Impact of in-kind benefits on income distribution and on vulnerable populations

Projects funded under this destination should contribute to the following expected impacts in the Horizon Europe Strategic Plan 2025-2027^[1]:

• Strengthening social and economic resilience and sustainability
• Boosting inclusive growth and reducing vulnerabilities effectively

The expected impacts reflect the two-pronged nature of the destination. On the one hand, research funded by this destination will improve the understanding of how the macro drivers of change (technological change, climate change, new global trade patterns, along with migration, human mobility, and other demographic changes) impact society and inform policy makers on how to mitigate negative consequences and harness newly created opportunities. The results obtained should improve the understanding of the interplay between different drivers of change and their social, ethical, political, and economic implications. The improved understanding of these challenges and their economic, social, and distributional impacts will fill in the research gaps while also inform the design and assessment of policies addressing existing and emerging challenges, including in the areas of education, well-being and mental health.

On the other hand, research and innovation investment should be geared towards deepening the understanding of how ongoing changes impact society, with a specific emphasis on the key objectives of boosting inclusive and sustainable growth and effectively reducing vulnerabilities, poverty and inequalities. This knowledge should provide valuable insights to policymakers to design and assess policies that effectively address vulnerabilities while capitalizing on emerging opportunities.

Overall, the destination’s activities will help promote the EU’s inclusive growth, resilience, and fair transition towards climate neutrality, by providing solid analytical evidence to implementing actions related to:

• The European Pillar of Social Rights, and its Action Plan with its three ambitious targets (78% employment rate, 60% of population with yearly training, and reduction of the number of people at risk of poverty and social exclusion by at least 15 million by 2030)
• the European Education Area and its EU-level 2030 targets
• The Union of Skills (including envisaged initiatives on skills portability and the European Strategy for Vocational Education and Training, the Pact for Skills and the Skills Agenda)
• the first-ever EU Anti-Poverty Strategy and the European Affordable Housing Plan
• The Union of Equality policies and strategies, including:
  • the Strategy for the Rights of Persons with Disabilities 2021-2030^[2] (in line with the United Nations Convention on the Rights of Persons with Disabilities^[3]); the European Accessibility Act (Directive 2019/882), and the European Disability Card
  • The Gender Equality Strategy 2020 – 2025 and the Directive combating violence against women and domestic violence
  • EU Anti-racism Action Plan 2020-2025
  • The Strategic EU Framework for Roma Equality, Inclusion and Participation 2020-2030
  • The LGBTIQ Equality Strategy 2020-2025
• The Communication on Demographic change in Europe: a toolbox for action
• The EU’s just transition policy framework, in line with the 2040 Climate Target Plan, including the Just Transition Mechanism, the Social Climate Fund, and the Council Recommendation on ensuring a fair transition towards climate neutrality
• The new Pact for European Social Dialogue and the Council Recommendation on strengthening social dialogue in the EU.
• The European Child Guarantee
• The Council Recommendation on adequate minimum income
• The Commission Communication on a comprehensive approach to mental health
• The new Pact on Asylum and Migration and its accompanying actions, initiatives and legislation.

A new European Partnership on Social Transformations and Resilience^[4], focused on the social sciences and humanities (SSH), will be launched to make use of their potential to foster resilience, fairness and inclusiveness, and social cohesion in the light of changes in climate and environment, technology, demography, and unexpected shocks. The Partnership will fund research and innovation activities in the areas of the future of work, modernisation of social protection and essential services, education and skills development and a fair transition towards climate neutrality.

Applicants are encouraged to consider, where relevant, the services offered by the current and future EU-funded European Research Infrastructures, particularly those in the social sciences and humanities (SSH) domain^[5].

Where applicable, proposals should leverage the data and services available through European Research Infrastructures federated under the European Open Science Cloud (EOSC), as well as data from relevant Data Spaces. Particular efforts should be made to ensure that the data produced in the context of this research is FAIR (Findable, Accessible, Interoperable and Re-usable).

To maximise the impacts of R&I under this Destination in line with EU priorities, international cooperation is encouraged whenever relevant in the proposed topics.

Research on social and economic transformations funded by topics in the present Work Programme will build upon its predecessors in Horizon 2020 and Horizon Europe and further push the boundaries of state-of-the-art knowledge. It will do so by further engaging with a vast array of stakeholders, not limited to universities and research centres, but also extending to social partners (trade unions and business organizations), civil society organizations, practitioners, VET providers, and SMEs.

The destination will rely on a carefully balanced mix of actions, to bring together a balanced and appropriate set of stakeholders to achieve research of the highest quality, while aiming at providing recommendations to policymakers at European, national, regional and local level that could have a beneficial societal and economic impact. In order to facilitate the latter, it will maximise the feedback to policy and the dissemination and exploitation of research and innovation results and practices in the domain of social and economic transformations.

[1] https://op.europa.eu/en/publication-detail/-/publication/6abcc8e7-e685-11ee-8b2b-01aa75ed71a1/language-en

[2] https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex%3A52021DC0101

[3] https://www.ohchr.org/en/instruments-mechanisms/instruments/convention-rights-persons-disabilities

[4] see topic HORIZON-CL2-2026-02-TRANSFO-01 in this Work Programme

[5] https://ri-portfolio.esfri.eu/ for example CESSDA - Consortium of European Social Science Data Archives

Expected Outcome:

Projects should contribute to all of the following expected outcomes:

• Policy makers get a mapping of in-kind benefits across Member States and a comprehensive measurement framework.
• Policy makers gain insights on the availability of in-kind services, on potential gaps in their provision, and on reasons for non-take up.
• Policy makers gain insights into the redistributive role of in-kind benefits and on the segregation of different social groups, through SSH research.
• Policy makers receive operational advice to make informed policy choices which reduce inequality and strengthen fairness and cohesion.

Scope:

In-kind benefits refer to non-cash goods and services provided to individuals or households, typically by the government (national, regional and/or local), to support their well-being or fulfil basic needs. Unlike cash transfers, which can be spent at the recipient's discretion, in-kind benefits ensure that resources are used for specific purposes for free or at a subsidised cost (e.g. food banks, social housing, health and long-term care services, childcare, schooling, sport infrastructure, public transport). Despite the wide range of in-kind benefits, there is poor empirical knowledge basis of the impact of in-kind benefits (except for healthcare) on the income distribution and on vulnerable groups, unlike the impact of cash benefits.

Research activities may focus, as a baseline, on establishing a full mapping of in-kind benefits (both for free and at a subsidised cost, universal and means-tested) provided by national, regional and local governments. This mapping, potentially structured along the life-cycle perspective and/or around specific groups, might help to develop EU indicators on in-kind benefits and improve comparability.

Proposals may develop a comprehensive measurement framework based on methods, tools, available data and indicators, both qualitative and quantitative and both ex ante and ex post. The framework may translate in-kind benefits into income and show their redistributive role (on income groups, vulnerable populations, marginal and/or small size groups) and ensure cross-country comparability.

Proposals may consider identifying the availability of in-kind benefits at local level, potential gaps, take-up rates for in-kind benefits and their reasons (e.g. capacities' incompatibility with the local needs). They may involve vulnerable communities in the evaluation design.

Proposals may provide operational advice to policy makers on how to translate the research results into concrete actions to reduce inequality and strengthen fairness and cohesion.

The overall aim is to close the knowledge gap covering various dimensions. Therefore, it is expected that proposals apply a gender-sensitive and intersectional approach, including age, to their research.