2023-05-21 10:43:52
The Government has launched a series of aid for young people to alleviate the effects of the increase in the price of the shopping basket, low wages or the price of housing. Many of the announcements have been made by the President of the Government, Pedro Sánchez, during rallies in the campaign and electoral pre-campaign and then have been approved by the council of ministers. Some measures are new and others involve reinforcing existing ones.
1. Guarantee of 20% to finance the entrance of the house
The government approved a measure to guarantee 20% for the entry one living place through the Official Credit Institute (ICO), to which 2,500 million will be allocated. This support, aimed at young people up to 35 years of age and families with children and announced by the Chief Executive during a rally, may be 25% if the home has an energy rating higher than ‘D’ and that the program will remain in Valid until December 31, 2025, extendable for two more years, at no cost to the mortgaged party.
The income of the beneficiaries they must be less than 4.5 times the public multiple-effect income indicator (IPREM), which is 37,800 euros in 2023 or double (75,600 euros) if they are a couple. For families with minors, the limit will increase by 30% for each child and, if the family is single-parent, it may do so by up to 70%. The Executive estimates some 50,000 people who will be able to benefit from this measure. This initiative has no cost for the State unless the beneficiary defaults.
2. Cheaper train tourism
In another act before the electoral campaign, Pedro Sánchez announced a 50% discount on the Interrail for young people between 18 and 30 years old from June 15 to September 15. In turn, for promote domestic tourism, said that the discounts will be 90% on railway lines that depend on the State and 50% on high-speed for the same dates. With this 50% discount, a young person between the ages of 12 and 27 could travel on trains in 33 European countries for 7 days in second class for 132 euros (without discount, 264). In first, the same subscription will be 167.50 euros instead of the current 335. Every year, around 980,000 people get on board and travel the Old Continent with these passes. There are two types of subscriptions: the global one, to be used in the 33 countries; and the ‘One country’, for a single unique country
3. Tax advantage for the landlord who rents to young people
Although it is not directly aimed at young tenants, this measure can certainly benefit them. The housing law provides for an increase of up to 90% in the reduction of income for the owner who rents a home to a young person under 35 years of age. The general reduction for the owner, without other requirements, which is currently 60%, drops to 50%.
4. Study scholarships
The royal decree of scholarships for the 2023-2024 academic year includes a novelty: an increase of 900 euros in the residence supplement, which is given to those who study outside their home. The 1,600 euros that were granted before are now 2,500. The Government approved a historic investment in scholarships: 2,520 million euros, from which more than a million young people will benefit, both for university studies and vocational training
5. Youth Rental Bonus
This measure was also launched last year for young people between 18 and 35 years of age. They are 250 euros per month, for which work income must be proven and the annual income must be three times less than the IPREM. It is granted for two years. Tenants whose rent does not exceed 600 euros per month and 300 euros per month if it is for a room can apply for this aid. Given the established requirements, it is estimated that only between 60,000 and 70,000 people will be able to benefit. The budget allocation is 200 million.
6. Minimum Vital Income
The Government has revalued the amounts of the minimum vital income (IMV) a 8,5%, as well as the entire range of pensions. Young people over 23 years of age, as a general rule, have the right to apply if they meet specific income requirements, in addition to having resided in Spain and having lived independently for at least two years prior to the application.
For younger people, it will be available to women of legal age who are victims of gender violence or victims of human trafficking and sexual exploitation; people between the ages of 18 and 22 who come from residential centers for the protection of minors or are absolute orphans; and the homeless.
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