Amidst the ongoing economic effects of COVID-19, the unfolding cost of living crisis, and the ever-growing impacts of climate breakdown, the USP2030 Financing Working Group - a diverse range of actors working in the area of social protection financing - emphasized that the need for social protection has never been greater.

In their joint statement, the Working Group emphasizes: "Universal social protection is an essential means to prevent and reduce poverty and inequality and is at core of the social contract that connects the state with the society, contributing to more inclusive, equitable, stable, and peaceful societies. [...] And yet large and entrenched coverage gaps remain, with a lack of available and accessible financing a major bottleneck in achieving universal social protection. In light of this challenge the USP2030 working group on financing has jointly agreed the following key principles to guide the international and national financing of social protection:

  • The financing of social protection should take a rights-based approach and be guided by international social security standards. States have the obligation under international human rights treaties and international social security Conventions to progressively realize the universal right to social security, including to allocate maximum available resources to realize the right of all individuals to social security.
  • The State is the key actor for social protection financing and implementation with six key priorities outlined for domestic resource mobilization. These include:
    • Assign greater priority to social spending within government budgets.
    • Enhance the progressiveness and effectiveness of the tax system to increase tax. revenue and ensure equity in financing efforts.
    • Increase revenues from social insurance contributions by expanding coverage of social insurance schemes to previously uncovered workers.
    • Improve the efficiency and transparency of public financing of social protection across all relevant levels and agencies of government and partners.
    • Ensure adequate provision of shock-responsive financing.
    • Engage in inclusive social dialogue to determine the reforms and financing of the social protection system.
  • International resources should support the expansion of social protection systems in countries with limited fiscal space. Given that closing financing gaps for social protection through domestic resources will not be possible in the short term for many countries, there needs to be increased international support, with a focus in the following areas:
    • Increased and better coordinated international financial support for social protection.
    • Debt relief and restructuring.
    • International tax reform to increase revenues.
    • Coordinated international policy advice.

As co-chairs of the Global Partnership for Universal Social Protection (USP2030) Working Group of Financing, WIEGO worked to gain agreement within the global social protection community to make a joint statement on the Principles for Financing Universal Social Protection, which confirms the importance of progressive taxation and ensuring the affordability of social contributions through subsidies for low-income workers.

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