Large Families Say Child Benefit Changes Are Only a "Small Step"

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Cyprus's large families association has welcomed the government's proposed child benefit reforms but argues they fall short of addressing long-standing inequalities and the country's demographic challenges.

The Pancyprian Organisation of Large Families has described the government's proposed child benefit reforms as a positive step, but says they do not go far enough to address the difficulties faced by larger households.

Speaking on Morning Briefing, the organisation's Public Relations Officer Ioannikios Fakas said any expansion of eligibility criteria or increase in benefits is moving in the right direction. However, he argued that a more substantial reform is needed for large families.

"The more children, the less support"

According to Fakas, the current system contains distortions because increases in the number of children are not matched by proportionate increases in state support.

He said income thresholds have remained effectively unchanged for years and argued that the way dependent children are counted can result in disadvantaged treatment for large families.

The organisation's long-standing position, he added, is that income criteria should eventually be abolished altogether.

Recent government announcements, he said, represent only "a small part" of the distance that still needs to be covered.

Two key issues

Fakas said the issue should be viewed through two separate lenses.

The first concerns the removal of inequalities affecting large families, so that support available to smaller households is applied proportionately to larger ones.

The second concerns Cyprus's demographic challenge and declining birth rate.

He argued that if the state genuinely wants to reverse falling birth rates, it must provide meaningful incentives for families in addition to correcting existing distortions.

Support for families, he noted, extends beyond direct benefits and should also include:

  • Childcare during summer months.
  • Support for working parents.
  • Broader family-friendly policies.

Concerns over the €100,000 threshold

Fakas was particularly critical of the announcement regarding families with incomes of up to €100,000.

He argued that increasing the income threshold does not necessarily translate into meaningful financial support.

Using the example of a family with four children and income close to the upper threshold, he said calculations suggest support could amount to around €358 annually, or approximately €30 per month.

According to the organisation, expanding eligibility has limited value if the actual payments remain very low.

Meeting with Welfare Deputy Minister

Fakas said the organisation has repeatedly submitted proposals to the government and has sought a meeting with President Nikos Christodoulides since July.

He also revealed that a meeting has been scheduled with the new Deputy Minister of Social Welfare, Tina Pavlou.

The organisation expressed disappointment that the President's announcements were made before the consultation process it had expected to take place.

Call for stronger support measures

Fakas concluded by arguing that the number of Cypriot large families receiving support has fallen significantly in recent years, linking the trend to existing eligibility criteria and declining birth rates.

He said more substantial measures are needed to support families with children, particularly large families and those with three children, which he described as crucial to addressing Cyprus's demographic challenges.