New child allowance: who gains? Who loses?

Antwerp University’s Centre for Social Policy has examined the impact of the Flemish government’s child allowance reforms.

Antwerp University’s Centre for Social Policy claims that only 40% of families with two children will be better off under the new child allowance system. Among families with three or more children this figure plummets to 28%. In contrast 90% of families will only one child will be better off.

For families already receiving child allowance nothing will change, but children born after 1 January 2019 will fall under the new system that awards a fixed amount, 160 euros, for each and every child. Children from deprived backgrounds or who go to school early will benefit from an increased allowance.

The Flemish government earlier insisted that the reform would cut the risk of poverty for all families. Only for families with four or more children would the poverty risk remain at the same level.

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