Eurofound publishes report on the digitalisation of social benefits.

On 28 October 2025, Eurofound – the European European Foundation for the Improvement of Living and Working Conditions – published a report on the digitalisation of social protection. The report focuses on monetary social benefits, including unemployment, sickness, maternity/paternity, disability, old-age, work accident and occupational disease benefits, as well as minimum income, family and housing benefits. It examines the extent to which the front- and back-office processes of social protection systems in the Member States of the European Union (EU) and Norway have been digitalised, the impact of digitalisation on accessibility and efficiency, and the available policy options.

Improved access and user experience

The report finds that digitalisation of social protection can significantly enhance access to benefits and improve user experience. Digital procedures make it possible to apply independently of office opening hours, reduce waiting times, and avoid stigmatising application processes. They can also lower administrative costs, make processes more transparent and simplify communication with citizens. In nearly half of the Member States and in Norway, online application is possible for all or almost all of the benefits studied. While analogue options continue to exist in many cases, in at least five countries certain benefits can now be claimed exclusively online.

According to the report, the automation of child benefits is particularly advanced, in many cases eliminating the need for an application altogether. Nonetheless, human decision-making generally remains a key element of administrative practice – especially in rejections or atypical cases. At the same time, the report points out that digital processes do not reach all population groups equally. People in atypical employment or without a permanent residence are often not fully captured and risk missing out on benefits to which they are entitled.

Digitalisation at different speeds

While social protection systems are rapidly digitalising overall, the report notes that the speed differs considerably between Member States and administrative systems. Systems centrally managed by national social insurance institutions tend to be more digitalised than those run by employers or insurance funds. Locally administered benefits – such as housing or minimum income schemes – are more difficult to digitalise due to complex eligibility checks and heterogeneous data sources.

Furthermore, the report highlights that links with other policy areas are crucial for digital progress. For example, the digitalisation of healthcare – through electronic medical and maternity certificates, for instance – has been a major driver of the digitalisation of related benefits. EU initiatives promoting interoperability between Member States have also played an important role, especially in the areas of pensions and healthcare.

Challenges and tensions

In addition to the opportunities, the report points to several challenges and tensions. While increased digitalisation can accelerate processes and reduce errors, it also introduces new risks – such as greater vulnerability to cyberattacks and data protection breaches, or the loss of personal support and counselling. Moreover, there is little evidence that resources saved through automation and efficiency gains are actually reinvested in additional support for vulnerable groups.

A central issue, according to the report, is citizens’ trust in digital systems. A lack of transparency regarding data use and algorithmic decision-making may undermine public confidence. It is therefore essential to establish transparent and explainable processes, maintain human oversight mechanisms and ensure accessible complaint and appeal procedures.

Policy recommendations

Finally, the report formulates several recommendations for policymakers and public administrations to maximise the benefits and minimise the risks of digitalising social protection systems. First, trust should be understood as a precondition for successful digitalisation. This can be strengthened through transparency, explainability of algorithms and data use, and by actively involving relevant stakeholders – such as social insurance institutions, social partners, healthcare professionals, benefit claimants and civil society.

The report also recommends that social protection staff receive targeted training and adequate resources to manage the transition to digital processes. Their roles should be adapted to incorporate new digital tasks while continuing to provide reliable support to users.

In addition, digital systems should be thoroughly tested before implementation, regularly evaluated for impact, and accompanied by open communication about the data and algorithms used. Research institutions, the judiciary, media and civil society should be actively involved in monitoring to detect potential biases or data protection issues at an early stage. Finally, the report reminds that even the best-protected systems are not immune to technical failures or cyberattacks – making robust contingency plans indispensable.