**Cabinet Approves €12.5 Million Child Benefit Reform to Support Families**
On Thursday, the Cabinet of Cyprus approved a significant reform of the child benefit system, allocating €12.5 million to enhance financial support for lower-income families. The new measures are set to take effect in January and are expected to positively impact approximately 17,000 families and 23,500 children across the country.
Deputy Social Welfare Minister Tina Pavlou highlighted the importance of the reform, which aims to address a previous issue where families could lose their entitlement to benefits following minor increases in household income. "This reform removes a distortion that existed over time," Pavlou stated, emphasizing that the new income thresholds would prevent families from being abruptly deprived of support due to slight earnings increases.
Under the revised structure, child benefit payments will see a 10 percent increase for families earning up to €22,000 annually. For families with incomes up to €44,000, the increase will be set at 5 percent. Additionally, the income threshold for families with three children will rise to €90,000, while families with four children will see their limit increase from €69,000 to €100,000. Notably, families with five or more dependent children will continue to receive benefits without any income criteria, a decision that was made by the government last year.
The reform also expands tuition support for children up to the age of four years and four months. President Nikos Christodoulides indicated that this aspect of the reform would benefit around 2,000 families and 2,800 children. Pavlou further elaborated on the government's approach, stating that financial support would be combined with essential services, including assistance with school costs and feeding programs. "Two thousand families in view of this reform will be able to benefit from a subsidy related to the school," she noted.
President Christodoulides announced these measures ahead of the new school year, emphasizing their significance in strengthening support for families with children. He remarked, "The maximum income limits for families with three and four dependent children are now set at €90,000 and €100,000 respectively," addressing the calls for increased support for middle-class families. The government's overarching aim is to enhance disposable income by redistributing the benefits of economic growth through targeted policies in education, health, and welfare.
Following the Cabinet's approval, the reform will now be submitted to the House of Representatives for further consideration and approval before implementation. The government anticipates that these changes will create a more equitable and supportive environment for families, particularly those facing financial difficulties.
As the reform moves forward, it reflects the government's commitment to addressing the needs of families and ensuring that economic growth translates into tangible benefits for society. The upcoming changes are expected to provide much-needed relief to many families, reinforcing the government's focus on welfare and social support as part of its broader policy agenda.