Do you want to speed up the process of livelihood security? Scale up good initiatives!

In the Netherlands, nearly one million people live below the poverty line, and an increasing number of individuals are struggling financially. Recent research by Deloitte indicates that, out of 5,000 surveyed households, only half were able to pay all their bills without issues. Additionally, nearly one in five households faced difficulties covering essential living expenses last year. This highlights that even in one of the wealthiest countries in the world, a significant portion of the population experiences considerable financial uncertainty.

Therefore, it’s not surprising that 'livelihood security' was a key theme in all election programs. And rightly so, because in a world of economic uncertainty and societal change, we need to protect people from financial vulnerability and social disruption.

Political parties propose various long-term solutions for improving livelihood security, including systemic changes aimed at creating a fair, simple, and equitable system for all. However, such changes are complex and time-consuming, while a growing number of citizens urgently need immediate assistance. To address what the government can do in the short term, John Schattorie, Partner at Central Government; Johan Stuiver, Director of WorldClass at the Deloitte Impact Foundation; and Channa Dijkhuis, Director of Public Sector, discuss potential short-term actions.

Take control and work together

A first step for the government is to focus on projects that have already proven successful. Many experiments and pilots aimed at increasing social security occur at the municipal level. However, when such an experiment or pilot succeeds, there is often a lack of responsibility for further scaling up, note Schattorie, Stuiver, and Dijkhuis.

Stuiver: "That is capital destruction, because it means that a successful initiative remains at the municipal level, as does the knowledge and experience. In that gap, where no one feels ownership or takes responsibility, the government can take the lead more often to facilitate scaling up, in collaboration with the municipality that has substantial knowledge.

Schattorie: "In the Netherlands, we have multiple levels of government, but that shouldn't be a barrier. The government needs to look beyond these layers, identify successful initiatives, and determine what is needed to scale them up."

Innovative labour market concepts

"Take, for example, the innovative labor market concept of the basic job. This initiative is designed for individuals who have been on welfare for a long time and struggle to find regular employment. With the salary from a basic job, they no longer depend on benefits. The work offers social value and improves the quality of life in neighborhoods through tasks such as maintenance, repair work, caregiving, and community supervision."   

Dijkhuis: "Scaling up experiments to a national level is primarily the government’s responsibility. It is up to them to implement this scaling, either independently or in collaboration with experts."  Schattorie: "We observe that participants in the basic job program experience a net benefit, which results in a reduction in various social costs. This approach deserves national scaling with support from the government, municipalities, the business community, and civil society organizations."  

 Stuiver: "The basic job has been successful in a number of municipalities, but has not yet been widely adopted at the national level. Instead, many municipalities often redevelop the concept."  Dijkhuis: "That is the well-known psychological effect of not invented here, in which new ideas are ignored because they were conceived elsewhere. The government must actively counteract this effect."

Involve the business community

Another inspiring example of an initiative that deserves to be scaled up to the national level is the Bouwdepot Foundation. It started as a project by the municipality of Eindhoven, where thirty homeless young people were given 1,050 euros per month for a year.  
 
Dijkhuis: "The majority of the young people were living independently after that year and more than half were debt-free. This shows that if you give people confidence and provide peace of mind, they will make conscious choices."  
Stuiver: "Only when people have financial stability can they take steps to improve their livelihoods, such as opening all their mail, becoming socially active, or exploring educational or work opportunities." 
 
The question now is how to scale up such projects in a smart way. Schattorie, Stuiver and Dijkhuis see an important role for the business community and civil society organisations. After all, they already contribute structurally to initiatives to improve livelihood security, for example in education, financial health, debt counselling and poverty reduction.   
 
Dijkhuis: "In public-private partnerships (PPPs), livelihood security issues can usually be resolved more effectively, quickly, and sustainably. No single entity — whether government, business, or education — can address the current issues alone. We need each other, as new insights and innovations emerge from these PPPs."   

Stuiver: "For example, through the Impact Foundation, we collaborate with our clients on all kinds of projects related to financial health for various target groups, such as SchuldenLab NL and Think Forward Initiative. We also partner with impact entrepreneurs to help unseen talents who are struggling to find their place in society."  

Schattorie: "It is essential for the business community to collaborate and contribute long-term to such programs, working alongside the government to shape and implement solutions. This collaboration should be based on shared interests, focused on results, and built on mutual trust. Our goal is to increasingly create meaningful impact together with our clients." Dijkhuis: "Currently, we often see a 'thousand flowers bloom' approach, where initiatives are scattered. It would be much more effective if these efforts were better coordinated."

Make better use of funds

According to Schattorie, Stuiver, and Dijkhuis, it is essential to adopt a more integrated approach to helping people get back on their feet. They emphasise that the business community feels co-responsible and, if the right framework conditions are established, is prepared to contribute more than it currently does. In other words, there is significant potential for experimental innovation, capacity, and budget. It is the government's responsibility to take the lead in coordinating these efforts, ensuring that funds are utilised more effectively.  
 
Schattorie: "The number of allowances, budgets and funds for increasing livelihood security and reducing poverty is enormous. However, many of these budgets remain unused, for example for fear of the possible effects on other allowances and discounts."  
 
Dijkhuis: "The lack of awareness and the complexity of available financial support is a major issue. Additionally, in several large cities, there is a fragmented array of hundreds of social initiatives that focus on specific themes by district and target group." 
Stuiver: "Communication about these schemes often takes place through channels that are difficult for (vulnerable) citizens to find. One solution would be to proactively and automatically allocate amounts from funds to those who need it. The impact of this is immediately noticeable." 
 
Despite the political uncertainties, one thing is clear: action is needed now. Even a caretaker cabinet can take the initiative by stimulating cooperation, providing direction, and rolling out the best initiatives nationwide, according to Schattorie, Stuiver, and Dijkhuis. In the table below, they provide a roadmap for the first practical steps. After all, social security may be a complex political issue, but it is primarily an urgent social need that every administrator can address today.