Portugal's new welfare reform risks pushing 40 into poverty, warns anti-poverty coalition

Portugal’s new single social benefit (PSU) risks deepening poverty and could push the national poverty rate to 40%, according to the largest confederation of solidarity institutions. The *Confederação Nacional das Instituições de Solidariedade* (CNIS) warned on Friday that the obligation to work 15 hours weekly in social support organisations treats labour “as a punishment” and will exclude vulnerable beneficiaries from essential support.

The CNIS statement, published on 19 June 2026, directly contradicts government claims that the PSU will integrate recipients into the labour market. Instead, the confederation argues that the requirement—one of the flagship measures of the PSU—will push more households below the poverty line by making benefits conditional on availability for unpaid or precarious work. “This law frames work as a penalty rather than an opportunity,” a CNIS spokesperson told *Observador* .

The warning comes as the European Anti-Poverty Network (EAPN) also criticised the PSU for failing to lift people out of poverty. In a separate analysis published the same day, EAPN described Portugal’s existing “minimum survival social benefits” as inadequate and incapable of removing individuals from poverty traps. “These payments do not meet basic needs and leave recipients in chronic deprivation,” the network stated .

Critics further highlight that fewer than 15,000 unemployed people are currently engaged in the mandatory social work programme, despite the PSU’s requirement that recipients demonstrate availability for such roles. The president of the Institute for Employment and Vocational Training (IEFP) confirmed that only a fraction of registered jobseekers are participating in the scheme, raising doubts about its feasibility and fairness .

Civil society groups have also condemned what they describe as stigmatising rhetoric surrounding the PSU. An association of pensioners accused policymakers of amplifying prejudices against the poor and those with intermittent work histories, framing these narratives as socially dominant trends. “The stigma attached to poverty and precarious labour is being weaponised,” said José João Lucas, a spokesperson for the group .

The PSU, introduced as a flagship welfare reform, now faces mounting opposition from both grassroots organisations and institutional actors. With poverty projections rising and participation in mandatory work schemes remaining critically low, the government’s strategy is increasingly under scrutiny. The CNIS has called for an immediate review of the law to prevent further exclusion of those most in need.