Luxembourg is often cited as one of the wealthiest countries in the world – but even in this affluent Grand Duchy, poverty remains a real issue. Since more than 18% of the population is considered at risk of poverty, the government is currently working on a national action plan to tackle the problem.
In a recent conversation with RTL, Family Minister Max Hahn highlighted steps already taken and assured that the government recognises the need for further action. Over the next two months, intensive consultations will therefore be held and by the end of the year, the government aims to present the country’s first national action plan to combat poverty.
In the coming weeks, both major social sector stakeholders and people who are directly affected by poverty will be involved in drafting the plan. On the government side, all relevant ministries are expected to collaborate more closely, according to Hahn.
The minister suggested that some processes could be better aligned, such as the criteria required to apply for financial aid, which currently vary depending on the authority. He also highlighted digitalisation as a key element in simplifying procedures – for instance, reducing the need to repeatedly submit the same documents.
The family affairs minister pointed to an example from 1 January this year, where recipients of the social inclusion income (REVIS) were automatically deemed eligible for other schemes such as the cost-of-living allowance and energy premium.
The need for concrete measures is also a point of agreement among people working in the social sector, with three stakeholders arguing for different solutions in an RTL panel discussion on Saturday.
Raoul Schaaf, Director of the National Committee of Social Defence, said that more needs to be done to address poverty among the elderly. Schaaf, alongside Paul Heber from Unicef Luxembourg and Nadia Dondelinger from the Association of Social Welfare Offices, all agreed that the issue of the “working poor” – people who are employed but still live in poverty – is another major concern in Luxembourg.
In this context, Hahn referred to a draft law initially submitted in 2022, which has since been revised and recently presented to the relevant parliamentary committee. A key element of that legislation is the supplement for elderly people (Compa), which would allow those eligible to receive up to €900 in additional support, calculated in relation to median rent levels.
According to Hahn, this support is intended to give recipients some extra spending money – for expenses like a “haircut” or a “glass of wine” – but it also includes coverage for “primary necessities” such as access to TV and internet, hygiene products, and household needs like bedding and laundry.
Hahn noted that a supplement equivalent to a tax credit had been introduced, providing an additional €90 per month for those receiving REVIS. Crucially, this includes not only those entirely dependent on social income, but also people who are working and receive partial support.
In such cases, households are eligible for what is known as the ‘Supplement REVIS’, which was also increased by €90. When asked whether Luxembourg’s minimum wage is too low and should be raised, Hahn declined to comment, stating that the issue falls under the remit of the labour minister.
Those affected can calculate their entitlements using online tools available on the government portal fns.lu, which provides simulations for REVIS, Suppplement REVIS, the cost-of-living allowance, and the energy premium.
