The agreement signed between Reform, SDE, and Eesti 200 states social benefits will be analyzed and means testing introduced, so only those in need get the money.

The largest social benefit is pensions which cost €2.64 billion each year, but these will not be touched.

Another big portion of the money paid out by the Social Insurance Board is for family benefits, totaling €841 million last year. Of this, €349 million is allocated to various parental allowances.

Minister of Social Protection Signe Riisalo (Reform) said parental allowances are not always classed as social benefits, but sometimes compensate for lost income. The coalition agreement does not mention changing the system, but she would like to raise the question.

"We remember here at the end of last year, when there was a discussion about shortening the period of parental benefit, I do not see that it could be done or that it would be done. But as far as the changes to the parental benefit period are concerned, I think that they should at least be considered," she said.

The Social Insurance Board also pays out child support totaling €487 million. In 2023, this was divided between benefits for first and second children (€237 million) and third children (€236 million). This is paid to all parents, regardless of income.

It is this benefit that Riisalo thinks could become means-tested. An analysis should be completed by the autumn.

"Today we have universal child benefit. The question is, what the analysis shows, whether universal child benefit is in any way logical and justifiable. I do not have an answer to that today," said Riisalo.

"The other big question is, of course, the family allowances for families with children. Is every family with three children, which is the largest group of families with children, in a position economically to need public taxpayers' money every month? Or is it possible to look at it on the basis of need?" she said.

"It is important to assess the impact on households. How many households – with one, two, three or more children – fall into which income group, and how the change could affect their livelihoods. It is perfectly understandable that if there are more than three children in a family, the circumstances are absolutely different. Let's start with the simplest. A normal car can fit five people, a family of three children, but if there are more children, of course the needs are different," the minister added.

Riisalo added that nothing has been decided yet and she does not know where the analysis could lead. There is no target figure for the cuts, this is not how the ministry conducts analyses, she said.

The third biggest benefit paid out by the Social Insurance Board is related to disabilities, which totaled €59 million last year. Riisalo said there are no plans to reduce benefits for disabled people, and currently the car tax bill will increase subsidies for disabled people.

€55 million worth of benefits are also paid out in other ways that do not fit the above categories. Among them is support for pensioners living alone, which comes to €12.7 million. Riisalo singled this out among others. At the same time, no decisions have been made.

"As a result of the analysis, we can then assess if and how to make one or another support needs-based. What impact this would have on the target groups of the population concerned by this support," she said.

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