“The changes being made only concern allowances for families with many children. The increase in child allowances for the first and second child of the family, which entered into force on 1 January, will remain in place. We need to look at the big picture when we design policies,” stressed Signe Riisalo, Minister of Social Protection. “What is happening in the world today creates a lot of insecurity for families, which is not alleviated by financial support alone, but by quality services. It is also important to bear in mind that these allowances continue to be higher than last year: by €150 for families with three to six children and by €250 for families with seven or more children.”
From 1 January 2024, the allowance for families with many children will be €450 per month for families with 3–6 children and €650 per month for families with 7 or more children. From 1 January 2024, the amount of the allowance that the state pays to a child if the parent liable for paying maintenance fails to pay it or fails to pay the necessary amount will increase from €100 to €200 per month.
From 1 July 2023, the regulation on smoothly phasing out the payment of the allowance for families with many children, which provided for the payment of the allowance for families with many children until the youngest child in the family reaches the age of 19, will be repealed. As the scheme has only been in place for a few months, few families are affected by this change. For families who are already paid 2/3 of the full amount of the allowance for families with many children since the start of the year, the amendment provides for a 6-month transition period to allow them to adjust to the amendment, that is, they will continue to receive the allowance for families with many children until the end of 2023. Families who would have become eligible for the continued payment of the allowance for families with many children from 1 July 2023 will not continue to receive the allowance.
The reduction in the size of the allowance for families with many children, the abolition of the indexation of the allowance, and the repeal of the smooth phasing out of the payment of the allowance for families with many children will save the state budget €5.1 million this year and €151.8 million by 2027.
“The changes will make it possible to allocate extra money to support vulnerable target groups, such as children with special needs and children without parental care. The aim of the increase in maintenance support is to support the economic livelihoods of families living in the greatest poverty,” explained Minister Riisalo.
According to the Social Insurance Board, child support was paid for 6,160 children in 2022, or nearly 2% of Estonian children. As at 31 March 2023, the allowance for families with many children was paid to 24,846 families, of which 24,717 are families with 3–6 children and 129 families with 7 or more children. In total, 80,739 children are growing up in families with many children, which is 29% of all children receiving child allowance.
