Flemish Government considers cuts to child benefit in budget talks

Flemish Government considers cuts to child benefit in budget talks
Credit: Belga / Michel Wiegandt

The Flemish government is examining possible savings to the "Groeipakket" ("growth package"), the region’s child benefit scheme, as part of ongoing negotiations to balance its budget.

The government is considering adjustments to several parameters used to calculate child benefit, including social supplements, care allowances and the composition of families. No specific amount has yet been decided, Het Laatste Nieuws reports.

The discussions come as the Flemish government seeks between €1.5 and €2 billion to balance its budget before the Minister-President's annual September budget statement. Other measures reportedly under consideration include changes to investment budgets and planned tax cuts.

Possible changes to how benefits are calculated

The Groeipakket provides financial support to families with children living in Flanders. According to the Flemish government, every child living in Flanders is entitled to a Groeipakket, which contributes towards the cost of raising children.

The system was linked to the health index from September 2025, with a guaranteed minimum annual indexation of 2%. The government has also already made changes to some components of the benefit. The kindergarten allowance was abolished after 2025, while from 2026 the school bonus is no longer paid universally and is instead reserved for children receiving the social supplement.

The possibility of further savings has prompted criticism from family organisations and the opposition. The Gezinsbond, a Flemish family organisation, has warned against turning the Groeipakket into what it calls a “krimppakket”, or “shrink package”. It argues that more than €1 billion has already been saved on the system in previous legislative terms.

The opposition PVDA has also criticised the possibility of further cuts. Flemish MP Lise Vandecasteele (PTB) called on coalition parties Vooruit and CD&V to resist further reductions.

Coalition partners divided over priorities

The issue is particularly sensitive because both Vooruit and CD&V have stressed the importance of the Groeipakket.

Welfare Minister Caroline Gennez (Vooruit) said the government has to work towards a healthy budget but argued that this should not come at the expense of investment in families and children. “We are working towards a healthy budget, that is our responsibility. But a healthy budget also means investing in people, in children and young people, and in families. And the Groeipakket is quite essential in that."

CD&V's Hilde Crevits similarly described the Groeipakket as basic support for families, particularly those already experiencing financial difficulties.

The government’s current discussions do not amount to a final decision to cut child benefit. The exact measures, and whether they will affect the amount received by families, remain part of the ongoing budget negotiations.

The Flemish government is expected to continue discussions over the coming days, with an agreement on the overall budget package expected by the end of September.


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