Portugal government projects €3.2 million annual savings from unified social benefit system

The Portuguese government estimates that creating a single "Prestação Social Única" (PSU) will save about €3.2 million per year by consolidating 13 separate IT systems into one integrated platform. The estimate was presented by State Secretary for Social Security Susana Lima during a parliamentary hearing of the Committee on Labour, Social Security and Inclusion. The reform aims to aggregate 13 non‑contributory benefits, simplify administration and promote greater autonomy for recipients. Labour, Solidarity and Social Security Minister Maria do Rosa Palma Ramalho described the PSU as a paradigm shift intended to ensure minimum incomes while encouraging beneficiaries to reduce reliance on state aid. She emphasized a “philosophy of responsibility,” requiring recipients to meet commitments such as school attendance, treatment programs or employment measures. The minister also rejected proposals to lower the current 80% disability threshold that exempts beneficiaries from certain obligations. The adopted model combines elements of several OECD‑commissioned scenarios, projecting an additional cost of €30‑40 million compared with the existing 13‑programme budget, while still delivering the €3.2 million annual saving.