Contemporary local communities face numerous challenges: from ensuring high-quality healthcare, to supporting the elderly and people with disabilities, to combating social exclusion. In response to these needs, the Ministry of Family and Social Policy has planned the “Social Premium” project, which aims to harness the potential of the social economy sector to deliver social services while generating a range of social benefits. Thanks to support from European Funds and the state budget, local governments will receive approximately PLN 300 million in the coming years to commission social services from social economy entities. The project is being implemented by the Cooperation Fund Foundation. What is the social economy?
The social economy focuses on supporting people at risk of social exclusion, including people with disabilities, the elderly, and the unemployed. Reintegration, such as finding employment, is an important activity in this context, as is rebuilding a sense of agency and the ability to fulfill social roles. Additionally, the social economy focuses on providing social services in response to the identified needs of local communities.
The organization and operation of social economy entities are regulated by the Social Economy Act, which entered into force on October 30, 2022. It specifies the principles for obtaining and losing social enterprise status, the supervision of these enterprises, support measures for them, and mechanisms for supporting the development of the social economy by public administration bodies.
Social Economy Enterprises and Social Enterprises
The social economy primarily refers to social economy entities (PESs). These include, among others, social economy organizations (SEs). NGOs, cooperatives (social, labor, including cooperatives for the disabled and the blind), and entities such as non-profit companies, church entities, associations of local government units, rural women’s associations, and socio-professional reintegration units (e.g., Social Integration Centers and Clubs).
However, a social enterprise is a status, not a separate legal form. It can be obtained by Social Economy Enterprises (PES). The status is granted by the voivode, who verifies through administrative proceedings whether the PES meets the relevant requirements.
What is the social premium?
The launch of the “Social Premium” will increase demand for social services provided by social economy entities.
This is not only an opportunity to increase the availability and quality of social services, but also to build socially responsible territories and lasting cooperation between the social economy sector and the public sector, explains Andżelika Wardęga, Director of the Social Economy Department at the Ministry of Family and Social Policy.
At the same time, strengthening the social economy sector will generate additional social benefits, including: in the local labor market and the social and professional reintegration of local community members in need of this type of support.
All municipalities and counties that decide to commission a social service to a social economy entity will be able to apply for the funds, in any manner.
As local governments, understanding the needs of our residents, we should strive to provide social services in a way that is close to people and responds to their individual needs,” says Hubert Pasiak, Mayor of the Zbuczyn Commune. “From what I see, the ‘Social Premium’ is a guide on how to achieve this – by offering both financial support and practical tools.”
What activities does the project include?
The ‘Social Premium’ addresses challenges related to utilizing and developing the potential of social economy entities to provide high-quality local social services. Furthermore, a key element of the project is preparing local government staff to effectively manage social service procurement through training and consulting, as well as promoting dialogue and collaboration with local social economy entities.
“Together with the Ministry of Family and Social Policy, we strive to ensure that local government units increase the value of social services outsourced to social economy entities specializing in this field,” notes Daniel Prędkopowicz from the Cooperation Fund Foundation, which will implement the project and accept grant applications.
The project plans to award at least 250 grants to municipalities and counties (generally up to 25% of the service value, but not exceeding PLN 350,000) to partially finance social service contracts outsourced to the Social Economy Reform Fund (PES). These will include respite care, assistance services in family care homes, support in centers for people in need, and specialized counseling.
Applications will be submitted by eligible local governments that have planned to increase the value of existing outsourced social services or to commission new ones. It is important to note that only social economy entities can provide these services. The Cooperation Fund Foundation will conduct a rolling application process and will begin in 2024. The value of the pilot project, implemented until the end of 2025, is nearly 100 million PLN. After its completion, support will continue, and the total amount allocated to outsourcing social services from the Social Economy Reform Programme (PES) will reach approximately 300 million PLN.
Benefits for the community and challenges for local government
Thanks to the “Social Premium” project, local communities will gain access to a wide range of social services, improving the quality of life of residents. It is also a way to strengthen the local economy by supporting social economy entities that provide these services. Finally, it addresses the challenge for local governments of effectively integrating these services into their plans and budgets. “Social Premium” offers tools and support to aid in this transformation. These benefits are a step toward building more inclusive and supportive communities that prioritize the development of local social services.
More information
More information about the “Social Premium” will be available soon on the project website, social media, and on the websites of the Ministry of Family and Social Policy and the Cooperation Fund Foundation. The project is co-financed by the European Union under the European Funds for Social Development 2021-2027 programme, co-financed by the European Social Fund Plus.
