What you need to know
Families who are entitled to the A21 child allowance They will receive the same amounts by the end of March as the previous year, provided that their incomes have not changed significantly. The expected increase in the allowance is delayed, as its implementation will be accompanied by new restrictions that are estimated to leave thousands of beneficiaries.
The government is considering ways for the changes to not deprive those who need it the most.
Increases in housing and minimal guaranteed income benefits are expected by the end of the first half of 2025, but it has not yet been clarified whether they will be given retroactively from January 1 or the month of publication of the decision in the Government Gazette.
What increases are foreseen and for whom
Although income and asset criteria will become stricter, those who maintain the allowance will see significant increases in amounts:
- Minimum Guaranteed Income: from 216 euros is increased to 250 euros, while the increase for each child rises from 50 to 75 euros. At the same time, income limits are adapted to cover more households.
- Housing allowance: The basic amount is increased from 70 euros to 125 euros for lower incomes, while for the highest scale it will be 75 euros. A mobile property criterion is also introduced.
A21 Child Allowance:
- In the 1st income category the amount is increased from 70 to 75 euros per child (150 euros for the third child or more).
- In the 3rd category the amount is increased from 28 to 45 euros per child (90 euros for the third and subsequent children).
New assets and income criteria – who lose the benefits
Changes in granting benefits are accompanied by strict “cutters” aimed at excluding those that go beyond the specified financial limits. Specifically:
- The total value of real estate for a family with two children should not exceed 220,000 euros.
- For vehicles, the limit is set at IX above 1,600 cubic feet, taking into account the age and number of children.
- The total benefits received by a beneficiary from various sources should not exceed the amount of the minimum wage. Otherwise, the amounts will be reduced proportionally or interrupted.
The implementation of these measures is expected to significantly reduce the number of beneficiaries, with the aim of heading for aid to those in greater need.
The “National Register of Beneficiaries of Social Benefits” changes the landscape
One of the most important changes is the creation of the “National Register of Beneficiaries of Social Benefits” by the Ministry of National Economy and Finance. This register will record all beneficiaries of allowances, with the aim of transparency and control of the aid paid.
This single database will allow the state to monitor which allowance and at what height, preventing multiple benefits exceeding the minimum wage threshold.
