The changes would be valid throughout 2023. The changes aim to strengthen the purchasing power of low-income families with children during rising prices. The proposal is one of the steps agreed in the government’s 2023 budget review, which aims to strengthen the purchasing power of the population.
Temporary increases to benefits in 2023
According to the proposal, the child increase of the unemployment benefit, the single-parent supplement of the child allowance, the study grant supplement and the basic amount of the subsistence allowance for children under the age of 18 would be temporarily increased until 2023.
Child allowance may include single parent allowance if the recipient is not married, cohabiting or legally separated. An additional part is paid for each child entitled to child benefit. According to the proposal, starting on January 1, 2023, the single parent allowance would be increased by 5 euros from the current 63.30 euros per month to 68.30 euros per month.
A child benefit is paid to unemployment benefit recipients who care for a minor child. According to the proposal, the child allowance would be increased by 20 percent. Child increases to labor market support and basic daily allowance will be increased by 4.2% as an index check measure. The new child increases from 1 January 2023 would be as follows:
- from 5.61 euros to 7.01 euros per day for one child
- for two children from 8.23 to 10.29 euros per day
- for three or more children from 10.61 euros to 13.26 euros per day
The study grant may include an editor’s allowance if the recipient takes care of a child under the age of 18. According to the Government’s proposal, the caregiver allowance would be increased by 10 euros. Service provider allowances will also be indexed upwards from 1 August 2023. The prices of the service provider supplement increased from 1.1.2023 from 107.17 euros to 117.17 euros per month and from 1.8.2023 further to 122.05 euros per month.
The the basic amount of income support for people under 18 years of age is currently 282.47-373.08 euros per month. It varies both according to the child’s age and the number of siblings. According to the proposal, the basic amount would be increased by 10% by 2023. The base amount will also be indexed upwards from 1 January 2023. Next year, the percentage of the basic amount of the children’s income support would vary between EUR 327.51 and EUR 421.88 per month.
The care allowance for private daycare support will be permanently increased
Private daycare support is available to parents whose child under school age is in the care of a paid nanny or a private early childhood education institution. Support for private day care consists of a care allowance and a care allowance. The care allowance is tied to income, and its size is affected by family size and gross income.
According to the government’s proposal, the care allowance for private daycare support would be increased by 100 euros starting March 1, 2023. The increase would be permanent.
The index increase of private day care support will also be increased from 1 January 2023. The maximum amount of the care allowance will rise from 155.24 euros to 161.69 euros per month from 1 January 2023 and further to 265.85 euros per month from 1 March 2023.
The annual maximum limit for self-financing costs will remain at the level of 2022
The Maximum annual limit for self-financing expenses is the maximum amount that beneficiaries have to pay annually out of pocket for reimbursed drugs. When the annual maximum amount is reached, the customer only pays a co-payment of EUR 2.50 for each reimbursed medicine for the rest of the year.
In 2022, the annual maximum amount is 592.16 euros. The government proposes that the annual maximum amount will not be indexed in 2023, but will be kept at the 2022 level.
More information for customers
Source: The Nordic Page