Minister presents changes to Luxembourg's social system

Luxembourg's family minister Corinne Cahen has presented key changes to the Social Inclusion Bill to the Family and Intergration Commission.

The legislation is planned to replace the current minimum guaranteed income system, the Chamber of Deputies, Luxembourg's parliament, said in a statement on Monday.

In total, 23 amendments were sent for an opinion from the Council of State, an assembly of 21 councillors who act as the consultative body in Luxembourg's legislative process.

Among them are proposals for state payments to self-employed people facing a drop in income – due to an accident, for example – as long as they have made at least two years of social security payments, the Chamber said.

Funds would also be made available for self-employed people looking to set up a company, are supported by a "recognised organisation" and have prepared a business plan, the Chamber said.

The draft legislation also sets out planned payments for households with children that are likely to receive family allowances.

The 15% increase from current payments should cost the government €7 million and is aimed at improving "the living conditions of children in low-income families", the Chamber said.

There would also be a transition phase for some retirees who would lose out under the new system.

They would get the same amount of state money as they do now.

That is estimated to cost €775,000, the Chamber said.

The reforms were presented to deputies in January 2017.