The European Committee of Social Rights (ECSR) has published a review focused on the impact of the cost-of-living crisis on social rights across Europe. The review provides a detailed overview of the challenges faced by states in safeguarding the rights enshrined in the European Social Charter. It sets out recommendations to governments on how to ensure that those rights are guaranteed in situations where the cost of essentials rises much faster than average household incomes.
In early 2022 Russia's war of aggression against Ukraine severely disrupted global markets, sending food and energy prices soaring due to speculation. This contributed to inflationary pressures at a time when the cost-of-living was already rising rapidly for households. The resultant cost-of-living crisis has significantly affected the lives of Europeans. Groups that were already disadvantaged in European society - including low-income households, children, older persons, and persons with disabilities - have been at particular risk and have faced a heightened poverty, social exclusion, and deteriorating living standards.
Recognising the urgency of the situation, in 2023 the Committee requested all States Parties to submit information on the measures they had taken to mitigate the effects of the cost-of-living crisis.
In the review, the Committee provides a general overview of states' responses to the crisis. It sets out guidance and a series of recommendations:
- States Parties must design and implement targeted measures for the groups most affected by the crisis, taking their specific needs into account.
- Social protection is a fundamental element of the Charter. Rising inflation has greatly reduced the value of social security benefits and assistance, leaving recipients unable to afford essentials. States must take all necessary steps to ensure these benefits remain adequate by adjusting them to keep up with inflation and support the most affected groups.
- The real value of the minimum wage has declined in numerous countries due to high inflation. The Committee makes clear that states must ensure fair remuneration in line with Article 4 of the Charter ensuring that workers and their families enjoy a decent standard of living. This includes ensuring that minimum wages are set at no less than 60% of the net national average wage.
- Rising housing costs and an increasing risk of homelessness are critical issues faced by many Europeans. The Committee stresses that the Charter rights require States to ensure that rents are affordable and that adequate housing benefits are adequate in relation to housing costs. Governments should increase initiatives to enhance the supply of social housing and strengthen protections against evictions.
- Sharp increases in energy and food prices have severely affected households, particularly those on low incomes. Governments should closely monitor levels of energy poverty, provide targeted support to those most affected, and implement long-term policies to ensure stable, consistent, and safe access to adequate energy.
- Governments must carry out meaningful consultation with persons belonging to the groups most affected by the crisis and ensure their participation in the design, implementation, and evaluation of measures taken in response to the crisis.
The ECSR focuses on the situation regarding the groups most affected by the cost-of-living crisis: low-income households, children, persons with disabilities and older persons. It invites States Parties to adopt rights-based medium- and long-term measures to address the long-term effects of the cost-of-living crises - not just short-term ones (such as ad hoc or one-off cash allowances or temporary benefit increases). The ECSR makes clear that addressing a cost-of-living crisis in a Charter rights-consistent way is essential if states are to give effect to their international law obligations under European human rights law. Economic hardship should not lead to the erosion of fundamental social rights, and governments must ensure that policies uphold the principles of social justice and solidarity.
"The cost-of-living crisis affects countless people in Council of Europe member states, with its effects felt daily. Many struggle to make ends meet each month. This crisis exacerbates social inequalities and undermines individuals' ability to exercise their rights in essential areas, including social protection, employment and housing. It is time to act to address it," underlined Gianluca Esposito, Director General of Human Rights and Rule of Law of the Council of Europe.
"Upholding Charter rights for the benefit of all supports economic recovery and social justice. Ensuring that everyone in Europe enjoys their rights related to social protection, housing, work, education constitutes direct, meaningful pushback against the growing threats to democracy that have been fed by fears about diminishing living standards and life opportunities," ECSR President Aoife Nolan concluded.
