Government to keep income tests for child benefits for larger families, MPs told

Nicosia, Cyprus. The government plans to maintain income-based eligibility rules for child benefits paid to families with three or more children, the House labour committee heard on Tuesday. MPs and social organisations had urged that the rules be scrapped.

Chairman criticises rejection of amendments

Committee chairman Giorgos Koukoumas, an Akel MP, spoke after the meeting and condemned the government’s refusal to accept the proposed amendments to the child benefit bill. He said:

“The government made it clear today that it will not listen to parliament, large families, families with three children, single parents, trade unions or the Commissioner for Children’s Rights,”

Koukoumas acknowledged that the bill contains some improvements. He argued, however, that it does not come close to addressing the needs of present-day families, and that single-parent households in particular would gain little. He also accused President Nikos Christodoulides of breaking election promises to strengthen support for single parents and to remove income and property tests for larger families, including those with dependent university students.

Size of the proposed increases

According to Koukoumas, the planned rises amount to €60 a year, or €5 a month per child, for one category of recipients. For another category, the rise is €27 a year, which is under €2.50 a month.

He compared this with other European countries. Germany pays €255 per child each month with no income criteria, Luxembourg pays benefits starting at €300, and Poland pays €185. In Cyprus, the top monthly payment is currently €49 and could climb to about €53 or €54.

Inflation mechanism and overall spending

Koukoumas also criticised the government’s rejection of a mechanism that would adjust income thresholds each year in line with inflation.

He said public spending on family and child support in Cyprus is below one per cent of GDP, which is less than half the European average. He put annual spending per capita at €277 in Cyprus, against an EU average of €830.

Koukoumas called for budget surpluses to be channelled to households struggling with the cost of living instead of being kept by the government.