Needs and income transfers

Chapter 5 discusses possible needs with regard to income transfers. Historically, income transfers were the central element of welfare state responsibility covering what now is labelled old social risk. Their starting point has usually been that there should be at least a number of resources available for the individual person/family to ensure a certain minimum level of existence. In this, there is and was no guarantee as to what level the social benefits should be. Since then, but depending on the type of welfare state, there has also been a focus on whether, and if so how, the level of social benefits should be seen in relation to and in connection with the risk of living in poverty. Given that in many welfare states there are still people with an income that leaves them at risk of poverty, the poverty criterion does not seem to be the only way to define the need for income transfers. Against this background, the chapter discusses what is to be understood by minimum resources or as is also labelled basic needs and whether differences in these understandings are also reflected in how many actually live in poverty. The chapter will also touch upon how the public understanding of who is in need can influence what is actually given to people due to variations in the circumstances of why they are in need of a public transfer. This includes the perception of the level and generosity of the benefits, as well as whether there is fraud and/or misuse of benefits.