A squeeze in public funding for family allowances has prompted the Brussels Parliament to consider cost-cutting measures, but some lawmakers are keen to ensure that cuts will not increase the risk of child poverty.
Family allowances were de-federalised in 2014, meaning that they are still funded by the Belgian State but are overseen by the regional body Cocom. Since 2020, Iriscare has been responsible for the management of family allowances in the Brussels-Capital Region.
Families avail of either the public fund Famiris or private funds Infino, Parentia, Brussels Family and KidsLife to receive allocations of varying sums depending on their living situation.
The benefits in question cost the Federal Government €1 billion in 2o23. However, the federal grant is due to be reduced in 2025. This, combined with the lifting of a €10 reduction in benefits for children born before 2020, means that costs for Brussels will increase by €20 million in 2026. In anticipation of this, the spending review has proposed several measures that might mitigate the squeeze.
Target high-income families
Lawmakers wish to reduce allowances without increasing the risk of child poverty. One proposal advocates a general reduction in the amount of money granted to families with a higher income, which would save an estimated €15 million annually.
In another scenario, 8% of children from high-income families would cease to receive benefits at all, which would save the region around €50 million annually (5% of the budget).
Other measures present a significant threat to more vulnerable children, such as the potential extension of the €10 reduction for children born before 2020. The idea of capping benefits at €1,500 per month or once there are four children in a family have been met with criticism for their focus on cost-cutting rather than their harmful social effect.
In reaction to the spending review, MP Delphine Chabbert (PS) expressed concern that the universal rights of the child would be under threat if access to allowances were abolished, even for wealthier families. MP Bernard Cleyfart (DéFI) sought to reassure Chabbert that no drastic measures would be taken. "The extra cost, which is only around €20 million, can be resolved by a combination of a few simple and reasonable measures," he said.
