Cyprus's Deputy Ministry of Social Welfare has proposed a reform to the child benefit scheme that would widen income eligibility criteria by roughly 40 percent and extend support to an estimated 17,000 additional families. The bill, which is still subject to approval by the House of Representatives, would also introduce annual increases to benefit amounts and end the abrupt loss of payments when a family's income exceeds the threshold. Officials say the changes are designed to correct what they describe as a long-standing unfairness in the current system.
Wider income thresholds
The most significant change under the reform is the widening of income criteria by approximately 40%, according to Fanos Kourouxefis, senior officer at the Benefits Management Service of the Deputy Ministry, speaking on Politis Radio 107.6 and 97.6's programme Deftheri Matia ("Second Look"). The revised thresholds per family are:
- One child: from €49,000 to €69,000
- Two children: from €59,000 to €74,000
- Three children: from €64,000 to €90,000
- Four children: from €69,000 to €100,000
Politis understands that 50,000 families currently receive the child benefit, with the reform expected to bring in a further 17,000 families. The Deputy Ministry says it is fully prepared to implement the measure.
Higher benefit payments
The reform also provides for an annual increase in the benefit amount itself, ranging from 5% to 10% for lower and middle-income families respectively. According to an example cited by Mr Kourouxefis, a family with four children on a low income could see an annual increase of close to €800, while a family with one child would receive an additional €60. For comparison, a family with one child and an income below the taxable threshold (€22,000) is currently entitled to €600 per year.
Correcting a longstanding unfairness
The third pillar of the reform is intended to "correct unfairness" in the current system, under which a beneficiary who exceeded the income threshold by even a small amount could previously lose the entire benefit. Under the proposed change, the benefit would instead be reduced gradually, based on a specific coefficient, rather than withdrawn outright. Families would also retain eligibility for linked benefits, such as the kindergarten benefit.
Support for large families
Families with five or more children already receive the child and kindergarten benefits without income criteria, a policy in place since last year regardless of household income. "It is the State's choice," Mr Kourouxefis said, noting that such families are relatively few in number and that the measure is intended to signal recognition of their contribution to society.
Next steps in Parliament
The proposed changes are scheduled to take effect from 2027, but must first be debated and approved by the House of Representatives.
