How to Increase Take-up Rate of Social Benefits in Hungary – Towards Sustainable Social Development

Abstract

Low take-up of social supports represents a persistent challenge for welfare systems, undermining both their effectiveness and social legitimacy. This study examines the determinants of supports non-take-up in Hungary, with a particular focus on Győr-Moson-Sopron County, one of the country’s most economically advanced regions. Despite favorable labor market conditions, a proportion of the population remains vulnerable and dependent on social assistance, highlighting the importance of well-functioning support systems. The research is based on a survey conducted in 2024 among local municipalities, capturing expert insights from mayors, notaries, and social administrators. The findings indicate that the system of social supports is perceived as moderately effective and relatively transparent; however, notable deficiencies persist in terms of equitability and targeting accuracy. A key structural barrier is the presence of undeclared employment, which distorts eligibility assessments. The study identifies stigma associated with benefit claiming as the primary factor behind low take-up, alongside insufficient information and the perceived inadequacy of benefits. Policy recommendations emphasize the need for reducing stigma through targeted communication, improving access to information, strengthening administrative transparency, and addressing informal employment. Enhancing take-up rates is essential not only for improving system efficiency but also for promoting inclusive and sustainable social development. UDC: 364.4:316.42(439); JEL: I38