In‑cash child benefits cut the risk of poverty among children in the EU by an average of 10.6 percentage points, according to a new study published by the European Commission’s Directorate‑General for Employment, Social Affairs and Inclusion.
The impact varies widely between member states, with Austria showing the largest reduction in child poverty at 16.6 percentage points and Spain the smallest at 4.6 percentage points, the European Commission reported on Tuesday.
New findings also indicate that in around one third of EU countries, disadvantaged families receive less financial support than better‑off families.
Child poverty target for 2030
The EU has committed to reducing the number of children in poverty by at least 5 million by 2030, but progress towards that target has stalled, the Commission said.
The study also looked at “benefits in kind” — non‑cash support such as subsidised services and goods — and found these can reduce financial pressure on families by making essentials more affordable.
Increasing participation in early childhood education and care (ECEC) could raise maternal employment by up to 5 percentage points, the Commission said, referring to childcare and early years services that can help parents combine work and caring responsibilities.
For every €1 invested in quality benefits in kind for children, the estimated return is €5.26, based on expected gains in areas including education, employment and health.
The findings will feed into a forthcoming Commission Recommendation on child‑related benefits.
