Spending Review 2022–2026 - Phase 2

Minimum Income Scheme (IMV)

Madrid, 4 February 2026

AIReF Public Expenditure Evaluation Division

Content

1 Impact of the IMV on poverty
2 Non-take-up
3 Proposals

Impact of the IMV on poverty reduction

Current IMV coverage
Potential IMV
Full poverty coverage

COST

EUR 3.106 billion
EUR 6.145 billion
EUR 9.110 billion
COVERAGE

(% of households in poverty covered)

21.3%
54.6%
100%
RATE

(reduction in the share of households in poverty)

-9.5%
-16.2%
-100%
GAP

(reduction in the distance to the poverty threshold)

-30.3%
-58.2%
-100%
Note: 2024 data. IMV refers to both the basic and the full IMV. Poverty is defined as income below 40% of the national median income.

Impact of the IMV on child poverty reduction

Current IMV coverage
Potential IMV
Full poverty coverage

COST

EUR 1.991 billion
EUR 3.658 billion
EUR 4.623 billion
COVERAGE

(% of households in poverty covered)

29%
63%
100%
RATE

(reduction in the share of households in poverty)

-17.1%
-29.4%
-100%
GAP

(reduction in the distance to the poverty threshold)

-36,6%
-65.1%
-100%
Poverty is defined as income below 40% of the national median income.

Lessons learned from non-take-up

TRENDS IN NON-TAKE-UP

IMV (basic + full)

2021
57%
2022
58%
2023
56%
2024
55%
▼ Only a 2 percentage-point reduction over four years

CAPI (Child Support Supplement)

2022
76%
2023
73%
2024
72%
▼ No improvement: three out of four eligible households do not apply

DESIGN WEAKNESSES

(AIReF - 4 Opinions)

  1. Assessable income:
    Previous-year income rather than current income → repayments
  2. Household unit definition:
    Difficult verification → benefit denials
  3. Limited integration with other benefits:
    Regional minimum income schemes
  4. In-work benefit:
    Negative impact on labour force participation
  5. Access barriers:
    Lack of information and administrative complexity

Geographic analysis of non-take-up

Interactive tool for regional minimum income schemes and the IMV by Autonomous Community

Proposals

PROPOSAL 1

Define IMV objectives with clearly specified indicators and performance levels

PROPOSAL 2

Promote automated verification of benefit eligibility requirements

Move towards granting the Child Support Supplement (CAPI) based on Civil Registry affiliation data

PROPOSAL 3

Comprehensively redesign the IMV in-work incentive scheme

PROPOSAL 4

Ensure the continued publication of harmonised and comparable statistics on minimum income programmes

PROPOSAL 5

Strengthen information campaigns and personalised support to streamline the application process, improve coverage rates and enhance beneficiary inclusion

End of the first IMV evaluation cycle – opinions (5 opinions, 9 modules)

This year, the fifth annual Opinion foreseen in the IMV evaluation plan will be issued.

This will be the last unless there are regulatory amendments, significant design changes or other extraordinary circumstances.

José Abascal, 2-4, 2nd floor 28003 Madrid
+34 910 100 599
evaluacion@airef.es
www.airef.es/en

Independent Authority for Fiscal Responsibility (AIReF)
@AIReF_es