– In order to support the development of social economy even more, we have prepared a draft act containing a number of solutions that are beneficial to both persons at risk of exclusion and social economy actors themselves – points out Marlena Maląg, Minister of Family and Social Policy

Today, in Poland there are about 90 thousand social economy actors employing nearly 210 thousand employees. This is about 1.8% of employment in the Polish economy.

– The focus on the social impact and personal attitudes toward employees is at the heart of the interest of social economy actors. This is a huge value. In order to support the development of social economy even more, we have prepared a draft act containing a number of solutions that are beneficial to both persons at risk of exclusion and social economy actors themselves. This is also a lot of system benefits – stresses Marlena Maląg, Minister of Family and Social Policy.

The draft act on social economy is the crowning of many months of dialogue with partners, the key forum of which was the National Committee for Social economy Development, which ensures the participation of a wide range of stakeholders. The draft is a significant achievement for the entire sector of social economy.

What solutions have been included in the draft?

It is an exceptional opportunity to develop and strengthen social economy in Poland. It introduces into the legislation a number of definitions, inter alia, defines a group of entities of social economy (PES), defines the catalogue of persons considered to be at risk of social exclusion, introduces the status of social enterprise (PS). 

The proposed rules govern in detail two key issues which are the essence of social economy, namely the employment and reintegration of persons at risk of social exclusion, as well as the integration of PES into providing social services by laying down the rules for cooperation with public administration in this regard. Important for this area is to introduce two new modes of cooperation (negotiation and public-social partnership) allowing dialogue and more flexible determination of the conditions for outsourcing social services. These mechanisms should contribute not only to a better understanding of mutual expectations, but also to ensuring the provision of social services in line with the expectations of recipients.

In addition to definition issues and procedures (regarding e.g. the conditions for acquiring the PS status), the act also provides for specific financial support instruments provided to social enterprises in connection with the employment of persons at risk of social exclusion, financed by the Labour Fund and the State Fund for Rehabilitation of Disabled People, as well as tax exemptions. In addition, entities buying goods and services from PS will be able to benefit from a reduction in the contributions to PFRON.

Programmes to support the development of social economy

In addition, social economy actors, including social enterprises, will be able to obtain funds under the ministry or government programmes for the development of social economy.

– Thanks to this, it will be possible to complete support for the social economy sector in a flexible manner. The act provides for the possibility of financing programmes for the development of social economy from the resources at the disposal of the Minister responsible for social security, as well as from the Labour Fund pursuant to an agreement concluded between the Minister responsible for labour and the Minister responsible for social security – indicates Minister Marlena Maląg.

Major benefits in individual, sectoral and system terms

The individual benefits refer primarily to persons, especially those at risk of social exclusion, whose situation is likely to significantly improve thanks to new solutions, because:

• the act creates a new opportunity for persons at risk of social exclusion to start work and reintegrate in social enterprises,
• for persons making use of support from reintegration units (e.g. social integration centres or occupational therapy workshops), employment in PS will be a natural continuation of the reintegration process, will allow to improve the economic situation and provide greater independence,
• persons employed in social enterprises are not only recipients of support, but also those who are co-responsible for the activities carried out by PS.

Benefits for social economy actors:

• social economy actors who become social enterprises will be able to expect support from public funds. This will enable their more dynamic development,
• PES, including PS, will be able to benefit from support services organised at the regional level,
• introduction of the PS term in the Polish legislation means increasing the recognisability of actors operating in this formula. Furthermore – because of the solutions adopted – such an actor will also be identified as a reliable partner with clear social objectives, which should positively affect relations with local government and business,
• PES will be a partner in programming a local social policy and their role in the provision of social services and in cooperation with local government will increase.

System benefits:

• statutory solutions will allow to achieve two objectives in parallel: ensure accessibility to social services by outsourcing them to social economy actors and create jobs for persons at risk of social exclusion,
• local government units will be able to make use of two new flexible forms of outsourcing social services (negotiation mode and public-social partnership),
• cooperation of local government with PES with regard to social services will facilitate the processes of de-institutionalisation of social services,
• the act introduces new instruments for coordinating and supporting social economy policies ensuring participation (committees), quality of service (accreditation), possibility of flexible addressing of support (ministerial programmes),
• from the perspective of the social policy and labour market policy, the employment of people at risk of social exclusion in PS is not only reintegration and improvement in the economic situation of these persons but also better management of their potential, creativity and talent.

– It is also worth noting that the act on social economy will be implemented in parallel with actions co-financed by European funds under the financial perspective for the years 2021-2027, as well as initiatives included in the National Recovery Plan. This means that new legal solutions, together with adequate financial support, will provide a significant impulse for the development of social economy in Poland – concludes Minister Marlena Maląg.