insurance system (e.g., because they were not able to assert the claim in time and it has lapsed).

As soon as a member of a recipient household (spouse or partner) has their own income, the basic benefi t is granted as a supplementary benefi t, i.e., in addition to the income (up to the maximum equalisation supplement reference rate).

3.5. Developments in welfare benefit

THE NUMBER OF WELFARE RECIPIENTS has increased strongly over the last years. The previously high share of older recipients and recipients who were incapable of working (permanent beneficiaries) and of people without any other income (full benefit recipients) has decreased, while the share of employable and employed people (supplementary benefit recipients) has increased dramatically, from 50% to 67%.

▷ The number of supplementary

benefit recipients increased from 50% to 67% of all basic benefit recipients

between 2000 and 2008.

Fig. 25: Welfare benefit – shar e of recipients of the different benefits 2000 (base v alue: 41,457 persons) Sources: Municipal Department 40, own calculations of Municipal Department 24

Fig. 26: Welfare benefit – shar e of recipients of the different benefits 2008 (base v alue: 93,547 persons) Sources: Municipal Department 40, own calculations of Municipal Department 24

This indicates that the target group has changed. The focus of basic benefit is no longer on elderly or incapacitated people but on people who are capable of working and sometimes also receive payments from the first tier of welfare – usually unemployment benefit.

In absolute figures, the number of recipients11 of welfare / basic benefit in Vienna has increased from 42,754 in 2000 to 93,547 in 2008, more than doubling

11 The number of welfare recipients includes members of the recipient households of beneficiaries, i.e., all family members dependent on the recipient’s benefit, such as spouses or children.


2000 2001 2002 2003

Year

Reci

pien

t hou

seho

lds

2004 2005 2006 2007 2008 0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

Supplementary benefit Full benefit Rent allowance Permanent benefit Other benefit

10,734

6,960

3,580 6,724

1,113

29,111

12,697

7,901

3,682 7,125

1,965

33,370

16,503

9,000

3,816 6,965

3,091

39,375

19,385

9,677

3,871 6,837

3,253

43,023

22,249

10,004

3,916 6,757

2,782

45,708

24,684

4,007 6,779

2,432

48,063

10,161

26,965

4,210 7,024

2,610

51,094

10,285

29,023

10,426

4,629 7,510

2,792

54,380

30,853

10,324

5,097

7,972

2,917

57,163


the number of welfare recipients.The number of beneficiaries increased between 2000 and 2008 for all types of benefits.The largest increase was registered for supplementary welfare recipients (+199%), followed by full welfare (+49%), permanent (+46%), and rent allowance (+19%) beneficiaries.This indicates that the increase in Vienna is primarily due to the larger number of supplementary welfare recipients.

▷ The number of welfare recipients

per year increased by 120% from 2000 to 2008.

▷ The number of recipient

households increased by nearly100% from 2000 to 2008.

Fig. 28: Development of recipient households by benefit, 2000 – 2008 Sources: Municipal Department 40, own calculations of Municipal Department 24


Fig. 27: Development of welfare recipients by benefi t, 2000 – 2008Sources: Municipal Department 40, own calculations of Municipal Department 24

2000 2001 2002 2003

Year

Pers

ons

2004 2005 2006 2007 2008

Supplementary benefit Full benefit Rent allowance Permanent benefit Other benefit

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

110,000

20,965

8,460

3,6886,724

2,91742,754

26,802

9,732

3,7957,125

3,62251,076

35,648

11,004

3,9436,965

5,792

63,352

41,311

11,642

4,0066,837

5,644

69,440

46,698

12,049

4,0536,757

4,888

74,445

51,347

4,1606,779

4,199

78,855

12,370

55,078

4,4007,024

4,33883,523

12,683

58,945

12,575

4,8567,510

4,743

88,629

62,760

12,595

5,3937,972

4,827

93,547

The number of recipient households increased from 29,111 in 2000 to 57,163 in 2008, nearly doubling the number of households where more than one mem-ber is dependent on the recipient’s benefi t (+97%).


The somewhat lower increase in recipient households compared to the increase in individual beneficiaries means that the number of members of these recipient households has grown. In 2000, a recipient household consisted of 1.43 people on average. In 2008, the average number of people supported in a common household with the recipient was 1.64.This can be attributed to the larger share and higher number of families with children who receive benefits. Recipient households are clearly smaller than the average Viennese household (1.99 members in 2008).

▷ The number of people in recipient

households increased from 1.43 to 1.64 between 2000 and 2008.

The share of couples with children increased from 7 to 11% between 2000 and 2008, while the share of singles decreased slightly. Singles account for nearly three in four recipient households at 74% (approx. 42,200 people) and remain the main target group of basic benefit. 22% of recipient households have children who are dependent on the benefit. Table 4: Welfare benefit r ecipient

households

3.6. Expenditure/budget

IN 2008, THE TOTAL BUDGET FOR EXTRAMURAL SOCIAL ASSISTANCE was over € 320 million. The largest part was for financial benefits and health care assistance. The budget is also used to fund labour market inclusion projects and the Centre for Secure Tenancy (FAWOS).The total budget for social assistance nearly doubled from 2000 to 2008. Due to organisational and budgetary changes (reassignment of responsibilities, new budgeting guidelines, changes in health care assistance, etc.), the overall expenditures cannot be truly compared. Financial benefits are better suited for comparison.They have increased by approx. 150%.This means that the budget has grown more than the number of welfare recipients (120%) due to the annual increase of the standard rates and a lower income threshold for supplementary welfare recipients.

Share in welfare benefits 2000 2004 2008

Single parents 11% 10% 11%

Couples with children 7% 12% 11%

Couples without children 3% 5% 4%

Singles 79% 73% 74%

Expenditure for extramural social assistance Expenditure 2008 Expenditure 2000

Total expenditure for social assistance (including staff, benefits in kind, and health care assistance)

€ 320,369,409.21 € 171,440,142.66

of which financial benefits of social assistance € 219,467,083.77 € 87,521,637.86

Financial welfare benefit (supplementary and full welfare)

€ 148,686,646.64 € 48,822,918.95

Permanent benefi ts € 46,273,746.00 € 25,195,863.52

Rent allowance € 8,872,794.31 € 7,337,743.54

Assistance in exceptional circumstances € 5,602,730.02 € 6,165,111.86

Vienna heating subsidy € 10,031,166.80 € 0.00

▷ In 2008, the total expenditure

for extramural social assistance was approx. € 320 million.

Table 5: Social assistance expenditure


36

Vienna Basic Welfare

Support

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Vienna Basic Welfare Support

4. Vienna Basic Welfare Support


LIKE 145 OTHER STATES, Austria is a signatory of the Geneva Refugee Convention and the 1967 Protocol. With its signature, Austria committed itself to admitting and providing for people who are being persecuted in their own country.Vienna basic welfare support is a temporary measure that ensures the subsistence of people in need of support and protection during their asylum procedure and for the first four months after being granted refugee status.

4.2. Vienna Basic Welfare Support Act

ON 1 MAY 2004, the Agreement between the Federal State and the Provinces on Joint Measures for Temporary Basic Welfare Support for Aliens in Need of Support and Protection in Austria entered into force. The Basic Welfare Support Agreement pursuant to Art. 15a Federal Constitutional Law forms the basis for care for asylum seekers, refugees who have been granted asylum, displaced persons, and other people in Austria who cannot be repatriated for legal or factual reasons.This replaced the so-called Federal Care system and expanded and harmonised assistance for this target group.The agreement between the federal state and the provinces stipulates the equal distribution of asylum seekers across the entire country and the sharing of costs between the federal state and the provinces. The costs for basic welfare support are distributed between the federal and the provincial administrations in a ratio of 60:40. If the procedure takes longer than a year, the federal state covers the full costs.All federal provinces have passed their own provincial laws based on the agreement. The situation of the target group has improved noticeably due to the provinces providing basic welfare support and being involved financially.

4.3. Organisation of basic welfare support

THE RESPONSIBILITY FOR THE IMPLEMENTATION of the 15a Agreement in Vienna rests with the Vienna Social Welfare Fund (FSW). It has set up the Coordination Office for Basic Welfare Support Vienna. People who receive basic welfare support can be housed in a facility of the basic welfare system or can receive financial support if they are privately housed (the Caritas Vienna Service Office handles the payment of this support).

4.4. Benefits

▷ For people in basic welfare housing: Food or a food allowance of €5 per day plus an allowance of €40 per month for other expenses.

▷ For people with individual private accommodation: A monthly accommodation allowance of a maximum of €110 for singles or max. €220 for families and a monthly allowance for food and incidentals of max. €180 per person for adults and €80 for minors.

▷ General basic welfare services: Support for clothing (max. €150 per year), school materials for school children (max. €200 per school year), health insurance, reimbursement of travel costs for summons to appear at public authorities or transfers, information, advice, and support.

▷ Basic welfare support is a benefit

that is the same in all of Austria and provides assistance for asylum seekers

during their asylum procedure, and for people who cannot be

repatriated for various reasons.

▷ In addition to accommodation and

an allowance, or an accommodation allowance plus a food and incidentals

allowance, the recipients also get health insurance.



In Vienna, asylum seekers receive support and information from the following six organisations that provide basic welfare information: Caritas, Diakonie, Integrationshaus, Kolping, Volkshilfe-Wien, and Verein Ute Bock.

People who have been granted asylum and people with a subsidiary protection status can also avail themselves of the services of the Austrian Integration Fund of the Ministry of the Interior and the information centre Starting Aid (Interface) of the City of Vienna.

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4.5. Developments in basic welfare support

OVER THE LAST YEARS, the number of asylum seekers has declined drastically. From 2002 to 2007, the number of applications for asylum in Austria sank from 39,000 to 13,000. It has been increasing slightly since 2008.

▷ The number of recipients of basic

welfare support has declined continuously over the last years.


Fig. 29: Asylum applications, 2001 – 2009 (Austria)Source: Federal Ministry of the Interior

0

45,000

40,000

35,000

30,000

25,000

20,000

15,000

10,000

5,000

applications

2001

30,127

2002

39,354

2003

32,359

2004

24,634

2005

22,461

2006

13,349

2007

11,921

2008

12,841

2009

15,821

Year

Asyl

um a

pplic

atio

ns

a

This development is both due to more restrictive federal laws and to the changes in the geopolitical situation of Austria. Since the EU accession of Eastern European countries in 2004, Austria has been surrounded by safe third countries and can reject asylum seekers entering Austria from those countries.

0

10,000

8,000

9,000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

Pers

ons

Basic welfare support recipients (total)B Recipients in basic welfare housingR Recipients with private accommodation receiving accommodation allowanceR

Year

20092008200720062005


The number of people needing basic welfare support has also declined continuously in Vienna over the last years. In 2009, a total of 5,846 people received basic welfare support, which was a third less than in 2005 (8,621).

Fig. 30: Development of basic welfare support recipients, 2005 – 2009 (Vienna) Source: Vienna Social Welfare Fund

More than one in three asylum seekers and people with a subsidiary protection status have private accommodation, usually with friends or family, and the rest live in basic welfare housing facilities.


IN 2009, SOME 5,850 PEOPLE IN VIENNA received basic welfare support.The gross expenditure of the Vienna Social Welfare Fund for basic welfare support in 2009 was €34.4 million, which is a 22% reduction from 2005, when the cost was €43.9 million.

The costs for approx. 44% of people are covered by the federal state due to long asylum procedures. For the remaining 56%, the costs are shared between the federal and the provincial administrations in a ratio of 60:40. This leads to annual refunds from the federal state, which considerably decrease the gross cost of basic welfare support for the Province of Vienna.


40

Vienna Debt Counselling

Service

Chapter 5

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Vienna Debt Counselling Service

5. Vienna Debt Counselling Service


APPROXIMATELY HALF OF THE AUSTRIAN POPULATION lives in indebted households. The majority of debts are paid. However, some 9% of the Austrian population cannot make their debt payments on time.The Vienna Debt Counselling Service has many years of experience in helping people manage their debt problems. It was also strongly involved in developing the personal bankruptcy regulations and provides support in most personal bankruptcy proceedings in Vienna.

5.2. Organisation

THE VIENNA DEBT COUNSELLING SERVICE (Schuldnerberatung Wien GmbH ) is financed by the City of Vienna (Vienna Social Welfare Fund), the Public Employment Service Vienna, and Caritas – Archdiocese Vienna. It is the only officially recognised non-profit debt counselling service in the Austrian capital. Thanks to merging the Debt counselling bureau of the Vienna City Administration and the Credit and redress counselling service into one organisation, increasing the number of employees, and organisational changes, the increased demand for counselling and information in Vienna can be covered.

Debt settlement proceedings – private bankruptcy

Private bankruptcy is a special form of bankruptcy for natural persons, regardless of whether they are private individuals or sole traders.

The purpose of private bankruptcy is to provide a possibility in the case of insolvency for the debtor to escape from the spiral of growing debt and to become debt-free in a maximum of seven years.

▷ The Vienna Debt Counselling Service was restructured in the last years and

the number of employees was increased.

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5.3. Services

THE TASK OF THE VIENNA DEBT COUNSELLING SERVICE is to provide advice to people with debt problems in Vienna and to carry out preventive measures against over-indebtedness. The objective is to stabilise the financial situation of the debtors in order to avoid the consequences of over-indebtedness. The counselling focuses on ensuring subsistence, managing all debts, and helping the clients get debt free as soon as possible. In 2009, the Vienna Debt Counselling Service carried out 21,882 consultations. It also aims to increase the population’s knowledge about indebtedness.

5.4. Developments

THE FINANCIAL CRISIS led only to a marginal increase in the number of people seeking advice. The reason for this is that banks are now more restrictive with regards to housing, consumer, and overdraft credits than before the crisis.Therefore, it has become harder for the low-income part of the population to get credit and the average debt of the clients has declined slightly.

Looking at the long-term trend, the number of clients of the Vienna Debt Counselling Service has increased drastically in the last years. In 2009, approximately 9,400 Viennese needed debt counselling, while in 2007 there were just over 6,400. The number of clients who received counselling has increased by approximately 46%.


0

Men

2007

3,583

8,934

Women 2,826

2008

4,875

4,059

2009

5,308

4,088

8,934

2007 2008 2009

9,396

6,409

Pers

ons

Year

10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000

€ 50,000

€ 40,000

edne

ss

€ 30,000

inde

bt

€ 20,000

Med

ian

€ 10,000

€ 0 2007 2008 2009

Total € 46,790 € 44,331 € 43,753

Women € 42,643 € 40,214 € 39,065

Men € 50,000 € 48,387 € 47,762

€ 60,000

Year

Vienna Debt Counselling Service

▷In 2009, 9,400 people received counselling from the Vienna Debt

Counselling Service.

Fig. 31: Clients of the Vienna Debt Counselling Service by gender, 2007 – 2009 Sources: Vienna Social Welfare Fund, edited by Municipal Department 24

The median indebtedness of the clients of the Vienna Debt Counselling Service in 2009 was approx. € 44,000, a decrease from 2008. The reduction in median indebtedness can be attributed to the lower indebtedness of new clients, which is caused by creditors seeking legal recourse earlier than before.

▷The median indebtedness of the clients of the Vienna Debt Counselling Service in 2009 was approximately € 44,000.

Fig. 32: Median indebtedness of clients of the Vienna Debt Counselling Service, 2007 – 2009 Sources: Vienna Social Welfare Fund, edited by Municipal Department 24


THE EXPENDITURE OF THE VIENNA DEBT COUNSELLING SERVICE in 2009 was approx. €2.2 million. The City of Vienna funded €1.2 million, the rest was covered nearly in full by the Public Employment Service Vienna.


43

Services for Homeless People

in Vienna

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Services for Homeless People in Vienna

6. Services for Homeless People in Vienna


VIENNA HAS A COMPREHENSIVE SAFETY NET for homeless people and people in danger of becoming homeless, ranging from preventing eviction to providing sleeping and living facilities and reintegration programmes.

6.2. Innovations and legal basis

WITH THE DEVELOPMENT of the Vienna Integration Programme for Homeless People (Vienna Multi-stage Scheme),Vienna has achieved an excellent international reputation in homeless services over the last years.The Vienna Integration Programme for Homeless People with its wide range of services focuses on fast, unbureaucratic help for people who are homeless as a first stage. The second stage consists of helping people to live self-sufficiently (again) and includes various measures tailored to different target groups. People who no longer manage self-sufficient life in a flat of their own can live permanently in one of the socially assisted living facilities. Recent developments focus on improving access of homeless people to health care services, providing more targeted measures for women and families, and changing over to a system of direct support and benefits for the affected individuals. Securing tenancy to prevent homelessness is an important objective of Vienna’s social policy.

In Austria, support for homeless people falls into the competence of the provinces. The requirements for receiving assistance from the Vienna Homeless Services are based on the Vienna Welfare Assistance Act.

6.3. Organisation and services

The Vienna Homeless Services

▷have a good international reputation.

They are based on the Vienna Multi-stage Scheme.

THE VIENNA HOMELESS SERVICES are the most comprehensive service for homeless people in Austria. Since 2004, the Vienna Homeless Services have been a department of the Specialist Unit for Assisted Living in the Vienna Social Welfare Fund.This is where the operative planning and processing of subsidies takes place.With its subsidiary wieder wohnen – Betreute Unterkünfte für wohnungslose Menschen gemeinnützige GmbH, a non-profit organisation for assisted living and hostels for homeless people, the Vienna Social Welfare Fund is also operatively involved in providing homeless services. More than a third of accommodations are provided by wieder wohnen. Together with 21 cooperation partners it provided room for 3,907 homeless people in 57 sleeping and living facilities at the end of 2009.

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Services (number of places available) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Socially assisted living 40 258 258 376 400 412 520 751 775 774

Assisted living in flats 562 562 562 562 544 586 701 713 713 878

Targeted housing 299 259 259 271 271 338 343 321 323 322

Mother and child facilities* 236 267 267

Transitional housing 1,739 1,441 1,034 1,012 1,046 1,006 982 1,202 1,243 1,234

Night shelters 41 76 95 154 182 269 311 270 290 432

Total 2,681 2,596 2,208 2,375 2,443 2,611 2,857 3,493 3,611 3,907

*This responsibility was transferred from Municipal Department 11 to the Vienna Social Welfare Fund in 2007.

Table 6: Services of the Vienna Homeless Services, 2000 – 2009 Source: Vienna Social Welfare Fund

Night shelters provide homeless people with a place to sleep without bureaucratic requirements. This form of short-term accommodation is a transitional solution until the situation has been assessed and the individual referred to a facility of the Vienna Homeless Services.

Transitional housing is provided in temporary residential facilities for up to two years and prepares people for re-housing in their own flat or a suitable long-term accommodation. This is a low-threshold offer directed at homeless individuals and families.

Assisted living in flats requires a larger measure of independence from clients. Social workers provide mobile care with the aim of preparing clients to move into their own home within no more than two years and to be able to keep it for the long term.

Targeted housing facilities provide housing and care designed specifically for certain groups of people (e.g., people with mental health problems).

Mother and child facilities are designed particularly for homeless mothers of full age and pregnant women who need assisted living in order to stabilise their situation.

Socially assisted living is mainly intended for formerly homeless people who want to live independently but often need assistance due to their long-term homelessness and health issues.

6.4. Developments

IN THE LAST DECADE, Vienna has greatly increased the number of facilities for homeless people. While in 2000, the facilities were able to accommodate 2,682 people, the number had grown to 3,907 in 2009 – a 46% increase.This was not only due to the growing demand but also to the authorities closing private, sometimes illegal, facilities that did not meet the legal standards.

The number of clients has increased as well. 7,526 clients used Homeless Services in 2009, an increase from the total of 6,599 in 2008.

▷ The range of homeless services in Vienna has grown in the last years.

There are different services for different target groups and objectives.



Clients 2008 2009

Night shelters, transitional and long-term housing n % n %

Men 4,496 68% 5,279 70%

Women 2,103 32% 2,247 30%

Total 6,599 100% 7,526 100%

▷ The facilities of the Vienna Homeless

Services helped 7,526 people.

Adults and accompanying children; data for 2008 provided by the facilities. From 2009 on mainly centralised data processing. Missing gender information was extrapolated. 2008 without emergency beds; 2009 including shelters for non-eligible EU citizens in emergency situations.

Table 7: Clients of the Vienna Homeless Services by gender Source: Vienna Social Welfare Fund

It is striking that there are considerably fewer women than men among the clients of the services for homeless people (women account for only 30% of all clients), as they are more likely to enter a cohabitation of necessity to avoid homelessness. With targeted measures for women, the City of Vienna is trying to facilitate the access of women to facilities of the Homeless Services.

Looking at adult clients by type of accommodation12, the high rate of change in night shelters is particularly striking (an increase by 55% from 2008 to 2009). An emergency shelter was added to these due to the harsh winter of 2009/2010 in order to also provide shelter for people who would not have been eligible under the Vienna Welfare Assistance Act.The use of socially assisted living has also increased over the last years (89% more clients from 2005 to 2009).

▷ The density of homeless people, a

measure for the prevalence of homelessness, was 0.53%

in Vienna in 2009.

12 Includes double counts as people may switch from one service to another over the course of a year.


Fig. 33: Development of adult clients of Homeless Services by service, 2005 – 2009Source: Vienna Social Welfare Fund

2005 2006 2008 2009Year

Pers

ons

Socially assisted living

Assisted living in flats

Targeted housing

Mother and child facilities Night shelters

Transitional housing

0

8,000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

473

834601

1,686

1,396

648

898655

1,678

1,690

894

891645

1,916

140

1,888

895

995655

1,942

173

2,927

The density of homeless people, which refl ects the share of people accommo-dated in facilities of the homeless services in the total population, was 0.53% in 2009.



THE EXPENDITURE FOR HOMELESS SERVICES in Vienna was €34.4 million in 2009, more than doubling from 2005. However, this increase not only reflects the expansion of services but also improvements to the buildings (fire protection, wheelchair accessibility, separation of women’s and men’s accommodation). Cost contributions reduce the expenses slightly.

Expenditure for Homeless Services Expenditure 2005 Expenditure 2009

Homeless Services – total costs (including staff and benefits in kind)

14,627,000 34,414,000

Night shelters 1,369,000 3,846,000

Targeted housing 2,330,000 3,477,000

Transitional housing 5,425,000 11,477,000

Mother and child facilities 0 1,225,000

Assisted living in flats 3,489,000 7,377,000

Socially assisted living 2,014,000 7,012,000

▷ In 2009, the total expenditure for

homeless services was € 34.4 million.

Table 8: Expenditure for Homeless Services 2005, 2009 Source: Vienna Social Welfare Fund

6.6. Measures for securing tenancy as a steeringinstrument

THE SECURING OF TENANCY involves systematic information, counselling, and support for people at risk of becoming homeless. This makes it an important steering instrument of Vienna’s social policy in the effort to reduce homelessness and avoid its long-term social costs.

Eviction can often be prevented with timely support.This includes information regarding rights, setting up household budgets and repayment plans, and support in negotiations with landlords.Vienna has a long tradition of supporting people at risk of losing their flat. While initially only tenants of municipal housing could receive assistance from Municipal Department 11 – Vienna Youth and Family Office and Municipal Department 40 – Social Welfare, Social and Public Health Law, the service was expanded to include tenants in privately owned flats and housing cooperatives in 1996 with the creation of the Centre for Secure Tenancy (FAWOS), which is operated together with Volkshilfe Wien. Securing tenancy became an important objective of Vienna’s social policy.

The district courts inform FAWOS of eviction procedures and scheduled evictions. FAWOS contacts the affected tenants in writing immediately after receiving this information and informs them about the support and information services available in Vienna for people at risk of losing their home. At the same time, the competent regional office of Municipal Department 11 and the competent social welfare office of Municipal Department 40 are informed.

▷ Securing tenancy – preventing people

from being evicted from their flat – is an important objective of

Vienna’s social policy.




End of eviction procedure (Art. 569 GEO)

Social organisations

Property managementslawyers

landlords

Affected tenants

District courts inform City of Vienna (FAWOS) of:

FAWOS sends a letter to the affected tenants

Affected tenants contact the Centre for

Secure Tenancy

Counselling and support

Start of eviction procedure (Art. 33a MRG)

Fig. 34: Process of securing tenancySources: FAWOS, edited by Municipal Department 24

The objective is to avoid evictions, remove the individual causes, and secure tenancy for the long term. This strategy helps prevent not only the loss of homes but also resulting social problems and costs (secondary and tertiary preven-tion). The following issues can be avoided: ▷ growing indebtedness of households (rent arrears, legal expenses for lawsuits

and attorneys, eviction costs, etc.),▷ loss of household effects and clothing,▷ loss of job/income,▷ marginalisation of children, and▷ high public costs due to accommodation in homeless facilities and subsequent

reintegration.

The strengths of Vienna’s strategy for securing tenancy are:▷ systematic provision of information to affected people,▷ fast initial contact,▷ competent advice, and▷ unbureaucratic and fast fi nancial support in emergencies.

In 2009, Municipal Department 40 and FAWOS spent over € 4.3 million on securing tenancy for more than 3,500 households.

▷Any tenant in Vienna at risk of losing

their fl at can receive fast and unbureaucratic help and information.

49

Services for People with Disabilities in Vienna

Chapter 7

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7. Services for People with Disabilitiesin Vienna


THE MAIN OBJECTIVE OF DISABILITY SERVICES is the inclusion and participation of people with disabilities in society. The so-called normalisation principle aims to allow participation while respecting individual ways of life.

7.2. Vienna Equal Opportunities Act

THE VIENNA EQUAL OPPORTUNITIES ACT forms the basis for Vienna’s broad range of services for people with disabilities. It was developed by experts in the field with input from the Disability Interest Group and meets the requirements of the UN Convention on the Rights of People with Disabilities. It has the following goals and priorities: ▷ strengthening self-determination and freedom of choice ▷ promoting the participation of people with disabilities in social, cultural,

economic, and political life (accessibility) ▷ readability, social balance, low threshold, and equal access ▷ legal certainty ▷ clarity and transparency

The act contains regulations for the following services in different areas of life: ▷ housing and living environment: fully and partially assisted living ▷ education and work: measures to structure daily life, labour market and

vocational inclusion measures ▷ recreation and mobility: transport service, public transport tickets ▷ social life and communication: sign language interpreters, various aids

Specific measures such as early intervention for children and various information services are also stipulated in the act.

7.3. Organisation of the Vienna Disability Services

ALL VIENNA DISABILITY SERVICES are subsidiary. At the federal level, people with disabilities in Vienna receive assistance mainly from the Federal Social Welfare Office for the Disabled – Provincial Office for Vienna.The focus of their services is on vocational inclusion. Services of the Province of Vienna are supported and steered by the Vienna Social Welfare Fund and provided by institutions recognised by the Fund. The majority of subsidies are direct support for individuals; however, institutions and projects are also subsidised. A very important institution of the Vienna Social Welfare Fund is the Disability Services Information Centre, which assesses the individual need for support and promotion measures in early intervention, housing, employment, mobility, and disability aids together with the clients.

At the political level, current issues in equal opportunities and disability services are discussed in the City Council Commission on Disabilities, which also presents proposals and requests to the Vienna City Council. There is also an advisory body of the Vienna Provincial Government, which must be heard in all important decisions that concern the rights and interests of people with disabilities.

▷ The Vienna Equal Opportunities Act

forms the basis for the Province of Vienna’s broad range of services

for people with disabilities.

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7.4. Services and developments

The Vienna Disability Services support people with disabilities in leading a self-determined and independent daily life. The city provides benefits in kind and financial benefits in the following areas: ▷ early intervention and support programmes for infants, children, and ado

lescents ▷ school, vocational training, and apprenticeships ▷ inclusion into the labour market or sheltered workshops ▷ housing and assisted living ▷ disability aids ▷ information and peer counselling ▷ mobility ▷ self-help and empowerment

The largest areas of Vienna’s disability services in terms of clients and budget are housing, employment, and mobility. The activities in the areas of employment and housing are described below as an example.

▷ The disability services offered in Vienna range from occupational

therapy to job inclusion and services that help people keep their job.

Employment Vocational training and apprenticeships, services of the Vienna Work Assistance and wage subsidies for subsidised jobs are aimed at inclusion in the first labour market or allowing clients to keep a job. For some people with disabilities, occupational therapy is a first step towards gaining a foothold in the first labour market.

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Vocational training and apprenticeships: A number of partner organisations offer vocational training support programmes in order to facilitate the transition from school to working life.There, the young people also learn and practise important skills such as punctuality, reliability, etc., and get career counselling. They can try out different jobs in training workshops. Then they will usually decide on a profession. There are various forms of training, and depending on the skills and abilities of the individual, they can, e.g., complete an extended apprenticeship. In many cases they attain at least partial qualifications.

▷ Vocational training and apprenticeships

are important measures for including young people with

disabilities in the labour market.


25

180 160 140 120

Pers

ons

100 80 60 40 20

0 14–17 years17 years1414 ars 18–24 years24 years1818 ars 25–59 years2 59 yea25 arsars

2005 71 114 17

2007 76 125 35

2009 78 185 53

200

Age group

600

500

400

ons

Pers 300

200

100

0 20052005 20062006 2007200 20082008 2009200

Men 489 478 495 517 631

Women 438 436 401 463 476

700

Year


These measures are frequently jointly financed by the Public Employment Service Vienna, the Federal Social Welfare Office for the Disabled – Provincial Office for Vienna and the Vienna Social Welfare Fund.

In 2009, the Vienna Social Welfare Fund subsidised the vocational training of 363 people, of whom 316 received direct support (see Fig. 35). Between 2005 and 2009, the number of all people receiving subsidised training increased by 138 (+61%).The number of people receiving direct support has grown in all age groups since 2005, especially in the age group 18 to 24.

Fig. 35: Vocational training/apprenticeships: Subsidised persons by age groups, 2005, 2007, 2009 Source: Vienna Social Welfare Fund

Labour market inclusion: Finding a suitable job is often difficult for people with disabilities.The trained staff of the Vienna Work Assistance organisations help people with their job search and with writing professional applications and CVs. They provide support when jobs are at risk and advise potential employers. All of these services are funded by the City of Vienna in cooperation with the Federal Social Welfare Office for the Disabled – Provincial Office for Vienna and/or the Public Employment Service Vienna.

In 2009, a total of 1,107 people participated in labour market inclusion projects. In that number, there were more men than women. From 2005 to 2008, the number of participants was on a gradual decline, but it increased again in 2009 (+13% from 2008 to 2009).

Fig. 36: Persons in labour market inclusion programmes by gender, 2005 – 2009 Source: Vienna Social Welfare Fund


Occupational therapy: Occupational therapy provides work and daily structure after compulsory schooling for people with disabilities who cannot be inte-

grated into the open labour market in the medium term or permanently. Occu-

pational therapy aims to nurture and maintain individual abilities. Participants

receive a therapeutic allowance for their work. Some institutions also offer

work training (such as kitchen and restaurant work, shipping, or work in small

laundries) to support their clients in fi nding a job on the open labour market. The costs of occupational therapy are covered by subsidies from the City of Vienna and the attendance allowance (30%) of the clients.

In 2009, 4,365 people were in occupational therapy. This is an increase from 2005 by approximately 500 (+15%).

70

60

50s

40

Pers

on

30

20

10

0 18 – 24 years18 2424 25 – 39 years2525 393925 39 40 – 49 years4040 494940 49 50 – 59 years5050 595950 59 ≥ 60 years6600600

2005 25 67 50 38 4 2007 14 65 58 47 3 2009 22 73 71 68 10

80

Age group


Wage subsidies: The Vienna Social Welfare Fund subsidises wages for people with disabilities who, due to the type or severity of their disability, do not receive support from the Federal Social Welfare Office for the Disabled to secure a long-term job.This subsidy is intended to cover the loss in productivity resulting from the disability of the employee and can be up to 50% of the gross wage costs. The application can be filed either by the employee or the employer.

The number of subsidised individuals per year grew by 33% between 2005 and 2009, from 184 to 244. This also reflects the efforts of the City of Vienna for inclusion of people with disabilities in the first labour market.

▷ Occupational therapy provides daily

structure and teaches skills. However, it is also intended to contribute to the

reintegration of people with disabilities into the first labour market.


Fig. 38: People in occupational therapy, 2005 – 2009Source: Vienna Social Welfare Fund

Change from 2005

Number of persons

Pers

ons

Chan

ge fr

om 2

005

20053,700

4,400

4,300

4,200

4,100

4,000

3,900

3,800

0%

16%

14%

12%

10%

8%

6%

4%

2%

+0%

3,800

2006

+4%

3,947

2007

+8%

4,108

2008

+11%

4,200

2009

+15%

4,365

Year

2 2009200820072006200520005 2006 2007 2008 2009200600

Fig. 37: Wage subsidies: Subsidised persons by age groups, 2005, 2007, 2009Source: Vienna Social Welfare Fund

2,5802,727

3,0043,000

2,500 2,580

2,727 2,864

3,004 3,152

2,000

Pers

1,500

ons

1,000

500

0 2005 2006 2007 2008 2009

Women 1,133 1,198 1,256 1,335 1,385

Men 1,447 1,529 1,608 1,669 1,767

3,500

Year

982

1,106

1,221

Pers

ons

913

Year

800

1,400

1,200

1,300

1,100

900

1,000

2005 2006 2007 2008

1,318

2009

9

,

913

982

1,106

1,221


Housing A large number of people with disabilities live in their own flat or with their parents. Should this not (or no longer) be possible, the City of Vienna offers partially assisted living and fully assisted living services.

In 2009, some 3,200 people with disabilities made use of one of the housing options. The service was expanded gradually between 2005 and 2009, increasing the number of clients by 22%.

Fig. 39: People in partially or fully assisted living, 2005 – 2009 Source: Vienna Social Welfare Fund

Partially assisted living: Partially assisted living is intended for people who live in their own flat, a flat provided by a partner organisation of the Vienna Social Welfare Fund, or a shared flat, and do not need much assistance, as they can live well on their own with only occasional support. An assistance agreement is made that details the extent and type of assistance needed. This assistance is free of charge. However, running costs such as rent, energy, food, and social welfare assistance (e.g., home help) must be covered by the clients themselves.

The capacities of partially assisted living have been expanded strongly over the last years with the objective of supporting the self-sufficiency and independence of people with disabilities.With annual growth rates of 8 to 13%, the number of people in partially assisted living increased from 913 to 1,318 (by 44%) between 2005 and 2009.

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▷ The success of the City of Vienna’s

strategy to promote partially assisted living is reflected in the figures: its share increased from 35%

in 2005 to 41% in 2009.

Fig. 40: People in partially assisted living, 2005 – 2009 Source: Vienna Social Welfare Fund



Fully assisted living: Fully assisted living is intended for people with disabilities who can no longer or not (yet) live on their own and need full care and assistance. Nearly all clients live in individual rooms in shared flats. This service provides accommodation, meals, and care and assistance (household, health, work, finances, leisure time, mobility, etc.). Some shared flats have socalled training flats annexed to them where people can learn to lead a more self-sufficient life. While for some people, this form of living is a transition to a more independent life, fully assisted living can also be permanent if needed.

In 2009, 1,885 people lived in fully assisted living facilities. The capacities of fully assisted living were expanded continuously between 2005 and 2009. In the same time frame, the number of clients increased by 172 (+10%).

▷ The Province of Vienna played a

pioneering role in personal assistance. It was the first to introduce a direct

financial benefit (instead of a benefit in kind) that allows people with

disabilities to hire a personal assistant.

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Fig. 41: People in fully assisted living, 2005 – 2009Source: Vienna Social Welfare Fund

Pers

ons

1,713

Year

1,700

1,900

1,850

1,800

1,750

2005

1,785

2006

1,805

2007

1,839

2008

1,885

2009

,

5

713

1,7851,805

1,839 1,88

Attendance allowance supplement for personal assistanceWith the introduction of the Vienna attendance allowance supplement for personal assistance on 1 April 2008, the fi rst direct fi nancial subsidy – in addi-tion to attendance allowance and child benefi t – for people with physical disabi-lities was introduced in Austria. People living in private households in Vienna who are of working age and have a physical disability (attendance allowance levels 3 to 7), a high degree of self-suffi ciency, and are Austrian citizens or have an equivalent status can now get personal assistance for personal care, house-work, mobility, leisure time, and communication, provided they do not already receive a similar service.

The Vienna attendance allowance supplement for personal assistance aims to: ▷ increase self-suffi ciency and individual life planning,▷ see clients as experts on their own needs,▷ reduce the strain on family members,▷ support the (re)integration into the fi rst labour market and vocational training,

and▷ help clients remain on the labour market.

This service is provided in two models, the employer and the service model. In the employer model, the recipients of the Vienna attendance allowance supple-ment for personal assistance employ their own personal assistant. In the ser-vice model, the recipients contract personal assistance as a service from service providers.

In 2009, a total of 160 people aged 18 to 64 received fi nancial support. The total costs for this service were € 6.9 million in 2009. Between € 432 and € 7,900 were granted per person, the average monthly benefi t was approximately € 4,100.

€ 164,933,000 € 165,759,000

€ 200,000,000

€ 150,000,000

Budg

et

€ 188,910,000€ 188,910,000 € 198,955,000

€ 147,878,000147,878,000 147,878,000 € 164 933 000 € 164,933,000 € 165 759 000 € 165,759,000

€ 100,000,000

€ 50,000,000

€ 0 2005 2006 2007 2008 2009

mobility € 16,772,000 € 21,752,000 € 18,527,000 € 20,853,000 € 21,309,000

education, information, assistance € 14,817,000 € 17,104,000 € 14,330,000 € 18,870,000 € 20,754,000

housingh € 70,998,000 € 75,065,000 € 79,488,000 € 88,139,000 € 93,342,000

employment € 45,291,000 € 51,012,000 € 53,414,000 € 61,048,000 € 63,550,000

€ 250,000,000

Year



DISABILITY SERVICES ARE THE THIRD-LARGEST ITEM in the social welfare budget of the City of Vienna in terms of social spending after nursing care and meanstested basic benefit. Over the last years, many services for people with disabilities have been expanded. In 2005, the total expenditure for disability services was €147.9 million. In 2009, it was €198.9 million. This is an increase by 32%. Employment and education had the largest increases at 40% each, followed by the areas of housing and mobility with 26% each. The area with the highest costs is housing and living assistance, at approx. €90 million.

Fig. 42: Development of the disability services budget, 2005 – 2009 Source: Vienna Social Welfare Fund

In the areas of fully assisted living and employment, the clients pay a contribution (dependent on their income), which amounted to annual revenues for the City of Vienna between €14.6 million and €16.3 million in 2005– 2009.


57

Home Care and Nursing

Services in Vienna

Chapter 8

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Home Care and Nursing Services in Vienna

8. Home Care and Nursing Services in Vienna


THE CITY OF VIENNA has a dense network of high-quality nursing care and home care services.The wide range of extramural and mobile services and day centres allows Viennese in need of nursing and home care to stay in their own home for as long as possible. If they no longer can or want to live on their own, they can move to one of a number of residential and nursing homes, which have large capacities.

8.2. Innovations and organisation

THE NUMBER OF ELDERLY PEOPLE IN VIENNA will increase in the coming years. In view of the demographic developments, the Province of Vienna laid the foundations for the expansion and development of home care and nursing services in Vienna as early as 2004. The Geriatric Care Commission developed the strategy document Ageing with dignity in Vienna - staying active and self-determined, which was the basis for the implementation plan, the Vienna Geriatric Care Concept.

The Vienna Geriatric Care Concept has the following fundamental objectives: ▷ availability of sufficient home care and nursing services ▷ accessibility and affordability of the services for all residents of Vienna ▷ high-quality home care and nursing services ▷ wide range of services ▷ state-of-the-art home care and nursing services ▷ priority of extramural and mobile services before intramural services ▷ sufficient staff for home care and nursing services

In addition to covering the operating costs of the current services, the City of Vienna provides over €350 million for the expansion of home care and nursing services, which not only facilitates a unique expansion and modernisation programme of care facilities but also ensures the availability of these services for the future.

In 2004, the Vienna Social Welfare Fund was given the responsibility for the promotion, operative planning, and steering of home care and nursing services in Vienna. With the Residential and Nursing Home Information Centre and several branch offices of the Information Centre for Home Care and Nursing Services across Vienna, it offers comprehensive information, advice, and assistance for the Viennese population. Social Information Vienna and the Vienna Senior Citizens’ Office also provide information. People can choose freely among the facilities recognised by the Vienna Social Welfare Fund. The Vienna Social Welfare Fund also carries out operative tasks through its subsidiary companies.

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▷ The Vienna Geriatric Care Concept

and the requirements and development plan of Municipal

Department 24 are the basis for the unique expansion of home care

and nursing services in Vienna.

▷ The City of Vienna (together with

cooperating and recognised institutions) ensures the

availability, affordability, and accessibility of services.



8.3. Services

THE RESPONSIBILITIES OF THE AUSTRIAN LONG-TERM CARE provision system are distributed between the federal state, the provinces, and the municipalities. The federal state is mainly in charge of financial support, such as attendance allowance, while benefits in kind are mostly provided by the provinces and municipalities. With only few exceptions, home care and nursing services are not part of the public health care system in Austria but rather the social welfare system.

Financial benefits The size of the attendance allowance depends on the individual need for home care and nursing services, which is established in an expert’s report. It is independent of income and usually does not cover the full cost of care. Determined by the need for care in hours per month, there are seven levels of attendance allowance with different benefit amounts.

The vast majority of people in need of nursing care in Austria receive federal attendance allowance via the pension insurance companies. Only the small share of people who are not entitled to a pension and do not receive attendance allowance from any other federal institutions either (e.g., the Federal Social Welfare Office for the Disabled) can apply for provincial attendance allowance at Municipal Department 40.This group consists mainly of adults and children with disabilities and of working people who need assistance or care. The federal attendance allowance is mainly granted to elderly pensioners.

On 1 January 2012 the responsibility for provincial attendance allowance will be transferred to the federal level.

In 2008, some 83,000 people in Vienna received attendance allowance, of which 70,400 received federal and 13,400 received provincial attendance allowance.

The Austrian long-term care provision system is based both

on financial benefits (attendance allowance) and benefits in kind (intra mural, day care, and mobile services).

▷

Level Need in hours per month

Benefit in €

1 more than 50 hours 154.20 2 more than 75 hours 284.30 3 more than 120 hours 442.90 4 more than 160 hours 664.30 5 more than 180 hours 902.30 6 with exceptional need 1,242.00 7 and additional

burdens 1,655.80

Table 9: Attendance allowance levels and benefit amounts

Attendance allowance is mainly a competence of the federal

administration. On 1 January 2012, the responsibility for provincial

attendance allowance will be trans ferred to the federal level as well.

In 2008, some 83,000 people in Vienna received attendance allowance.

▷

▷


Fig. 43: Federal attendance allowance recipients in Vienna by level, 2001 – 2008Source: Association of Austrian Social Security Institutions

Level 5

Level 4

Level 6

0

70,00060,00050,000

30,00040,000

20,00010,000

Level 7

3,562

7,824

779

527

2001

Pers

ons

Year

Level 3 10,463

Level 2 19,933

Level 1 13,229

3,777

7,969

829

592

2002

10,506

19,968

14,104

3,613

7,984

839

586

2003

10,081

20,081

14,777

3,768

8,422

910

700

2004

9,925

20,715

15,797

3,898

8,741

986

754

2005

9,849

21,296

16,536

4,252

9,233

1,112

828

2006

10,373

22,413

17,312

4,477

9,665

1,270

843

2007

10,966

23,344

17,720

4,379

9,864

1,347

846

2008

11,106

23,979

18,060

10,000

8,000

6,000ons

4,000Pers

2,000

0 2001 2002 2003 2004 2005 2006 2007

Level 7 330 333 340 329 313 290 308

Level 6 649 631 625 610 594 526 532

Level 5 626 642 635 614 583 518 527

Level 4 1,056 1,127 1,183 1,205 1,194 1,187 1,228

Level 3 1,197 1,248 1,337 1,413 1,462 1,435 1,474

Level 2 2,031 2,260 2,474 2,591 2,656 2,846 2,982

Level 1 1,549 1,703 1,911 2,116 2,205 2,490 2,599

Year


Fig. 44: Vienna provincial attendance allowance recipients by level, 2001 – 2007 Source: Association of Austrian Social Security Institutions

▷ The Province of Vienna offers a wide

range of home care and nursing services. They are funded in part by

financial contributions by the patients (from income, assets, and attendance

allowance) and in part by provincial subsidies that depend on the

patient’s financial situation. Relatives are not required to pay back the

subsidies in Vienna.

Benefits in kind The provinces have committed themselves to providing benefits in kind to ensure a minimum standard of extramural/mobile, day care, and intramural services for people in need of home care and nursing services. The benefits in kind can be divided into three types: ▷ Intramural care ▷ Part-time intramural/day care ▷ Extramural/mobile care

Services in Vienna

Home help: light housekeeping and support with activities of daily life (personal care, shopping, warming of meals, etc.)

Home nursing care: nursing care, mobilisation, information and care instructions for patients, family, assistants, etc.

Medical home nursing care: medical nursing care provided for a limited time by a certified nurse at home if doing so can help shorten or avoid a hospital stay. This requires a doctor’s prescription.

Meals on wheels: 3-course lunch, delivered daily or on selected days.

Visiting and companion service: communication, accompanying clients when shopping or running errands, to doctors, podiatrists, etc.

Cleaning service: large and demanding cleaning tasks, such as cleaning windows, doors, floors, carpets, furniture, etc.

Laundry service: washing and ironing of laundry including pick-up and delivery, light mending.

Day centres for senior citizens: individual care and company during the day, structured daily routines, needs-based care, activities for groups and individuals, as well as social contact and the nurturing of personal skills and abilities.

Nursing homes: intramural care for people in need of nursing care includes residential services (accommodation and meals) as well as care and nursing services (including activities to structure daily life). Vienna also has an increasing number of facilities that provide accommodation with additional care and nursing services. Here, seniors live in an apartment of their own and can request home care and nursing services as needed.

Residential homes: unique to Vienna, especially with regards to the capacity. Residential homes for seniors allow people to live in an apartment of their own and offer meals as well as social and cultural activities.



Both nursing care (intramural care) and social welfare assistance (extramural and mobile services) are regulated in the social welfare assistance legislation of the Austrian provinces. In Vienna – as in most other provinces – people are legally entitled to care. Both extramural social assistance (financial support) and intramural social assistance (in-patient/intramural care) are subordinate to the recipient’s assets, i.e., the income (including attendance allowance) and any assets will be used first. Recipients of social welfare assistance services must also contribute financially. In Vienna, the size of the contribution depends on the income, the attendance allowance level, expenses, and the services used.

Vie

nn

a So

cial

Wel

fare

Fu

nd

8.4. Developments

THE CITY OF VIENNA has a wide range of high-quality mobile, extramural, day care, and intramural facilities and home care and nursing services. In the last years, the focus of expansion was on the mobile, extramural, and day care services, in keeping with the general principle of providing extramural rather than intramural care for as long as possible. However, capacities are constantly being increased in intramural care as well, and the quality of services is being improved with the unique expansion programme of building new care facilities. Vienna has a high density of both intramural and extramural services.

Financial benefits The number of attendance allowance recipients in Vienna has increased consistently since the introduction of the attendance allowance in 1993.While the number of recipients of federal attendance allowance increased by approx. 24% from 2001 to 2007, the increase in recipients of provincial attendance allowance was higher at approx. 30%.

Benefits in kind There has been an increased demand for nearly all services offered and subsidised by the Vienna Social Welfare Fund in the last years. Particularly high increase rates were recorded for home nursing, which increased by 78% from 2004 to 2009. The number of clients using the visiting and companion service also increased markedly (+77%).This service has an important social function, as many elderly people have only very few social contacts.

Mobile services have become more popular in the last years. This reflects the wish of many Viennese to receive care at home. Vienna gives priority to

mobile before intramural services.

▷


15%

55%

30%

Nursing care

Residential facilities with care and assistance

Residential facilities 15%%


Fig. 47: Intramural care, 2008 (capacity: 17,122 – base value) Source: Municipal Department 24 – Requirements planning 2009

Vienna has a high density of intramural care. This is mainly reflected in the number of residential facilities for elderly people. In 2008,Vienna had a capacity of 17,122 in residential and care homes (2009: 17,469). In 2008, some 55% of that number were nursing care beds, 15% were residential facilities with care and nursing services, and 30% were residential only, without additional home care or nursing services.


THE EXPENDITURE FOR BENEFITS IN KIND was €752.8 million in 2009, from which revenues of €289.7 million (contributions from income and attendance allowance) can be subtracted.

In 2008, residents of Vienna received some €316.7 million in federal attendance allowance, and the Province of Vienna paid €66.4 million in provincial attendance allowance. The federal attendance allowance expenditure for Vienna was approximately a fifth of the total Austrian expenditure (€1.7 billion).The expenditure of the Province of Vienna was also roughly a fifth of the total expenditure of the nine provinces for provincial attendance allowance (€346 million).

Vienna has a high density of intramural care.

▷


Fig. 45: Development of clients of social welfare assistance services in Vienna since 2004Source: Vienna Social Welfare Fund – Annual reports 2004 – 2009

non-medical home nursing caremeals on wheels

medical home nursing care

80%

200%

180%

160%

140%

100%

120%

100%100%

100%2004

Year

home help 100%visiting service 100%cleaning service 100%

136%103%

112%2005

102%105%99%

143%104%

121%2006

102%129%95%

156%108%

132%2007

105%148%93%

166%105%

138%2008

110%162%94%

178%107%

140%2009

117%177%95%

The number of people visiting day centres has also increased, which can be attributed mainly to the continued increase in capacities over the last years.

Fig. 46: Day centre visits, 2004 – 2009Source: Vienna Social Welfare Fund – Annual reports 2004 – 2009

0

160,000

140,000

120,000

100,000

80,000

60,000

40,000

20,000

Visi

ts

Year

Visits 117,936

2004

120,698

2005

121,410

2006

126,138

2007

137,887

2008

142,390

2009

Vienna

Summary of the Vienna Social Welfare Report 2010. Social welfare and security in Vienna –

an overview and analysis of services and target groups.

Documents

Social Welfare Report 2010 - Wien · · 2013-09-26Project and editorial team: Alexandra Aschauer, ... 1.3 Employment and labour market trends ... Summary of the Vienna Social Welfare