The Council of Ministers has approved a reform of the child benefit scheme, paving the way for the proposal to be submitted to Parliament with the aim of taking effect on 1 January 2027.
Announcing the decision, Deputy Minister of Social Welfare Tina Pavlou said the reform includes both higher benefit payments and broader income eligibility criteria.
The package is expected to cost €12.5 million and, if approved by Parliament, would benefit around 17,000 families and 23,500 children.
Higher support for lower-income families
Under the proposal:
- Families with annual income of up to €22,000 would receive a 10% increase in child benefit.
- Families with income of up to €44,000 would receive a 5% increase.
Broader eligibility criteria
The reform also expands income thresholds for larger families.
- For families with three children, the income limit would rise to €90,000.
- For families with four children, the limit would increase from €69,000 to €100,000.
Pavlou said the changes would eliminate a longstanding distortion that saw some families lose eligibility entirely after small increases in income.
Under the new system, broader thresholds are intended to ensure that modest income growth does not result in the immediate loss of assistance.
Additional support measures
The deputy minister stressed that financial support must be accompanied by services.
She said about 2,000 families are expected to benefit from school-related subsidy schemes, while approximately 2,800 children could benefit from education-related meal support programmes.
According to Pavlou, combining financial assistance with services is essential to achieving meaningful results for families.
Next step in Parliament
The reform will now be submitted to the House of Representatives for approval.
If passed, the new child benefit framework will come into force on 1 January 2027.
Source: CNA
