Flemish Minister-President Matthias Diependaele wants to replace the birth grant in Flanders’ child benefit package with a new Flemish Growth Fund, De Tijd reported on Saturday.
Parents living in Flanders currently receive a birth payment of just over €1,300 when their baby is born. The payment forms part of the broader child benefit system, which also includes other allowances.
Several sources told De Tijd that the grant could now be scrapped. Under Diependaele’s proposal, the money would instead be paid into a yet-to-be-created Flemish Growth Fund.
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Each child would receive a virtual share in the fund. Through investment returns, the original €1,300 would be expected to grow to nearly €4,400 by the time the child turns 18, after which the money would be paid out.
The measure would turn money typically used for immediate baby-related costs into a small nest egg for adulthood. According to the newspaper, the funds could then be used for further study, investing or other major expenses, while also encouraging financial literacy among young people.
From 1 January 2028, €72 million currently earmarked for the birth grant would be channelled into the proposed fund. The government is said to be working on the basis of an annual return of about 7%.
Coalition partners Vooruit and CD&V have both reacted coolly to the idea, De Tijd reported.
