Municipalities must look for other ways to help poor people now that the publisher of Gift Cards is bankrupt. On those gift cards there was money for, for example, a new washing machine. The municipality of Venlo has already switched to the deposit of money.
In more than 120 municipalities, the Groupcard company took care of maps with a budget from the municipality. The publisher went bankrupt in August. This week Venlo has decided to temporarily deposit residents into their account that they received earlier through a gift card.
“How good,” responds economist Jasper J. van Dijk from the Public Economy Institute. “We see that people can do more with money than with a credit with all kinds of conditions.”
The gift cards from municipalities are intended to support people with a low income with discounts and credits for clothing, for example. Informal caregivers also receive an annual amount of 75 euros on a gift card in different places as a thank you for their commitment.
But according to Van Dijk, people make faster use of money when it is in their account. He quotes an American study that shows that people are willing to sell a 1 dollar food voucher for 80 cents, so that they can spend the amount freely.
There is a separate arrangement for each type of poverty
“A gift card gives less autonomy,” says poverty expert Tim ‘s Jongers. Moreover, the conditions of such a card often do not match the needs of the recipient. Many municipalities have put money for a new washing machine on the map. This can then only be used by local entrepreneurs. “But people just have to be able to go to the cheapest store,” says’ s Jongers.
The earmarked gift cards are related to the thinking in dozens of “sub -poverty” that distinguishes the youngers. Some examples are food poverty, hygiene poverty and exercise poverty. “For all those types of poverty we organize schemes such as the Food Bank and a free laptop. But we don’t tackle poverty ourselves.”
His observation is in line with recent research by the Ombudsman for Children. He concludes: “Despite countless initiatives such as school breakfasts, laptops and sports subscriptions, the well -being and development of children who grow up in poverty are under serious pressure.”
The youngers: “People who need help have to jump through thirty hoops before they get support. They really go crazy.”
Yet municipalities cannot just transfer money themselves to residents who would be the most helped with it. The national government is responsible for income policy. Municipalities may only pursue poverty policy.
“Nobody knows when something poverty policy and income policy is,” says Van Dijk. But the government is less inclined to tap municipalities for a very specific scheme, such as a discount on museums.
Another fear is that tax money is spent on, for example, drinks or cigarettes when poor people get ‘just’ money. Van Dijk does not expect it to happen a lot, but understands “it doesn’t look nice”. He finds it worse that the rest is the victim of that.
In Venlo, residents are therefore temporarily gaining money. The municipality promises to explicitly appoint the recipients for whom the money is intended.
“There is a kind of patronizing that people with a high income think they know what people with a low income should spend their money,” says Van Dijk. The prejudice states that poor people are not able to handle money, the youngers adds. “Most debts can happen to everyone.” Debts are, for example, caused by a bankrupt employer, illness or a divorce.
There are more municipalities that experiment with giving money to residents. That development is independent of the bankruptcy of GroupCard. “There is trust from it. That can also have a positive effect,” says Van Dijk.
The youngers argue in favor of making everything nationwide, which borders on income policy and is in line with IPE research. “A laptop control for children can perfectly rural.” In addition, it helps people in poverty if they have one care provider and the many counters are abolished, he thinks.
In Venlo they see the benefits of giving money: the credit can “be paid out relatively easily” and offers a solution in the short term, writes the mayor and aldermen in a letter to the city council. For the long term, “a structural solution” is still being sought.
Municipalities Must Look For Other Ways to Help Poor People Now That The Gift Card Publisher is bankrupt. Those Gift Cards Contained Money For, For Example, A New Washing Machine. The Municipality of Venlo has already switched to deposit Money for the Time Being.
The Company Groupcard Proviveded Cards with A Budget from the Municipality in More Than 120 Municipalities. The Publisher Went Bankrupt in August. This week, Venlo Decided to Temporarily Deposit the Money They PreviOutly Received via A Gift Card Into The Accounts of Residents.
“That’s good,” Responds Economist Jasper J. van Dijk from the Institute for Public Economics. “We see that people can do more with money than with a credit that has all kinds of conditions attached.”
The Gift Cards From Municipalities Are Intended to Support People with A Low Income With Discounts And Credits For, For Example, Clothing. Caregivers in Various Places also Receive an Amount of, For Example, 75 euros on A Gift Card Every Year as Thanks For Their Efforts.
But accordance to van Dijk, People make use of money more quickly when it is in their account. The cites an american study which shows that people are willing to sell a 1 dollar food stamp for 80 cents so that they can spend the amount freely.
For Every Type of Poverty There is a separate scheme
“A Gift Card Gives Less Autonomy,” Says Poverty Expert Tim ‘s Jongers. MoreOover, the Conditions of Such A Card Often Do Not Match the Needs of the Recipient. Many Municipalities Have Put Money On The Card for a New Washing Machine. That can only be used at local entrepreneurs. “But People should just be able to go to the cheapest store,” Says’ s youngers.
The Earmarked Gift Cards Are Related to Thinking in Terms of Boxes or “Sub-Poverties” That The Youngers Distinguishes. Some examples are food poverty, hygiene poverty and exercise poverty. “For all those types of poverty we organize Schemes Such as the food bank and a free laptop. But we don’t tackle the poverty itself.”
His Observation is in Line With Recent Research by the Children’s Ombudsman. He concludes: “Despite numerous initiatives Such as school breakfasts, laptops and sports subscriptions, the well-being and development of children growing up in poverty remains under serious pressure.”
‘S Jongers: “People who need help have to Jump Through Thirty Hoops Before They Receive Support. It Really Drives Them Crazy.”
However, Municipalities Cannot Simply Transfer Money to Residents Who would be Most Helped by It. The National Government is Responsible for Income Policy. Municipalities are only allowed to Conduct Poverty Policy.
“Nobody Knows when Something is Poverty Policy and Income Policy,” Says van Dijk. But The Central Government is less inclined to tick off muticipalities for a very specific scheme, such as discounts on museums.
Another Fear is that tax money will be on, for example, alcohol or cigarettes when poor people ‘just’ get money. Van Dijk Doesn’t Expect It To Happen Much, But Understands “That It Doesn’t Look Good”. He thinks it’s worse that the rest suffer as a results.
In Venlo, Residents Will Temporarily Receive Money. The Municipality Promises to Explicitly State to the Recipients What The Money is intended for.
“There is a child of patronizing attitude in that people with a high income they know what people with a low income should be their money on,” Says van Dijk. The preaching that they Cannot Handle Money is attached to Poor People, adds s’ youngers. “Most debts can happen to anyone.” Debts Are, For Example, caused by a Bankrupt Employer, Illness or Divorce.
More Municipalities are experimenting with giving money to residents. That development is separate from the bankruptcy of group card. “There is trust. That can also have a positive effect,” Says van Dijk.
The Jongers Advocates Making Everything National That Borders on Income Policy and is in Line with IPE Research. “A laptop Scheme for children can be Perfectly National.” In Addition, IT Helps People in poverty if they have one aid worker and the many counters are abolished, he thinks.
In Venlo they see the advantages of giving money: The Credit Can Be “Relatively Easily Paid Out” and Offers a Solution in the Short Term, the Board of Mayor and Aldermen Writes in A Letter To The Municipal Council. A search is still underway for “a structural solution” for the long term.