NORWAY

The setting of national poverty targets

Norway

1. How are indicators chosen at national level to reflect the multi-

dimensional nature of poverty and how do these relate to the
EU indicators?
In particular, what attention is given to the overlap between indicators in identifying
the target population at national level?

Background: Norway’s approach to eradicate poverty is based on the universalistic Nordic

welfare model. The Nordic countries along with some other European countries are recognised
as societies with relatively small income gaps, quite extensive redistribution of income and wealth
through taxation, and with a small proportion of the population living in poverty. A strong national
economy has by large provided a solid protection from the effects of the global financial
recession. The unemployment rate continued to decrease and was down to 1.6 % of the
workforce in autumn 2008, but increased somewhat after the setoff of the economic crises. The
figures from Statistics Norway show an unemployment rate of 3.3 % in March 2011.

Some households and groups are excluded from taking part in the prosperity. A national action
plan against poverty was adopted by the Parliament (Storting) in 2006 and effectuated in 2007.
An updated Action Plan was adopted in 2009 (Action Plan against Poverty, Status 2008 and
intensified efforts 2009). The Action Plan is continuously reviewed in the debate over the national
budget each year. The Action Plan has a strong focus on labour market participation, qualification
and (lack of) basic skills, and on the association between weak or no labour market attachment
and permanently low income. This is also reflected in the poverty indicators.

National poverty indicator:

Income inequalities, measured by the Gini coefficient, or after-tax income per consumption
unit by deciles;

Proportion of households with persistently low income, and with no labour force participation.
Definition of persistently low income: the average income over a three-year period below 50
% or 60 % of median income;

Proportion of children below 18 years living in households with persistently low income, and
with no labour force participation;

Proportion of the population who has not completed secondary education;

Proportion of adult with poor basic skills;

The number of recipients of social assistance;

The number of homeless persons;

The number of notices of eviction and evictions;

Indicators linked to social health inequalities.

16-17 June 2011 Peer Review The setting of national poverty targets, Ireland 1
 NORWAY

There is an extensive overlap between the groups addressed by the poverty indicators, for
example between households with persistently low income and children living in households with
persistently low income, and between low income and living on social assistance (Statistics
Norway).

The national strategy to prevent and combat homelessness 2005-2007, The Pathway to a
Permanent Home, is a central part of the Action Plan against poverty. Although the strategy
period ended in December 2007, the objectives of the strategy are maintained. The government
set three main objectives and five performance targets for the strategy period (see question 2,
poverty targets). There is a clearly established connection between eviction and homelessness,
and between homelessness, income poverty and, for the majority of homeless persons, multiple
problems. Households with persistently low income are less likely to be homeowners than the
average population. Being unable to buy a home in a nation of homeowners (almost 80 %) and
staying a long term tenant in a volatile rental market often with an insecure tenancy, increases the
risk of being trapped in poverty and ultimately a risk of homelessness.

The Norwegian Action plan is consistent with the European headline poverty targets addressing
relative income poverty and exclusion from the labour market. The third headline, material
deprivation, is perceived very much as part of or result of income poverty. Despite the high
degree of redistribution of income, households in a prosperous society will suffer a relative
deprivation although they have a living standard that might be acceptable in another society.

2. How is (are) the national poverty target(s) defined?

How are the main stakeholders (including people experiencing poverty) involved in
this process?

The Norwegian National Action plan takes a broad-based, integrated and long-term approach to
prevent and eradicate poverty. The Action Plan has three main objectives:

Opportunities for all to participate in the labour market;

Opportunities for participation and development for all children and young people;

Improve living conditions for the most disadvantaged groups.

In 2009 the aims were further specified in the following three points:

Ensure that more individuals who are outside the labour market are included in working life;

Improve the financial situation and living conditions of those who depend on social assistance
for a shorter or longer period;

Implement a comprehensive restructuring of the housing support system with a view to

simplifying it and making it more comprehensive.

16-17 June 2011 Peer Review The setting of national poverty targets, Ireland 2
 NORWAY

The strategy against homelessness set five performance targets to be achieved by the end of
2007:

Reduce the number of eviction petitions by 50 per cent and evictions by 30 per cent;

No one should be required to stay at an emergency shelter on release from prison;

No one should be required to stay at an emergency shelter on discharge from an institution;

No one should be offered an emergency shelter place without a quality agreement;

No one should be required to reside for more than three months in temporary
accommodation.

The government takes a work approach to fight poverty. A new Labour and Welfare service
(NAV) was introduced in 2006: The national employment administration and the national
insurance administration merged and entered into partnership with the municipal social service
administration. The aim was to establish a more coordinated and job-oriented services.

Special measures is taken to prevent young people to fall out of school, and training programmes
targeting unemployed young people have been launched. The most disadvantaged groups are
persons with complex problem, for example long term homeless with drug related problems. Two
national programmes addressing homelessness were completed between 2000 and 2007.

Government services, municipalities and voluntary organisations are the main stakeholders. On
governmental level the Action Plan involves seven ministries and their policy areas respectively.
The municipalities are the main stakeholder to carry out the plan and the Labour and Welfare
service is the main instrument on the local level. The work approach is partly based on
partnership with private enterprises for placement of persons in training programmes.

The Housing Bank (front line agency of the Ministry for Local Government and Regional
Development) plays a main part in the fight against homelessness and insecure housing
conditions. The Housing Bank was responsible for implementing the strategy against
homelessness on the national level. The Correctional Services both on national and local level
have entered into cooperation contracts with the Housing Bank in order to prevent homelessness
by release from prison, and has also strengthen the cooperation with the local Labour and
Welfare services for a smoother re-integration after imprisonment. The national and local health
services are responsible for addressing health inequalities in general, and providing treatment
and care for people with mental illness and people with drug related problems. However the main
responsibility for implementing the strategy rested on the local authorities, and the municipalities
were, and still are in the fight against homeless the closest partners to the Housing Bank.

Voluntary organisations are traditionally limited in the welfare provision in Norway. Through the
Action Plan against Poverty and measures to combat homelessness the voluntary sector has
taken a more distinct role, particularly in services for the most vulnerable groups. The voluntary
organisations are in particular visible in the area of combating homelessness and the largest
NGOs work in close cooperation with the Housing Bank.

User involvement is very much the core of the work approach. The aim is very much to assist
people in becoming self supported through qualifying and training for labour participation.

16-17 June 2011 Peer Review The setting of national poverty targets, Ireland 3
 NORWAY

3. Were particular groups identified as the focus of national

targets (e.g. children, working poor, ...) and why were these
chosen?
One of the main measures against poverty is the Qualification Programme introduced as a part of
the Labour and Welfare service reform. The target groups of the programme are very much
concurrent with the target groups of the Action Plan against Poverty:

Long term social assistant recipients;

Young people 20 – 24 years;

Single parents;

Immigrants with poor Norwegian language skills;

People on drug substitution treatment.

Additionally the following groups are targeted:

People in prison;

Homeless persons and those in risk of homelessness;

People with an addiction and/or with a mental health problem.

Children are addressed as one particular target group, and they are included in other target
groups, like single parents and households with limited or no connection to the labour market.
Children are also found in the homeless population and within immigration groups with poor
language skills preventing them from joining the labour force.

The target groups were chosen on the base of research within areas of general welfare, child
welfare, housing and homelessness and figures from Statistics Norway, pointing to specific areas
and groups living in poverty and exclusion. Norway has conducted four national surveys on
homelessness in the period between 1996 and 2008. The surveys register the figure of homeless
persons, a few variables on background information of the homeless persons and (introduced in
the last survey) situations associated with homelessness and likely to cause homelessness. The
survey is cross sectional carried out one specific week, and longitudinal, which facilitates
monitoring the homelessness figures on the national level.

16-17 June 2011 Peer Review The setting of national poverty targets, Ireland 4
 NORWAY

4. What are the main policy measures for reaching the poverty
targets (e.g. is it jobs, welfare payments, better services,
targeted programmes,...)?
Are the poverty targets linked to the other targets in Europe 2020?

The main actions needed to achieve the goals (as defined in the Action Plan):

An economic policy that facilitates high employment, stable economic growth and a
sustainable welfare system;

The further development of the Nordic welfare model;

A broad-based preventive approach;

Targeted measures against poverty.

As pinpointed in the first section Norway has a low unemployment rate and is in fact dependent
on migration to fill the jobs in the labour market. However the government’s work approach is
addressing both structural and individual issues to promote high labour market participation. The
basis for an inclusive work life is an economic policy that facilitates stable economic growth and
high employment. One of the most important measures on the structural level to create an
inclusive working life is the IA Agreement (Inclusive Working Life Agreement) between the
employer organisations and the labour unions. The aim of the IA Agreement is to prevent drop
out of the labour market and to include groups with difficulties entering into the labour market.

The new Labour and Welfare service, mentioned above, is an instrument to establish a more
coordinated and job-oriented services and programmes. The Qualification Programme was
introduced with a new qualification benefit by the end of 2007 and implemented in the
municipalities along with implementation of the Labour and Welfare service reform. The
Qualification Programme comprises a wide range of measures to meet individual needs, like
following up, job training etc. The Qualification Programme further includes specific programmes
and projects aimed at the different groups in priority, for example young people who have
dropped out of school, immigrants with poor language skills, prisoners with little working life
experience, etc. The individual participation is two years. Instead of social support the participant
will receive a monthly fixed salary.

A new housing support scheme was effectuated in July 2009. The aim was to simplify the
scheme and make it more inclusive. The reform is expected to increase the number of recipients
of housing support by 50 % when completed in 2012. To achieve the targets of the national
homeless strategy special funding was made available to the local authorities. The funding is
managed by the Housing Bank and allocated to specific projects supporting one or more of the
five targets. The local projects may for example cover settlement in independent housing,
housing with support, in house services, financial counselling, strengthen cross sectional
services, pilot projects to prevent evictions and further education among service providers.

Several measures are introduced to improve the conditions for children living in poor households
and other vulnerable children and youth. Research has documented that dependency on long
term social support tend to follow the next generation and measures are targeted families “to
break the circle” and increase labour market participation. Other measures against child poverty

16-17 June 2011 Peer Review The setting of national poverty targets, Ireland 5
 NORWAY

and exclusion are directed towards the education system, leisure activities and specific urban
areas.

It should be mentioned that the national spending to reduce poverty has increased substantially
every year since the first Action Plan was introduced in 2007.

5. What are the challenges for the national poverty targets of the
economic recession and the public fiscal crisis?
To curb the effects of the financial crises the Norwegian government increased public spending to
create jobs, especially in the construction and infrastructure sectors (2009 and 2010 budgets). As
shown above the unemployment rate is very low in a European context. There are no cut backs in
the schemes to fight poverty. However Norway was to some degree affected by the recession. .
In the cities the prises in the rental housing sector increased, resulted in greater difficulties for the
less affluent and people with complex problems to obtain a dwelling. This is one explanation for
increase in the number of homeless persons between 2005 and 2008, in a period of
implementation of a national scheme to prevent and combat homelessness (The Pathway to a
Permanent Home 2005-2007).

6. What procedures are in place to monitor and review progress

on the national targets?
The performance in fighting poverty is monitored by public statistics and research. Statistics
Norway continuously produce figures on labour force participation, unemployment rate, decrease
and increase in number of jobs in different sectors, number of social security recipients both on
long and short term, and development in income disparities. Statistics is reported on the number
of participants in the Qualification Programme and measured against the set of objectives. Sub
programmes and projects are evaluated to measure their effects and efficiency. The new housing
support scheme was evaluated in 2010.

National registrations to monitor the number of homeless persons and the composition of the
population are conducted every two to four years. The national strategy, The Pathway to a
Permanent Home, has been evaluated on performance with respect to the five targets and on soft
measures like improved competence among staff working with homeless, political support for the
strategy among local authorities and cross sectional approach to assist the clients.

16-17 June 2011 Peer Review The setting of national poverty targets, Ireland 6
 NORWAY

7. How are the national poverty targets linked to the EU target (to
reduce by 2020 the number at risk of poverty by 20 million), for
example in terms of indicators, target groups, policy
measures?
How can the EU support the achievement of the national poverty targets?

Overall the national Action Plan against Poverty promotes a comprehensive and integrated
strategy to prevent and reduce poverty. The Action plan involves and relies on a wide range of
public stakeholders on governmental and local level and private stakeholders. The Action Plan is
directed towards groups consistent with the priorities in the EU targets; persons and households
outside the labour force, children living in poverty or otherwise marginal situations and the most
vulnerable groups. The focus on qualification for labour participation and on the young
generations in risk of permanently falling out is an important contribution to prevent poverty and
thus a contribution to the overall EU measures.

The Open method of coordination facilitates exchange of experience and methods, and
contributes to set national targets and indicators.

16-17 June 2011 Peer Review The setting of national poverty targets, Ireland 7