Social protection and inclusion policy responses to the COVID-19 crisis. Luxembourg.

Report (2021)

Between Monday 3 February 2020 and Sunday 18 April 2021, the total number of confirmed COVID-19 cases per 100,000 people was 6,740 for the EU-27 as a whole; in Luxembourg, it was 10,545. The total number ... [more ▼]

Between Monday 3 February 2020 and Sunday 18 April 2021, the total number of confirmed COVID-19 cases per 100,000 people was 6,740 for the EU-27 as a whole; in Luxembourg, it was 10,545. The total number of deaths per 100,000 people was 126 for the EU-27, and also for Luxembourg. Section 1 presents more data on the impact of the pandemic on the demographic, economic and social situation. A total of 14 different social protection and inclusion measures deployed by the Luxembourg government to counter and mitigate the effects of the pandemic are described in Section 2 in terms of the targeted population, the timing and their novelty. These measures relate to: unemployment benefits; job protection; sickness benefits and sick pay; health insurance; minimum-income schemes and other forms of social assistance; housing support; leave for parents whose children are unable to attend school or a pre-school service by reason of COVID-19; and leave for family support. This section also analyses the social impact and the relevance of these measures, including, where appropriate, the concrete description of the benefits and (estimated) numbers of targeted populations and/or effective recipients. Some of these measures are only of a regulatory nature and do not require any expenditure of money by the government or others (e.g. the National Health fund, employers or landlords), others are associated with more or less extensive expenditure, depending on whether they are aimed at many potential recipients or only a few. In Section 3, a preliminary and tentative estimate of the induced costs of these measures is provided. According to this, the global cost would amount to roughly €996 million in 2020, which represents around 1.5% of 2019 GDP. Some of the measures have been new ones, whereas others have only been adjustments or extensions of existing measures; in either case, not all of them will continue to be in force once the pandemic is over (some have already stopped). Whether, or the degree to which, any of these temporary measures will become permanent is not predictable at this time. In general, the social protection system in Luxembourg has proved quite resilient to the COVID-19 crisis. However, a number of shortcomings have also been highlighted, several of which will most probably persist. This is the case for the growing number of people at risk of poverty, which has not been offset by the minimum income reform. The increase in the percentage of NEETs (young people not in employment, education or training), as well as in the number of unemployed people aged 16-29, is to be mentioned, together with the fact that there are still groups that are not covered by the national health insurance system. Specific groups such as non-EU migrants and homeless people have been particularly exposed to the crisis and they are also in general more heavily exposed to the risk of poverty. The shortcomings of the housing market, with ever growing prices and the spill-over effects on rent levels, have certainly been somewhat cushioned by the measures, but there have been no structural changes to a situation that keeps getting worse. In addition, the crisis has exacerbated the crucial importance of the medical workforce, which is in danger of shrinking in the next years because of upcoming retirements. Finally, the crisis has revealed the problem of self-employed people not being sufficiently covered by social security cushions. There is also a need to rethink social policy beyond the Luxembourg borders, and to improve the European co-ordination of national healthcare systems. [less ▲]