New Coalition Planning to Double Child Benefits ({{commentsTotal}})

Statistics Estonia's findings were announced on Child Protection Day.
Statistics Estonia's findings were announced on Child Protection Day. Source: Photo: Scanpix

The Social Democrats and the Reform Party have agreed to increase the monthly child allowance to 45 euros from the current 19.18 euros, in what is one of the major issues in ongoing coalition negotiations.

The allowance is paid per child for a family's first and second children. Additionally, low-income families will be eligible for a further 45 euros per child each month, bringing the total for each of the first two children to 90 euros

The allowance for a family's third child will also increase under the agreement, from 76.6 euros to 100 euros, the Reform Party said in a press release today.

The new figures are likely to come into force from the beginning of the next year.

How the increase will be funded is as of yet unclear. Allaying concerns over how the more socially tinged planks can be funded during a international security crisis, the party said the defense budget will remain at current levels.

The child allowance, which last saw an increase over ten years ago, has been a major topic for the Social Democrats, having used filibustering tactics during the 2014 budget votes in Parliament to promote the idea, but at that time fruitlessly.

The two parties have been in coalition negotiations since last week, and are expected to make the partnership official later this week.