Almost every 4-5 years, the Reform Party raises the idea of replacing the universal child benefit system with one bases on needs assessment. A statement made by former Prime Minister Andrus Ansip in 2008, in which he compared child support to throwing money out of an airplane, has become legendary. Now, however, the Reform Party is split on the issue.

Signe Riisalo (Reform), chair of the Riigikogu's Social Affairs Committee, pointed out that the system of child benefits has worked well. However, the current low birth rate in Estonia means needs-based benefits need to be given more consideration.

"The Reform Party has also said during several election cycles that we need to provide support to people on the basis of need, which is absolutely correct. Now the question is whether it makes sense to make a slight change, in this sense to the financial measures for child benefits, which have worked well, and have, up to a point been good, because we have an extremely difficult situation regarding the birth rate," Riisalo said.

According to Riisalo, Estonia's low birth rate means it is unreasonable to start making changes to the current benefits system. She recommends that any politician who wishes to do so should first do away with child benefits themselves.

According to Minister of Finance Jürgen Ligi (Reform) Estonia's family policy is extremely generous. Therefore, he continues to believe that universal child benefit would be too costly and inefficient for the state.

"The main technical obstacle, apart from the fact that people are used to receiving child benefits, is the family structure. In fact, what ought to be established is who and what the real income of a family is, whether the real father supports the family or whether families are relatively dispersed. There are very few traditional families in which there is a mother, a father and children, and where it is possible to add up the incomes to know who the beneficiary is. If these kinds of moral hurdles have been created, how does the state decide whether or not a child will receive a share of both their parents' income?" said Ligi.

According to Riigikogu MP Diana Ingerainen, the potential change to child benefits to a means-tested system is among the topics on the agenda for coalition talks, but has not yet been discussed. Eesti 200's position on the issue is the same. They believe benefits system must be based on need.

"I understand that databases don't communicate it, data protection doesn't allow it and we can't map the context at all of where the child or the beneficiary lives. But I think it will be a dead end if we don't start looking closely at what this person really needs to cope, especially the child," Ingerainen pointed out.

Although it is not possible to move to needs-based support in the short term, Ingerainen believes that is still the direction things ought to move in. The Ministry of Social Affairs has already completed a study on the potential impact of changing the universal child benefit to needs-tested or parental income-tested one by the fall. According to Grete Lehe, head of family policy at the ministry, it has been agreed that the calculations will be made public in mid-May.

---

Follow ERR News on Facebook and Twitter and never miss an update!