The 2027 state budget reveals a welfare policy moving at different speeds, with some groups receiving substantial increases in support while others see only marginal changes or no increases at all.
Students and people with disabilities emerge as the main beneficiaries, while funding for child benefit, single-parent families and low-income pensioners remains largely unchanged.
Behind the headline figures, however, the budget also reflects a significant redistribution of state spending, particularly through the introduction of a new disability-support framework.
Limited gains for families
The budget of the Deputy Ministry of Social Welfare allocates €140 million for child benefit and the single-parent family allowance, compared with €138.8 million in 2026.
The increase, less than 1%, does not automatically translate into higher payments for all families. Eligibility remains dependent on income and asset criteria, while the amount received varies according to household composition and earnings.
Funding for the Mother's Allowance remains unchanged at €7.2 million. The allowance is paid, subject to income criteria, to mothers with four or more children once their youngest child reaches the age of 18 and they no longer receive child benefit.
In early childhood care, €2.4 million is allocated to subsidise tuition fees and meals for children aged four until the start of compulsory pre-primary education. This is separate from the broader co-funded childcare scheme covering younger children.
The budget also includes €1.5 million for the "Together with the Baby and Mother" programme, the successor to the former Baby Grant scheme. Beyond providing essential items to families in need, it introduces home visits by social workers during a child's first year of life.
A further €50,000 is earmarked for families with triplets through one-off financial assistance and additional support until the children reach the age of four.
€10 million increase for students
One of the largest increases is recorded in educational grants administered by the Ministry of Finance.
Funding rises from €48 million in 2026 to €58 million in 2027, representing an increase of 20.8%.
The allocation covers not only the main state student grant but also:
- Special student allowances.
- Support for Greek students studying in Cyprus.
- Assistance for repatriated Cypriot students who meet the eligibility criteria.
The budget does not specify whether the additional €10 million will be used to increase individual payments, support more beneficiaries or a combination of both.
Support measures for vulnerable schoolchildren also continue, while €205,000 is allocated to assist young people previously under state care with education costs, vocational equipment and household items as they transition to independent living.
No increase for low-income pensioners
The allocation for low-income pensioner assistance remains unchanged at €95 million.
The grant supports pensioner households with incomes below the designated poverty threshold, with payments varying according to household composition and income.
A separate combined allocation of €3.6 million covers both:
- Easter benefits for pensioners.
- Special maternity assistance for unmarried mothers who do not qualify through the Social Insurance system.
Because the two schemes share the same budget line, the amount cannot be attributed solely to pensioner support.
Guaranteed Minimum Income falls sharply
A different picture emerges in relation to the Guaranteed Minimum Income (GMI).
The allocation falls from €205.7 million in 2026 to €120 million in 2027, a reduction of €85.7 million.
However, according to the explanatory memorandum accompanying the budget, this does not represent an equivalent cut in benefits. Instead, part of the beneficiary population, together with the associated funding, is being transferred to the Department for Social Inclusion of Persons with Disabilities under the new legislation.
Disability support expanded
The most significant institutional changes concern disability-related benefits following legislation approved in 2026.
The budget allocates €115 million for the Personal Assistance and Home Care Benefit, partly reflecting the transfer of beneficiaries from the Guaranteed Minimum Income scheme.
The framework includes:
- Disability benefits of up to €935 per month for eligible children up to age 18.
- Disability benefits of up to €405 per month for eligible adults.
- An increase in day-care and activity-centre allowances from €150 to €300.
- A 10% increase in personal assistance and home-care support.
These increases stem from decisions already taken in 2026 rather than new measures introduced for 2027.
Additional allocations include:
- €14 million for approximately 2,700 people with severe mobility disabilities, receiving monthly benefits of €450 plus possible cost-of-living adjustments.
- €9.8 million for around 2,000 visually impaired individuals, with a basic monthly allowance of €420.
- €15.6 million for approximately 1,150 quadriplegic beneficiaries, receiving €990 or €1,210 per month depending on their needs.
- €10.4 million for about 1,780 paraplegic beneficiaries, receiving €440 or €550 per month.
Further funding includes:
- €6 million for mobility allowances.
- €2.2 million for vehicle-purchase assistance.
- €2 million for wheelchairs.
- €2 million for technical aids.
Another €750,000 will fund holiday subsidies for people with disabilities through one-off grants of €300, €500 or €700, depending on eligibility criteria. Approximately 1,600 people are expected to benefit.
Housing support with caveats
In the broader housing category, total spending falls from €101.1 million in 2026 to €98.9 million in 2027.
While this reduction does not necessarily mean lower support for individual beneficiaries, it does reflect a smaller overall fiscal allocation.
The Ministry of Interior has budgeted:
- €20 million for revitalisation schemes in mountainous, remote and rural communities.
- €19 million for displaced-person housing schemes.
- €5 million for housing subsidies targeting young couples and individuals up to the age of 41.
The funds will be administered through district administrations.
An additional €4.8 million is allocated for monthly allowances and assistance to enclaved and resettled persons.
Under the scheme:
- The basic monthly allowance is €480, with supplements for dependants.
- Children attending schools in Rizokarpaso receive €490 per month.
- Eligible university students receive a separate €480 monthly payment.
Finally, €300,000 has been earmarked for the construction and repair of homes belonging to specific beneficiary groups, alongside a new maintenance and renovation plan for homes of enclaved and resettled persons expected to be introduced during 2027.
