Thousands of families are expected to benefit from a major reform of the child benefit scheme being promoted by the Deputy Ministry of Social Welfare.
The proposed legislation introduces significant changes in three key areas: expanding eligibility, increasing benefit payments and introducing a gradual reduction mechanism for families whose income exceeds the qualifying threshold.
The changes are expected to take effect from 2027, subject to approval by the House of Representatives.
Broader income criteria
According to Fanos Kouroufexis, a senior official with the Welfare Benefits Management Service, the most significant element of the reform is the expansion of income thresholds by up to 40%, depending on the number of children in a family.
Under the proposal:
- One child: from €49,000 to €69,000
- Two children: from €59,000 to €74,000
- Three children: from €64,000 to €90,000
- Four children: from €69,000 to €100,000
According to information obtained by Politis, around 50,000 families currently receive child benefit, while the reform is expected to extend eligibility to an additional 17,000 families.
Higher benefit payments
The reform also provides for annual increases in child benefit payments ranging from 5% to 10%, depending on household income.
According to examples cited by Kouroufexis, a low-income family with four children could receive an annual increase of close to €800, while a family with one child could receive an additional €60 per year.
By way of comparison, a family with one child and taxable income below €22,000 currently receives €600 annually in child benefit.
Addressing a long-standing inequity
The third pillar of the reform aims to address what officials describe as a long-standing unfairness in the system.
At present, families can lose their entire entitlement if they exceed the income threshold, even by a small amount.
Under the proposed changes, benefits would instead be reduced gradually through a predetermined formula rather than being withdrawn entirely.
Families would also remain eligible for related benefits, including the kindergarten subsidy, even if their income rises above the qualifying threshold.
Support for large families
Families with five or more children already receive child and kindergarten benefits without income criteria, regardless of earnings.
Kouroufexis said the policy reflects a deliberate state decision to recognise the contribution of large families to society.
"It is a choice of the state," he said, noting that the number of such families remains relatively small.
The reform is expected to be presented to parliament in the coming months as part of a broader effort to strengthen support for families and address demographic challenges.
