the minimum agreed upon consensual budget standards for the netherlands stella hoff

The minimum agreed upon

Consensual budget standards for the Netherlands

Stella Hoff

The Netherlands Institute for Social Research

Assessing the minimum standard

Issues to be addressed:

a) What goods and services are necessary?b) How much of these goods and services is needed?c) How much do the items cost?


‘The minimum agreed upon’

3 mixed focus groups, representing 5 household types, including single persons over 65 both sexes 3 income levels

1 homogeneous group, on social assistance benefit or with earned income up to 105% of statutory minimum income younger than 65 senior secondary level of education or less

3 sessions per focus group


The contents of the 3 sessions (1)

Session 1:the concept of poverty -> a generally accepted definitionlifestyle and basket of essential goods and services for first case: “35-year-old single man”

Session 2:lifestyle and basket of essential goods and services for second case: “75-year-old single man”; “single parent with 2 children”; or “couple without children”lifestyle and basket of essential goods and services for third case: “couple with 3 children”


The contents of the 3 sessions (2)

By the researchers: allocation of prices to baskets of goods and servicescalculation of budgets on the basis of the allocated prices, amounts and life spans

Session 3: adjustment of the compositions, prices and life spans of the baskets

of goods and services minister’s dilemma


Poverty is ...... when you never have got enough money to last until the end of the month, when the available money is already the minimum and it’s being spent only on the most essential basics: food, water, gas, electricity, a roof over your head.

... when you can get to the end of the month, but it’s difficult every time and there’s nothing left for extras.

... a restriction on the basic needs of life, it means having to deprive yourself of personal development, and being dependent, so that you feel less valued.

... when you can’t meet the basic needs of life, including things you don’t need every month, such as a washing machine or clothes.


The case of the 75-year-old single manTotal monthly budget Euro’s

Housing, after deduction of housing allowance 338

Insurances and savings 145

Food 160

Personal care 21

Clothing for adults 14

Furniture, domestic appliances, kitchen utensils 26

Cable, TV and computer 28

Holidays and going out 73

Leisure 7

Total 812


Comparison with the 35-year-old single manTotal monthly budget, in euro’s Man

aged 75Man aged 35

Housing, after deduction of housing allowance 338 326

Insurances and savings 145 130

Food 160 150

Personal care 21 25

Clothing for adults 14 24

Furniture, domestic appliances, kitchen utensils 26 24

Cable, TV and computer 28 63

Holidays and going out 73 117

Leisure 7 15

Total 812 874


Minimum income for older single personMonthly minimum income, including all tax credits and holiday allowance

Euro’s

State pension 979

Care allowance 46

Partial compensation for extraordinary health expenditure 12

Total 1037

Monthly budget deemed necessary by focus group 812

Deviation 225


Pros and cons of the method of CBS

Disadvantages:

• very labour intensive• mixed or homogeneous groups?• sensitivity for opinions about life

span and prices of the items• group processes

Advantages:

• insight into the opinion of average citizens regarding poverty and the minimum standard of living

the minimum agreed upon consensual budget standards for the netherlands stella hoff

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