The Austrian government plans to provide less family support until 2029
If the Austrian government decides to suspend the adjustment of family benefits according to inflation as part of budgetary consolidation measures, this will lead to financial losses for families until 2029.
According to calculations by the Momentum Institute, a family with two children will lose 165 euros in 2026, and 291 euros in the following year. If this freeze continues until 2029, their loss will reach 512 euros.
For larger families, such as a family with five children, they will lose 454 euros in 2026 and 799 euros in 2027. Without adjusting the aid according to inflation until the end of the legislative term in 2029, their loss will amount to 1,408 euros.
Barbara Schuster, Deputy Chief Economist at the Momentum Institute, explained that social assistance has been losing its purchasing power for decades because it has not been adjusted in line with inflation. She emphasized that reducing this assistance places a heavy burden on low-income families and increases the risk of poverty that is already widespread in the country.
The institute also pointed out that women will be more affected due to the lack of adjustment of child benefits according to inflation, as 54 percent of those affected are women, compared to 46 percent of men. Additionally, the reduction in child care allowances affects women almost entirely at a rate of 94 percent, while freezing the adjustment of the child tax credit leads to additional harm specifically affecting women.