The Parliament talks about increasing child benefits

A government measure suggesting an increase in child benefits is presently being reviewed by the House of Representatives. The Parliamentary Committee on Labour is reviewing the measure this morning that was introduced last Thursday.

The committee is debating the measure under an urgent procedure in order to get things forward more quickly. The intention is for the law to pass the entire House prior to July 11, 2024, when Parliament adjourns for the summer.

Proposed changes to child benefit provision

The bill seeks to modify the 2002–2017 Child Benefit Provision Acts. If approved, child payments would rise by 5% for all beneficiaries.

The measure also establishes a 50% child benefit for students from big families up to the age of 23 and a maximum child benefit of 24 years old for male students who have served in military service. The purpose of this new feature is to assist students from large families.

Addressing inflation and supporting incomes

The bill's explanatory memorandum states that the proposed modifications are a part of a larger set of policies. The initiatives aim to strengthen housing policies, support incomes, reduce inflationary pressures, and quicken the shift to a greener economy. The law is scheduled to go into force on January 1, 2024, retroactively.

Financial implications

The financial impact report of the bill estimates an annual cost of €7 million to the state treasury. Specifically, including students from large families in the child benefit scheme is expected to cost €3.3 million annually. The universal 5% increase in child benefits is projected to cost €3.7 million per year.

Here is a summary of the new child benefit amounts based on family income and number of children:

Families with annual incomes up to €19,500:

• One child: €588 (up from €560)
• Two children: €705 (up from €671.69)
• Three children: €1,293 (up from €1,231)
• Four children: €2,073 (up from €1,974)

Families with annual incomes between €19,501 and €39,000:

• One child: €526 (up from €500)
• Two children: €643 (up from €613)
• Three children: €1,231 (up from €1,172)
• Four children: €1,887 (up from €1,797)

Families with annual incomes between €39,000 and €49,000:

• One child: €470 (up from €448)
• Two children: €470 (up from €448)
• Three children: €940 (up from €895)
• Four children: €1,559 (up from €1,485)

Families with annual incomes between €49,000 and €59,000:

• One child: €0 (unchanged)
• Two children: €427 (up from €406)
• Three children: €854 (up from €813)
• Four children: €1,404 (up from €1,337)

Under current legislation, families with three or more children continue to receive the annual allowance per dependent child if their gross family income does not exceed €59,000, plus an additional €5,000 for each child beyond the second.

Single-parent family allowance

• Incomes up to €39,000: Monthly allowance per dependent child remains at €212.
• Incomes between €39,000 and €49,000: Monthly allowance per dependent child increases slightly from €188.54 to €189.