The Ministry of Social Affairs has drafted amendments to the Social Welfare Act that include nearly 20 changes aimed at updating the subsistence benefit system as a whole. For example, the changes would allow individuals who have turned 18 but have not yet completed secondary education and are studying in basic school, upper secondary school or vocational education programs to still be counted as children when calculating subsistence benefits. Under the amendments, these adult students would continue to receive the subsistence benefit at the child rate of €240 per month.

"We have already accounted for children up to the age of 19 in the Family Benefits Act and I think it is absolutely right that we build other systems in Estonia in a similar way. Therefore, with subsistence benefits, we want to continue recognizing 18-19-year-old students as having a higher threshold," said Kati Nõlvak, head of economic coping policy at the Ministry of Social Affairs.

The highest threshold would apply to such individuals until the end of the academic year in which they turn 19 or until they are removed from the school's registry. Under the current law, once a student turns 18, they are no longer eligible for the child-level benefit and their benefit amount automatically decreases.

"In other words, when a child turns 18, their benefit drops from €240 to €160. We want to change it so that it does not drop to €160 but remains at €240. That means the benefit would be €80 higher compared to the current legal framework," Nõlvak added.

Last year, more than 15,500 households received subsistence benefits. Of these, over 20 percent were households with children. Since not every family includes 18-19-year-olds, the proposed changes could affect more than 10 percent of all subsistence benefit recipients.

From a family perspective, another important change, according to Nõlvak, is the possibility to consider the child's time spent with each parent when determining subsistence benefits in the future.

"If the mother and father live separately and both are subsistence benefit recipients, and they have agreed on how and where the child resides — partly with one, partly with the other — then under the current system, the child can only be counted in one household."

Under the current system, both Mari and Jüri, living separately, would each receive €200 per month in subsistence benefits. An additional €240 would be paid for the minor child, but only to one parent, even though the child also spends time with the other parent. According to the proposed amendment, Mari and Jüri would each continue to receive €200 living separately, but they would be able to split the child's benefit — €120 to Mari and €120 to Jüri from the €240 allocated for the child.

The Ministry of Social Affairs is seeking feedback on the draft bill by mid-May. According to Nõlvak, the proposed amendments to the Social Welfare Act could reach the government in the first half of the fall.

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