The additional child benefit increased costs by 100 million euros in 2022

The additional child benefit increased costs by 100 million euros in 2022

A total of 1.46 billion euros in child allowance was paid in 2022, which is almost 100 million euros more than the previous year (1.36 billion euros) due to the additional child allowance paid in December 2022. Otherwise, there have been no significant changes in the amount of child allowance paid in recent years.

“At the moment, the total amount of child benefit does not reflect the decline in the birth rate in Finland, and the euro amount has remained quite stable over the past decade. In the long term, the decline in the birth rate will undoubtedly begin to affect the amount of child benefit paid,” says the specialist researcher Anneli Miettinen From Kela.

The figure shows how the amount of child benefit decreased as a result of the 2015 law change and remained fairly stable after that until it increased due to the additional child benefit to be paid in 2022.

The increase in euro amounts in child benefit statistics is explained by the increase in the birth rate at the beginning of the 2000s and the increases in child benefit in 2012 and 2020. In contrast, child benefit was cut in 2015, when the government reduced it. child benefits eight percent. Child benefits are not linked to the index, and there have been no significant increases in child benefits apart from the additional child benefit paid last year, so the curve is otherwise quite stable.

Child allowance is paid for all children under the age of 17, and its amount increases according to the number of children. Child allowance for one child is about 95 euros, for another more than 100 euros, and the amount increases up to the fifth child. For the fifth child or older, the child allowance is more than €180/child. A single parent also receives a single parent allowance, which is around 63 euros per child. The amount of single parent allowance was temporarily increased to 68 euros for 2023. Child allowances are tax-free income and are not affected by income or other assets.

High birth rate boosts North Ostrobothnia, Nurmijärvi effect boosts Central Uutta County By province, the most child benefits are paid in Helsinki (1.57 billion euros), Western Uustland (1.41 billion euros, including Espoo) and Pirkanmaa (1.36 billion euros, including Tampere). However, the euro amount per inhabitant is higher in areas with a higher birth rate and more underage children, such as North Ostrobothnia, Central Ostrobothnia and Central Uusimaa.

“Differences in child benefit amounts reflect differences in birth rates and the number of large families. The region therefore reflects regions with a higher birth rate, such as Central Ostrobothnia and North Ostrobothnia…


Source: The Nordic Page

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