Cabinet approves €12.5 million child benefit reform
The reform will raise payments for lower-income families, widen income thresholds and extend tuition support from January.
Nicosia, Cyprus. The cabinet approved a €12.5 million reform of child benefit on Thursday, increasing payments for lower-income families and widening income thresholds from January.
The measures are expected to benefit about 17,000 families and 23,500 children, Deputy Social Welfare Minister Tina Pavlou said.
Benefit increases and income thresholds
Child benefit will increase by 10 per cent for families with annual incomes of up to €22,000 and by 5 per cent for families with incomes of up to €44,000.
The income threshold for families with three children will rise to €90,000. For families with four children, the limit will increase from €69,000 to €100,000.
Families with five or more dependent children will continue to face no income criteria, in line with a government decision made last year.
Preventing loss of entitlement
Pavlou said the reform addressed a longstanding situation in which small increases in household income could result in families abruptly losing entitlement to support.
“This will no longer apply to any category,” she said, adding that the broader income thresholds would prevent small increases in earnings from depriving families of benefits.
Tuition and school support
The reform also extends tuition support for children up to the age of four years and four months.
President Nikos Christodoulides said the measure would benefit about 2,000 families and 2,800 children.
Pavlou said the government was combining financial assistance with services, including support linked to school costs and feeding programmes.
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