Soon, fewer documents will be required for social assistance applications in Riga. However, it is evident that the control over the finances of the poor and needy will become more serious.
People Will Not Have to Submit Statements
In June, the Saeima conceptually supported the prepared amendments to the Law on Credit Institutions in the first reading.
The innovations aim to simplify the process for low-income and financially disadvantaged Latvians in submitting documents to receive social services or social assistance.
After the implementation of the innovation, social services of municipalities will have the authority – based on the application of the benefit applicants and requests, to obtain information from credit institutions (banks) or postal payment systems about the applicant's account statements – regarding payments processed through credit institutions, securities, investments, savings, and account balances over a specified period.
The Ministry of Finance notes that this will eliminate the existing practice where the applicants themselves must obtain and submit statements from their accounts.
After all, some residents do not have access to online banking or the digital skills to obtain these documents electronically. Therefore, they often have to request them in person at credit institutions or at the post office – and for a fee. Banks will not miss out on this opportunity.
And this creates an additional burden specifically for those residents who need support the most.
"Our goal is to facilitate access to social assistance and simplify the process for residents. Thus, we are moving towards a more modern and efficient social assistance system," the Saeima noted.
And About Control
Thus, social services of municipalities will soon be able to obtain the necessary data directly from banks and other payment service providers. And, as is evident, it will be better to monitor the incomes/expenses of benefit applicants.
"This should make the provision of support more efficient," the Ministry of Finance summarizes the innovation.
It is expected that the new procedure will come into effect as early as 2027.
