President sets out family support package to tackle demographic decline

President Nikos Christodoulides set out the government’s measures to support young people and families in a video message on Sunday, saying they are aimed at reversing Cyprus’s demographic decline. He said that measures had been pursued since he took office to help young people buy a home, start a family and balance work and family life. “We are changing our Cyprus with policies that respond to the needs of society and substantially improve the daily life of every citizen,” he said. Christodoulides said the government was implementing housing projects worth €300 million. The childbirth allowance has risen to €1,000 for a first child, €1,500 for a second and €2,000 for each further child. Child benefit has increased by 5 per cent, and by up to 10 per cent for lower-income families. Income criteria for child benefit and student grants were removed for families with five or more children, and the criteria for state student support were widened. Maternity leave has been extended from 18 to 22 weeks, and parental leave can now be used until a child turns 15. The state subsidises tuition and meals for children up to four and covers up to 100 per cent of eligible fees for older children. Free compulsory education from the age of four has been established, along with new childcare facilities, more all-day schools and a pilot “Breakfast for All” programme. The president said the tax reform aims to cut the tax burden and raise disposable income, and that pension reform would follow to increase pensions and secure the social insurance fund. Christodoulides had earlier described the demographic situation as “very serious”, with a fertility rate at 1.3 and at least 2.1 needed to replace the population. Statistical service data show a rate of 1.4 children per woman in 2024, unchanged from 2023 and below replacement level since 1995. Births fell from 10,241 in 2023 to 9,766 in 2024 and 9,230 last year, while natural population growth was 2,426 last year, with deaths above 6,000 annually. The population rose 1.7 per cent to about 983,000, mainly through an influx of migration. The share of residents aged 65 and over rose from 11.3 per cent in 2000 to 18.3 per cent last year, while children under 15 fell from 22.3 per cent to 15.2 per cent. The national organisation of large families (POP) criticised “piecemeal policy measures” and a lack of strategic planning. It said Cypriot large-family beneficiaries of child benefit fell from 10,065 in 2012 to 3,166 last year. Deputy Social Welfare Minister Tina Pavlou said a bill would bring about 17,000 more families into eligibility for child benefit from next year.