Single family allowance: this is how it works

The House already approved the law last summer. Now it’s up to the Senate to give the green light to the single and universal allowance for children. The contribution should arrive for everyone starting July 1st. The law is the one wanted by Minister Elena Bonetti of Italia Viva who collected a 2014 proposal from the Democratic Party. The primary objective is support for families, which should be the first step in favoring the birth rate and employment of women.

WHAT IS IT
It is a monthly contribution or a tax credit for each child from the seventh month of pregnancy to 21 years of age.

For adults aged 18 to 21, the allowance can go directly to the children. There is no age limit if dependent children have disabilities.

The allowance is unique because it replaces all forms of family support currently in place: deductions, family allowances, baby bonuses and mother bonuses. And universal because, theoretically, it is up to everyone. It goes to workers, unemployed, pensioners, citizens with citizenship income, beneficiaries of other social measures. Categories are included that until now had no access to family support measures.

HOW MUCH
The maximum amount is 250 euros per month and is based on the ISEE, the Equivalent Economic Situation Indicator. It is divided equally between the parents. There are increases starting from the third child, from 30 to 50% more if the child has disabilities and for mothers under 21. The allowance is lower for children between 18 and 21 who study, are engaged in courses of training or unemployed registered in the employment centers.

MAKING THE ACCOUNTS
Estimates say that the one-time allowance will be awarded to around 28 million people. That’s 6% more than those previously benefited. However, a study by Arel, the E. Gorrieri Foundation and Alleanza per bambini indicates some critical issues.

The 20 billion available per hour would not allow for 250 euros per family, 800 million euros more would be needed every year. The maximum amount would reach 161 euros for each minor child and 97 euros for children between 18 and 21 years old. There are families who would lose out. Employees, on the other hand, lose an average of € 381 per year compared to now. Self-employed and incapable are favored, those with so low income as not to submit an income tax return, hitherto excluded from family allowances.

Per the State 68% of households earn money, only 2.4% of households do not undergo changes. 29.7% of families lose this: those with high assets and incomes, those who have children aged 21 and over, families over 3 children, unmarried couples, who must present the ISEE of both parents.

WHEN
The law defines the regulatory framework. Within 12 months the government will have to make legislative decrees. However, it should do so within three months because the disbursements of the 3 billion counted for 2021 should start on July 1st.

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