How much do families in Austria stand to lose with the new austerity package?

How much do families in Austria stand to lose with the new austerity package?

A new austerity plan in Austria will pause inflation-linked increases to family benefits from 2026, potentially costing households hundreds of euros.

According to the Minister of Family Affairs Plakolm, the non-valorisation does not distribute EUR 4.20 per month, which is expected to save more than EUR 200 million in 2026 and more than EUR 100 million in 2027.

The austerity measures were announced by the Minister of Family Claudia Plakolm (ÖVP). There should also be changes in the disbursements for Ukrainian displaced persons

The Austrian government must allocate 6.4 billion euros to transform the budget this year and another 8.7 billion euros in 2026.

The Federal Government's decision to suspend the valorisation of family allowance and childcare allowance in the coming years is affecting burdened families in an already tense situation. "Many families are already under enormous pressure – due to high food prices, rising rents or lack of care offers. The family allowance and child care allowance do not adapt to inflation, means real less support and brings many to the limit, criticizes Christia…

Family allowance and childcare allowance will not be increased in the next two years. Family Minister Claudia Plakolm (ÖVP) announced this in writing on Wednesday afternoon.