Forced limitations on cash use for welfare benefit recipients
The government plans to gradually pay all welfare benefits by prepaid card and oblige recipients to spend at least half the amount through electronic transactions.
Limiting the use of cash is a prime goal in officials’ efforts to cut down on tax evasion, as cash transactions often mean no receipts. There is already a €500 limit on purchases made by cash, but limiting that further might be prevented by European authorities.
Making welfare benefits recipients spend their allowances by credit cards is, however, approved and the EU’s Recovery and Resilience Fund is providing €10 million to finance its implementation. Kathimerini understands that €8.5 million will be used on tax incentives.
Out of €4 billion spent annually on welfare benefits, only the minimum guaranteed income is disbursed via prepaid card.
