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Child benefits will no longer be taken into account as the income of poor families when assessing their financial situation in order to receive assistance under a social contract.This resolution was signed by the Prime Minister of the Russian Federation Mikhail Mishustin. It is expected that due to this measure, the number of new social contracts will grow by about 118 thousand annually. Increasing the availability of government support for citizens will lead to an increase in their incomes and an improvement in the quality of life, experts point out. How the financial situation of low—income families will change is in the Izvestia article.

A change for the better

The rules for assessing the financial situation of low-income families will change. Uniform allowances for childbirth and child care will no longer be taken into account as income when applying for state support involving the conclusion of a social contract. The resolution has already been signed by Mikhail Mishustin, the government's press service reports.

ребенок
Photo: Global Look Press/Marijan Murat

"In other words, this amount will not be included in the calculation of their average per capita income when applying for such support," the head of the cabinet explained during a meeting with deputy prime ministers.

At the end of December, Russian President Vladimir Putin instructed the government to exclude the unified child benefit from the list of incomes of needy families.

According to expert estimates, the measure will allow for an additional 118 thousand social contracts to be concluded annually. This mechanism of state support, according to the head of the Cabinet, has proved its effectiveness and relevance. At least 100 billion rubles will be allocated to Russian regions over the next six years to co-finance expenses.

A social contract is a special agreement that is concluded between social protection authorities and low—income citizens. Social contracts allow you to retrain and upgrade your qualifications, open your own business or develop a personal subsidiary farm. Contracts also provide more basic things, such as the purchase of clothes, shoes, and school supplies for children. The social assistance tool is available in all regions of the Russian Federation.

In addition, it follows from the Cabinet's press release that priority in providing state support in the form of social contracts will be given to large families and participants in a special military operation.

Accessibility extension

A social contract is an agreement between a citizen and a social protection agency that provides targeted assistance under certain conditions. In particular, such a contract can be concluded by Russians whose income is below the subsistence level, explains David Adams, CEO of the professional legal group AID.

деньги
Photo: IZVESTIA/Dmitry Korotaev

The implementation of the social contract program is under strict control, recalls the head of the scientific laboratory "Quantitative Methods of Regional Development Research" of the Russian University of Economics. Plekhanova Elena Egorova.

— It is important to understand that assistance is assigned for a certain period of time — from three months to one year, based on the content and scope of the social adaptation program, which will be specified in the contract, — the expert clarifies.

At the same time, starting in 2024, when concluding a social contract for starting a business or developing a personal subsidiary farm, testing is carried out to determine the level of entrepreneurial competencies.It can be said that this program will not affect those households that do not have a real interest in getting out of a difficult situation, since the regulatory framework very strictly defines the conditions for the implementation of a bilateral contract between the state and a citizen, adds the interlocutor of Izvestia.

подпись документов
Photo: RIA Novosti/Vitaly Ankov

Nikita Chaplin, a member of the State Duma Committee on Budget and Taxes, is convinced that the cabinet's decision is an important step in supporting low-income families.

Previously, when assessing a family's need for a social contract, all types of income, including child benefits, were taken into account. This created a paradoxical situation where receiving benefits could deprive a family of the opportunity to receive more substantial support under a social contract," the parliamentarian points out.

The exclusion of child benefits from the calculation will make the social contract more affordable for families with children in need of assistance. According to the MP, this means that more families will be able to retrain, start their own business or receive funds for the development of a subsidiary farm, which will eventually lead to an increase in their income.

As the government expects, such an adjustment will allow for an additional conclusion of more than 100,000 social contracts per year. As a result, the coverage of the program will expand, and the number of citizens who will be able to use state support to improve their financial situation will increase, Adams emphasizes. For many, a social contract can become a tool to get out of a difficult life situation.

Chaplin is confident that social justice and assistance to those who need it most will also enhance the decision to give priority to large families and participants in social work when concluding social contracts.

отдел кадров
Photo: RIA Novosti/Mikhail Mordasov

However, it is important that the regions effectively implement the program, allocating funds in a timely manner and helping families find employment or develop business plans, warns Sergey Dovgal, head of the legal department of the independent trade union Novy Trud.

Simple mechanism

To conclude a social contract, low-income citizens need to follow a few simple steps. The first one is to submit an application. It can be done:

— through Gosuslugi (available in most regions of the Russian Federation);

— at the social protection authorities at the address of permanent or temporary registration;

— in offices of multifunctional centers.

госуслуги
Photo: IZVESTIA/Dmitry Korotaev

The application must contain information about the composition and income of the family.The right to conclude a social contract will be granted if they are below the subsistence level.

To confirm this right, you may need:

— passport;

— marriage certificate;

— birth certificate of a child.

The full list of documents will be indicated after the application is submitted.

The funds of the social contract can be used in different ways. However, it is important to understand that the money is given for specific stated purposes. The amount of government support will be determined by the task at hand. When looking for a job, in particular, payments will be received at the conclusion of the contract and within three months from the date of employment. Tuition compensation is limited to 30 thousand rubles. Scholarships are provided for the period of study.

A similar amount will be provided for entrepreneurial skills training. A one-time payment of up to 350 thousand rubles is available for opening your own business. rubles'.

деньги
Photo: IZVESTIA/Dmitry Korotaev

The state will provide up to 200 thousand rubles for the development of a personal subsidiary farm. Compensation for training in its management skills will also amount to 30 thousand rubles.

The goals set in the social contract are mandatory, you can not spend money on something else. The work done will have to be confirmed by commodity and cash receipts, purchase and sale agreements or receipts. If the terms are violated, the contract is terminated and payments are terminated.

In sufficient volume

Allocating at least 100 billion rubles to the regions over six years to co-finance social contracts is a significant investment in social support for the population, Nikita Chaplin believes.

The amount of payments under the social contract depends on the region and goals (more money will be allocated for business, less for current needs), notes Sergey Dovgal.

деньги
Photo: IZVESTIA/Sergey Lantyukhov

Chaplin identifies several factors that will determine whether the regions will have enough of these funds. Everything will depend on inflation, the number of people willing to sign contracts, and the efficiency of using local funds.

The experience of previous years, however, shows that the financing of social support requires constant review and possible increase, says David Adams. This is especially true if the demand for social contracts continues to grow.

Nikita Chaplin, however, has no serious concerns about this: the federal co-financing mechanism, introduced in 2020, has already proved its usefulness, and therefore has been extended to all regions of Russia.The social contract program has been recognized as effective and shows good results, confirms Elena Egorova.

Statistics show that the effectiveness of the social contract is high. Over the years of the program, 78% of the program participants have been able to increase their incomes, and 42% have been able to get out of poverty," she draws attention.

проценты
Photo: IZVESTIA/Zurab Javakhadze

With proper allocation and focus on targeting, the allocated funds should be sufficient, Chaplin admits. Nevertheless, strict control over the execution of the program is necessary.

In general, the government's decision will allow more citizens to take advantage of state support measures, as well as create additional incentives to increase their financial independence, sums up David Adams. However, it is important to remember that other support measures, such as affordable housing and preferential education, are important for a more effective fight against poverty, I am convinced Sergey Dovgal.

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