Child allowance affects the amount of income support, so the proposed double child allowance for December requires a temporary change to the law, according to Kela. current law would water down the proposal completely” />
Social benefits, such as child benefit, are taken into account when calculating income support. [email protected] at 20:28
According to the Ministry of Finance's budget proposal, the child allowance would be paid twice for each child in December.
Since the amount of child benefit increases according to the number of children up to the fifth child, the fifth child could receive up to a good 365 euros in child benefit in December.
Social benefits, such as child benefit, affect the amount of income support, so how the lowest-income families receive income support has been taken into account in the proposal?
According to the Minister of Finance Annika Saariko (central), the action will not affect the income support.
Kela's temporary benefits manager According to Kirsi Metsävainio, without a separate exception regulation, extra child allowance is taken into account as income in the subsistence allowance.
– In the subsistence allowance act, child allowance is in no way a privileged income, Metsävainio says.
The December double child allowance would require a temporary change to the law, so that the extra income could be prioritized, i.e. ignored when calculating the amount of support.
– Otherwise, in the case of basic income support, the benefit of the additional income transfer will be zeroed out.
Child allowance is a benefit that you do not need to apply for and it can also be terminated if you wish.
According to Kela's benefit manager, every euro considered as income in the case of income support reduces the support by the same about. Outi Järvinen/kl
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According to Finance Minister Saariko, the purpose of the double child allowance is to equalize the cost differences between Finns with families and those without families.
Saarikko said that he also considers the increase for high-income earners to be justified and reminded that the government has already made separate increases for, among other things, single parents and families with many children.
However, the additional child benefit requires a review of the Income Support Act .
– Now let's find out as soon as possible whether the matter requires an amendment to the Income Support Act. The first assessment of the position is that it would require. It is a very simple change to the Income Support Act, where this for once would not be taken into account in the income support, says Joel Kuuva, Saariko's economic policy special assistant.
The change is believed to be completed by December.
The Ministry of Social Affairs and Health (STM) is the key ministry that is consulted on the matter. The proposal also requires the government's support in the budget rush.
Kuuva emphasizes that the increase is one-time and does not cause permanent costs.