The annual increase in social benefits, which have not yet been valorised, will come from 1 January 2023. The necessary legislative amendment was discussed on Friday, Minister of Social Affairs Johannes Rauch (Greens) announced in a press conference. In the future, the child benefit, the child discount, the childcare allowance, the study allowance and the sickness benefit will be adjusted annually in line with inflation. Support for the coming school start will also be tightened.
According to Rauch, an estimated four billion euros extra costs are estimated for the valorisation in 2026. The inflation development from August of the previous year to July of the relevant year serves as an observation period. The adjustment is therefore determined annually – just as with pensions. Benefits such as nursing allowance or social assistance are already appreciated.
Increase from January 1, 2023
The new scheme will be evaluated over a six-week period. The decision in the National Council should be made in the autumn. From January 1, 2023, it will then be increased, so “exactly in the price increase”, as the department head put it. According to Rauch, about 1.3 million people will benefit from the increases.
He also refers to the already agreed payment of increased child benefits in August. A special payment of 180 euros is planned. In addition, there is now more support for children from low-income families, Rauch announced. You will receive extra vouchers for the purchase of school supplies.
School start vouchers are being increased
This year, vouchers were planned for an amount of 80 euros. Now, given the development of inflation, it is being increased. “Because we will be confronted with a clear stress situation in the coming months,” said Rauch. In concrete terms, about 50,000 schoolchildren will receive extra vouchers worth 40 euros.
In previous years, packages with goods of up to 100 euros had been distributed. The fact that there was a budget cut this year had recently sparked criticism, but that was because there was less EU funding, Rauch explained. Now it will be raised from its own budget. According to the minister, another 2 million euros will be added.
Source: Krone
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