Austerity measures affecting families and Ukrainian refugees
Family Affairs Minister Claudia Blackolm (ÖVP) announced new changes to the government's budget reduction plan on Wednesday afternoon, including cuts to payments allocated for Ukrainian refugees.
It was mentioned that any alternative agreement to the current arrangements, which end in November, should contribute to the budget and encourage more Ukrainians to enter the labor market.
The parliament had decided in March to extend the eligibility of Ukrainians for family benefits and child care allowances until the end of October. Days later, Blackholm announced the formation of a working group to assess the current rules due to suspicions of misuse in some cases.
On his part, Federal Chancellor Christian Stocker (ÖVP) defended the savings measures, emphasizing that "no one will receive a lower amount, but the increase will be suspended for two years," pointing out that the annual adjustment system had not been in place until recently.
It is now certain that the freeze on the annual increase will also include the family child allowance, after the increases in "Kinderabsetzbetrag" have already been confirmed to be halted.
The amount of family allowance depends on the child's age: from 0-2 years 138.4 euros per month, from 3-9 years 148 euros, from 10-18 years 171.8 euros, and from 19 years and above 200.4 euros. According to the Ministry of Family, the freeze results in an average of 4.20 euros not being paid monthly. This measure will save more than 100 million euros in 2026 and more than 200 million in 2027. As for the child care allowance, the state will save 30 million euros next year and 55 million in 2027, after the increase for this year has already been implemented.
Up to 10% of the funding allocated for projects in the ministry will also be reduced, along with a decrease in administrative expenses such as printing.
The leader of the NEOS party, Beate Meinl-Reisinger, confirmed that families are still receiving support, especially in the education and childcare sectors, but the bulk of the savings is being made within the system itself. She emphasized that restoring balance in the budget reflects responsibility towards taxpayers and future generations.
However, Vice Chancellor Andreas Babler (SPÖ) refused to comment on the details ahead of the upcoming budget speech by Finance Minister Markus Marterbauer, merely confirming his general support for the agreed-upon savings plans.
In contrast, the reactions from the opposition were angry. Dagmar Belakovic from the FPÖ party described the decision as unacceptable, considering that it burdens families and single mothers, while aid is given to people who have not contributed to the Austrian social system. She emphasized that if the aid were limited to Austrians, there would be no need for this freeze.
For their part, both Barbara Nissler and Jakob Schwarz from the Green Party criticized the halt of the annual amendment, describing it as a "real cut" that harms low-income families, as this amendment provides justice and enhances financial planning capability.
The Secretary General of Caritas, Anna Barr, considered that the austerity policy is unavoidable, but she emphasized the need not to burden the most vulnerable groups with the costs, describing the halt of the annual adjustment as a "regrettable setback."
The file for the agreed salary increase for government employees for 2026, which stipulates a raise of 0.3% above the inflation rate, has not yet been opened. However, Stucker indicated the possibility of reviewing this agreement if negotiations among social partners show a willingness to concede.