Having had little time to absorb the economic and social shock of the COVID-19 pandemic, the European Union is confronted with staggering increases in the cost of living. While household burdens vary significantly across and within countries, most European countries are struggling to cushion the blow of rising prices on low-income households and assist those that are at risk of poverty. But are current social policies up to this task? What can we learn from European countries that supposedly get it right? Can governments avoid shifting to a welfare state that is focused on here-and-now redistribution rather than social investment? This Forum examines current examples and offers concrete lessons to shape future policy decisions.