If the government suspends the annual adjustment of family allowance, child tax credit, and school start allowance to inflation even until 2029, they would lose 512 euros.
Budget - Family with Two Children Could Lose Over 500 Euros
7-05-2025, 08:04
If the government suspends the valorization of social benefits for families during budget consolidation, it would cost a family with two children 165 euros in 2025 and 291 euros in 2026, according to calculations by the union-affiliated Momentum Institute.
1,408 Euros Less for a Family with Five Children?
A family with five children would have 454 euros less next year, and 799 euros less in 2027. By the end of the legislative period in 2029, the family would have to forgo 1,408 euros due to the elimination of inflation adjustment.
"For decades, social benefits have been losing purchasing power because they were never adjusted for inflation," emphasized Barbara Schuster, Deputy Chief Economist at the Momentum Institute. Cuts in family benefits mean an enormous burden, especially for lower-income households, and further fuel the "already strong risk of poverty in the country."
Comparison Women-Men
The Momentum Institute also pointed out that the lack of inflation adjustment for family allowance would affect women significantly more at 54 percent than men (46 percent). Additionally, savings in childcare allowance would affect women by 94 percent. A lack of inflation adjustment for the child tax credit would also increasingly affect women.
(APA/Red)
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