PS and PSD strike deal on unified welfare benefit, but conflicting claims on mandatory work persist

On 24 June 2026, the Portuguese Socialist Party (PS) and the governing Social Democratic Party (PSD) reached an agreement to approve the Single Social Benefit (Prestação Social Única, PSU), a reform that consolidates 13 existing welfare payments into one means-tested benefit. The deal safeguards hundreds of millions of euros in EU recovery funds linked to the milestone, originally set by a previous PS government.

What the agreement includes

Both parties confirmed that the PSU will move forward, with PS parliamentary leader Eurico Brilhante Dias stating that the social work component will be integrated into an individualised insertion plan rather than framed as compulsory. The controversial anonymous denunciation channel, which would have allowed citizens to report suspected benefit fraud, is eliminated. PS secretary-general José Luís Carneiro underscored that the 15-hour weekly activity requirement was removed and that oversight will now rest with the Assembly of the Republic through decree-law, not a ministerial order.

“For us, from the first hour, our priority has been to follow the concerns of the most vulnerable, the most fragile in our society, and therefore we never thought of these policy options in terms of partisan calculation.”

Obligatory or flexible? Conflicting narratives

PSD parliamentary leader Hugo Soares immediately contradicted the PS version, insisting that the "social solidarity activity" remains mandatory for those able to perform it, at three hours per day, 15 hours per week, but now embedded in a personalised insertion plan that considers the individual's household circumstances. Soares called the difference a "rhetorical question" and gave examples such as helping at a parish council, accompanying an elderly person to a medical appointment, or assisting in a care home. The discrepancy leaves unclear whether recipients can be sanctioned for refusing to participate.

“The social solidarity activity does not fall and does not cease to be obligatory.”

Chega denounces deal as surrender on fraud

Chega leader André Ventura condemned the PS–PSD accord, arguing it demonstrates that the government abandoned the fight against benefit fraud and subsidy dependency. Ventura reiterated that his party never accepted a mechanism allowing immigrants who have never contributed to the Portuguese social security system to access the PSU, a position he described as "irrevocable" and a fundamental principle. He accused the two larger parties of forming a self-serving "bloc", declaring on social media that there goes the will to prevent people from abroad living on subsidies.

“What a shame. There goes the will to fight fraud and subsidy dependency. There goes the will to prevent those who have never contributed from coming from outside to live off subsidies.”

Reactions across the political spectrum

Livre spokesperson Rui Tavares welcomed the government's choice to negotiate with the PS rather than Chega, calling it "important and initially good news" and pressing the prime minister to clarify his stance on future negotiations before the State of the Nation debate scheduled for 16 July. The Portuguese Communist Party (PCP), through deputy Alfredo Maia, charged the PSD with "a desperate attempt to find allies" to impose what he termed "another attack on the poorest of the poor". Left Bloc deputy Fabian Figueiredo accused the PSD of lacking a compass and criticised the attempt to negotiate with Chega to worsen the proposal. All left-wing parties signalled they will scrutinise the final text.