Portuguese Parliament sends unified welfare benefit bill to committee after PSD-Chega deal

A tense plenary gives way to backroom bargaining

Portugal's proposal to create a single non-contributory social benefit—the Prestação Social Única (PSU)—will now be debated in the Labour, Social Security and Inclusion Committee for ten working days without a first-reading vote in the full chamber. The manoeuvre became possible after the right-of-centre PSD government and André Ventura's Chega party struck a last-minute deal. The PSD accepted six of Chega's seven demands, with only the rules governing immigrant access to the benefit left open for further negotiation. The agreement was announced on Thursday evening by Ventura, who made clear that Chega's support for the final bill rests on resolving the immigration question.

What the PSU would replace

The draft law, defended in the Assembly by Minister of Labour, Solidarity and Social Security Maria do Rosário Palma Ramalho, would absorb 13 existing non-contributory payments into a single envelope. These include the Rendimento Social de Inserção (RSI), the social unemployment subsidy, old-age social pensions, widow's and orphan's pensions, and several social parental benefits. The government argues that the new framework will be "simpler and more transparent" while reinforcing work incentives. Palma Ramalho told deputies that the average RSI claimant stays on the benefit for five years and three months, and that the state detected €159 million in improper payments.

Portugal has the lowest efficiency of social support in reducing poverty among all European Union countries.

The Chega-PSD axis and the immigration flashpoint

Chega has insisted that the PSU must not become a "pull factor for immigration" and demanded that the minimum legal residence before a foreigner can claim the benefit be extended from the current one year to five. In the plenary, PSD parliamentary leader Hugo Soares signalled room to manoeuvre. He argued that the non-contributory regime is already distinct from the contributory one and asked Ventura directly whether Chega would separate the two when negotiating the timeframe. Ventura replied, "Yes, we are available." Soares then told the chamber that the PSD is "available to look at the timeframe that you want to discuss."

Opposition blasts a 'punitive' model

Left-wing parties attacked both the substance of the bill and the political pact that saved it from a floor vote. Bloco de Esquerda's sole MP, Fabian Figueiredo, called the proposal a "punishment" and a "moral bankruptcy."

What makes us strong as a society, what makes us proud as a country, is the courage to be supportive.

Livre's parliamentary leader Isabel Mendes Lopes criticised a mandatory social-work requirement for able-bodied beneficiaries—up to 15 hours a week, drawn from the existing RSI rules—and argued that the government had "halved the access criteria" for RSI and other supports. She also denounced the planned whistleblowing channel for reporting suspected abuse of the benefit, saying it "reeks of other times." The minister pushed back, noting that companies are already obliged to maintain corruption reporting channels.

I find it very strange that companies must have a reporting channel, that a reporting channel is required in corruption matters—all of them created by left-wing governments—and now, suddenly, we cannot have a reporting channel for benefits that are paid with the money of all Portuguese.

Next steps and the shadow of Brussels

The bill now moves to the specialty committee, where the PSD has pledged to discuss the working obligation for people with a degree of incapacity below 80 percent, another Chega red line. The government has tied the reform to commitments made under Portugal's Recovery and Resilience Plan (PRR). Palma Ramalho warned that failure to pass the measure could jeopardise future EU disbursements. In the plenary, the committee referral was approved with votes against from the Communists (PCP), Bloco de Esquerda, and Socialist deputy Pedro Nuno Santos, abstention from Livre, and support from all other benches.