More Than Half of Benefit-Losing Unemployed Seek Living Allowance in Belgium

More than half of the long-term unemployed Belgians who lost their unemployment benefits this year have applied for a living allowance (leefloon), according to new official data that far exceeds the federal government’s initial projections. Of the 99,166 people who saw their benefits cut between January and June, 52,593 — or 53 percent — filed applications with their local Public Centre for Social Welfare (OCMW), as VRT NWS reported.

The figures, drawn from official statistics published by the Federal Public Planning Service for Social Integration, show that more than 43,600 people ultimately received the living allowance — 83 percent of those who applied and 44 percent of all long-term unemployed who lost their benefits. The federal government had initially estimated that only about one in three would seek the municipal-level assistance.

A Landmark Reform Under Scrutiny

The data marks the first comprehensive assessment of the De Wever government’s flagship employment reform, which limits unemployment benefits to a maximum of two years — a policy that made Belgium one of the last countries in the world to end indefinite unemployment payments. The reform, described as the government’s “crowning achievement,” is being rolled out in phases through July 2027, with approximately 180,000 people expected to lose their benefits over the full trajectory.

The first wave began on January 1, 2026, affecting roughly 20,000 people who had been unemployed for 20 years or more, as well as school leavers on integration benefits for over a year. VRT NWS reported at the time that experts warned the reform represented an “experiment of unprecedented scale.” A second wave in March affected about 35,000 people unemployed for 8 to 20 years, while the largest group — approximately 42,000 people unemployed for 2 to 8 years, mostly aged 25 to 45 — lost their benefits on April 1, as VRT NWS detailed.

Regional Disparities

The new data reveals significant regional variation in how former benefit recipients have responded. In Wallonia, 59 percent of those who lost their benefits applied for a living allowance, compared with 51 percent in Brussels and 42 percent in Flanders. The differences reflect household structures: in Flanders, more unemployed people have partners who work, making them ineligible for the means-tested living allowance.

Why the Numbers Exceed Projections

The 53 percent application rate significantly surpasses both the government’s one-third estimate and the upper range of a KU Leuven study published in April, which projected between 27 and 42 percent would flow through to the living allowance. The early waves disproportionately included single people, who are more likely to qualify for the means-tested benefit.

Professor Stijn Baert of Ghent University, a labour economist, has been critical of the reform’s unintended consequences. “The gate toward unemployment is being better guarded, but the gates toward the living allowance and sickness insurance have remained the same or opened a bit wider,” he told VRT NWS. Baert noted that municipalities that actively help people find work should have received more resources.

Pressure on OCMWs

The surge in applications has placed unprecedented strain on local welfare offices. OCMW Leuven’s head of social services, Annemie Clerckx, told VRT NWS that the centre has had to consider calling retired staff back to work. “We must be honest: many of these people are actually no longer able to work,” she said. The OCMW of Sint-Niklaas said “the limit has been reached,” as reported in a video report.

The federal government has committed compensation of 234 million euros for 2026, with similar amounts planned through 2029, as RTBF reported. However, concerns persist about whether these funds will be sufficient.

Mixed Results on Employment

Early data from the first three months showed that about one in ten long-term unemployed who lost their benefits found work — just over 4,200 people out of 45,591. Employment Minister David Clarinval called the figure “encouraging,” noting that this group was “the furthest removed from the labour market.” He expects the proportion finding work to improve in later waves, projecting that about one-third will find employment by year’s end.

However, RTBF reported that critics question this optimism. Professor Ive Marx of the University of Antwerp described the government’s one-third estimate as “a best case scenario,” adding that “it is not clear where that estimate comes from.” More than 23,000 people moved into the living allowance system and over 4,300 into sickness or disability benefits in the first three months.

Human Stories Behind the Statistics

The reform has had deeply personal consequences. Geert Budts, a 58-year-old musician who lost his benefit, told VRT NWS he fears “looming poverty.” “Now under the new rules I am suddenly a profiteer. You stand with your back against the wall,” he said. Catharina Broes, a 24-year-old game designer, said she has “resigned herself to doing jobs I didn’t study for.” Robert, a 41-year-old former truck driver who lost his job due to epilepsy, said simply: “I just want to work.”

What’s Next

More waves of benefit losses are expected through July 2027, with up to 180,000 people affected in total. The financial impact on municipalities and OCMWs will continue to grow, and questions remain about whether the reform will achieve its goal of raising Belgium’s employment rate from 72.7 percent to 80 percent by 2029.

As Knack reported, experts had warned even before the reform took effect that people transitioning between systems could face months without income. The new data suggests those concerns were well-founded — and that the scale of the transition may be far larger than anticipated.