The Independent Accountability Authority, referred to as AIRef, released its initial assessment of the new minimum vital income policy in Spain. This subsidy, established as a national measure in June 2020, has steadily expanded its reach. By the end of 2021, it was supporting roughly 280,000 households across the country. Early analyses describe the IMV as a powerful instrument for reducing poverty, yet they also highlight that its implementation could be refined and that more information is needed for prospective beneficiaries. Estimates from AIRef indicate that around 400,000 families are eligible for the subsidy but have not formally applied. If fully deployed, the IMV could cover about 60 percent of households at risk of poverty in Spain.
The report also notes a discrepancy in uptake: Social Security reportedly rejects a sizable share of applications, while many eligible individuals do not submit a request. This paradox, identified by the technicians at AIRef under the leadership of Cristina Herrero, reflects the gap between eligibility and active participation in the program. Up to December 31, AIRef tracked more than 1.5 million applications, yet about 73 percent of decisions were rejections tied to income, asset levels, or cohabitation status. This suggests barriers in the process or in the eligibility checks that deter or disqualify applicants who might still benefit from IMV.
According to AIRef, there remains room to improve the application process. The organization notes that as the subsidy is rolled out to its full capacity, some 700,000 potential beneficiaries could be reached beyond the currently identified 280,000 households, while the annual cost to public coffers could approach 2.8 billion euros. Data from Social Security show that IMV coverage has expanded in recent months to include about 450,000 families. Yet, the figures clearly indicate that many eligible households will not gain access through the current framework. This pattern mirrors international experiences with complex benefit programs, where households with one primary income source face distinct challenges in qualification and receipt. AIRef emphasizes that this phenomenon affects households likely to gain the least from modest increases in income.
AIRef’s assessment highlights that once the subsidy operates at full capacity, it will only be able to enhance the coverage already provided by regional minimum income schemes. In particular, an estimated 250,000 additional families could join the network of protection against severe poverty across Spain. The agency notes that IMV, when combined with other minimum income programs, could potentially cover around 60 percent of households at risk of poverty if fully implemented. These projections underscore the potential for IMV to play a central role in Spain’s social protection landscape while also signaling the need for ongoing refinements to reach all eligible households more efficiently and transparently.