Luxembourg will increase family benefits to fight child poverty
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Starting January 1, Luxembourg will increase family allowances and back-to-school benefits by several dozen euros per month. The government intends the increases to combat child poverty and help families meet basic needs.
The family allowance will rise by 45 euros per child monthly, with an additional 15 euros for children aged 12 and older. The back-to-school allowance will increase by 60 euros for children aged 6 to 11 and by 90 euros for those 12 and older.
All benefits paid by the Caisse pour l’avenir des enfants, including family allowance, back-to-school allowance, birth allowance, and a special allowance for children with disabilities, will now be indexed to account for cost of living. Officials hope the increased support will bring families closer to a reference budget of 465 euros per month for children aged 6 to 11 and 698 euros for older children.
However, reaching this minimum will require the future Complément de vie chère, a new financial aid program for low-income families with school-aged children. Luxembourg’s Parliament unanimously approved the measure, allocating an additional 200 million euros to the Caisse pour l’avenir des enfants, bringing its total budget to 1.3 billion euros. The changes will benefit 125,000 families and 207,000 children, with an additional 60 million euros earmarked for the Complément de vie chère, assisting 32,000 children.
