Government proposes temporary increases to family benefits
Under the Government’s proposal, several benefits for families with children are to be raised for the duration of 2023. Private day care allowances would be increased permanently. The annual maximum limit on out-of-pocket medicine expenses is proposed to be left at its 2022 level.
The Government has proposed temporary amendments to the Acts of Parliament concerning unemployment benefits, social assistance, financial aid for students and National Health Insurance. The amendments would remain in effect throughout 2023. The goal with the proposed amendments is to strengthen the purchasing power of low-income families with children at a time of rising prices. The proposal is among the steps agreed in the Government’s budget deliberations for 2023 that are aimed at strengthening the population’s purchasing power.
Temporary increases to benefits in 2023
Under the proposal, the child increase to unemployment benefits, the single-parent supplement to the child benefit, the provider supplement to the study grant and the basic amount of social assistance for children under 18 would be raised temporarily for the duration of 2023.
Child benefits can include a single-parent supplement if the recipient is not married, cohabiting or legally separated. The supplement is paid for each child eligible for a child benefit. Under the proposal, the single-parent supplement would be increased by 5 euros from its current amount of 63.30 euros per month to 68.30 euros per month starting 1 January 2023.
A child increase is paid to unemployment benefit recipients who provide for a minor child. Under the proposal, the child increase would be raised by 20%. The child increases to labour market subsidies and basic unemployment allowances will be raised by an additional 4.2% as an index adjustment measure. The new rates of the child increases starting 1 January 2023 would be as follows:
- for one child, up from 5.61 euros to 7.01 euros per day
- for two children, up from 8.23 euros to 10.29 euros per day
- for three or more children, up from 10.61 euros to 13.26 euros per day
Study grants can include a provider supplement if the recipient provides for a child under 18. Under the Government’s proposal, the provider supplement would be increased by 10 euros. Provider supplements will also be index adjusted upwards on 1 August 2023. The rates of the provider supplement would go up from 107.17 euros to 117.17 euros per month starting 1 January 2023, and further to 122.05 per month starting 1 August 2023.
The basic amount of social assistance for children under 18 is currently between 282.47 euros and 373.08 euros per month. It varies both by the age of the child and the number of siblings. Under the proposal, the basic amount would be increased by 10% for the duration of 2023. The basic amount will also be index adjusted upwards on 1 January 2023. The rate of the basic amount of social assistance for children would next year vary between 327.51 euros and 421.88 euros per month.
Care supplement to private daycare allowance to be increased permanently
Private day care allowance is available to parents whose child, who is under school age, is in the care of a paid childminder or private early childhood education provider. The private day care allowance consists of a care allowance and a care supplement. The care supplement is linked to income and its amount is affected by family size and gross income.
Under the Government’s proposal, the full rate of the care supplement to the private day care allowance would be increased by 100 euros starting 1 March 2023. The increase would be permanent.
Private day care allowances will also be index adjusted upwards on 1 January 2023. The maximum care supplement will go up from 155.24 euros to 161.69 euros per month starting 1 January 2023, and further to 265.85 euros per month starting 1 March 2023.
Annual maximum limit on out-of-pocket medicine expenses to remain at 2022 level
The annual maximum limit on out-of-pocket medicine expenses is the maximum amount that beneficiaries must annually pay out of pocket for reimbursable medications. Once they reach the annual maximum, customers only pay a 2.50 euro copayment for each reimbursable medicine for the rest of the year.
In 2022, the annual maximum is set at 592.16 euros. The Government proposes that the annual maximum should not be index adjusted in 2023 but should be kept at its 2022 level.