Government Austerity Measures: Family Benefits Could Be Reduced

Specifically, the annual valorization of family allowance could be suspended, speculated the "Standard" on Monday. However, there was no confirmation from the department of the responsible minister Claudia Plakolm (ÖVP) upon APA's request. Criticism has already been voiced by the Catholic Family Association.

Apparently Savings Planned for Family Benefits

In the recently submitted legislative proposals to the parliament, the end of the valorization of family allowance is not yet included. However, the explanations state: "As a measure within the framework of budget consolidation, the valorization of certain family benefits for the calendar years 2026 and 2027 is to be suspended." It is likely that this refers to the family allowance, but also to the multiple child supplement, childcare allowance, and family time bonus.

According to information from the "Presse", not only the valorization of family benefits is likely to be suspended. Income-independent social benefits, such as the assessment basis for health, rehabilitation, and reintegration benefits, and retraining allowance could also be affected. The annual adjustment of study grants and care allowance is likely to be maintained. There was no confirmation for this either.

"Saving on Children is Not Future-Proof Policy"

The rumored measure caused anger among the Greens, whose former initiative led to the automatic valorization of family and social benefits. "The fact that this social policy progress is now to be reversed under SPÖ government participation is fatal and particularly affects families," emphasized family spokesperson Barbara Neßler in a joint statement with budget spokesperson Jakob Schwarz.

Criticism of the measures also came from the Catholic Family Association. "We understand the need to save, but saving on children is never future-proof policy," wrote President Peter Mender in a statement. He particularly criticized the "imbalance" of the savings measures. At the same time, for example, the "commuter euro" is to be tripled. Praise for this measure, however, came from the ÖAMTC.

(APA/Red)

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