The Impact of Abolishing the Child Allowance and Multi-Child Supplement on Families and Workforce

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KDU Chairman Calls for Abolition of Child Allowance Supplement

KDU Chairman Stefan Sarmes has voiced his belief that people are being incentivized in the wrong way due to the child allowance supplement, and that its abolition will promote a stronger work ethic and reduce dependency on benefits. Sarmes argues that individuals who have smaller incomes and multiple children tend to receive a larger share of these increasing contributions.

However, the Christian Democrats’ party board has expressed concerns that removing the supplement could create hardships for many families with children. According to KD’s party secretary Liza-Maria Norlin, calculations show that around 15,000 children would be at risk of economic vulnerability if the supplement were abolished.

Norlin does suggest the possibility of adjusting the terms of the allowance so that it only applies after the birth of a third child. She also criticizes the multi-child allowance, stating that it is not accurately distributed. Norlin suggests that housing allowance for families with children may have a better effect, signaling the party’s willingness to review this alternative approach.

The child allowance in Sweden is currently set at SEK 1,250 per child per month. Additionally, families with more than one child receive a multi-child allowance, which increases with the number of children they have. For example, those with two children receive a supplement of SEK 150, while those with six children receive SEK 4,240, according to Försäkringskassan.

The debate surrounding the child allowance supplement is ongoing, with differing opinions on its impact and the most effective way to support families with children. As discussions continue, policymakers will need to consider the potential consequences of any changes to the current system and carefully weigh the interests of all stakeholders involved.

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