A significant modification to government plans for child benefits and social solidarity is caused by the exceptionally high fiscal cost reaching 400 million euros. According to a report by Apogeumatini, the planned increases that were initially scheduled for late July are being postponed, with the Prime Minister reserving the first word for related announcements during the Thessaloniki International Fair in September.
Read: Child benefit A21: When will the third installment be paid – What changes for beneficiaries
Prerequisites for implementing new benefits
A basic prerequisite for advancing the reforms is the complete integration of all social benefits into the new National Benefits Registry. This system will allow the general government to have a complete picture of beneficiaries and amounts granted per geographic area and Region.
In the recent bill from the Ministry of Social Cohesion on property exchanges, Minister Domna Michailidou introduces a provision that replaces the housing benefit with a rental allowance, expanding the number of vulnerable families who benefit.
Rejected proposals for wealth criteria
The Ministry of Finance had examined introducing income and wealth criteria for granting child benefits, aiming to exclude higher incomes and redistribute resources. However, the proposal was ultimately rejected.
The wealth elements that would be subject to control included real estate, vehicles, bank deposits and investments in stocks and bonds. For a family with two children, the limit for real estate value would be set at 210,000 euros, while for cars at 2,000 cubic centimeters.
Proposed increases in child benefits
The proposal to be submitted to the Prime Minister provides for a 20% increase compared to 2024, with parallel unification of the second and third categories. Monthly benefits will range from 34 to 168 euros:
- Third income category: from 28 to 45 euros for one child
- Two children: from 56 to 90 euros monthly
- Three children: from 112 to 180 euros monthly
Reform objectives and the new registry
Government sources emphasize the need to eliminate distortions in welfare policy, as highlighted by the diaNEOsis Organization study. Central pillars of the reform are transparency, fairness and respect for taxpayers’ money.
The National Benefits Registry, included in the Ministry of Finance bill, will create a unified digital system recording all state benefits, from child and heating allowances to tax breaks, along with corresponding beneficiaries
New benefits for three-child families
Consultations continue for extending provisions to three-child families, aiming to converge with large family benefits. Already, in the “My Home 2” program, three-child families enjoy full interest rate subsidies, while in nursery vouchers they are equalized with large families. In the immediate future, an amendment is expected for hiring three-child and large families in the Public Sector through ASEP, further strengthening benefits for these categories.
