SHARE
COPY LINK

BENEFITS

Stricter sick rules push up ‘last resort’ benefit claims

Stricter rules for claimants of sick benefits and unemployment insurance benefits has led to a larger number of Swedes applying for social benefits, the last-resort benefits provided by local authorities.

The centre-right Alliance government, which came to power in 2006, has made it harder to claim sickness and unemployment benefits, particularly over a long period. The changes to sick benefits have had a particularly large impact, according to the Swedish Association of Local Authorities and Regions (SALAR):

“The Swedish Social Insurance Administration’s policy changes and stricter rules has meant increased costs for council social services,” said SALAR’s Leif Klingensjö.

The conclusions are based on a survey of 24 municipalities, with a combined population of 2.3 million. Half of the councils said costs had increased since the clampdown on sick benefits.

Union SKTF, which represents social workers, said a survey of 360 of its members confirmed the trend.

“The picture they give is that they are seeing more and more clients that they had not previously encountered,” said SKTF chairwoman Eva Nordmark.

Social benefits are awarded on a needs basis – a single person without children might expect to receive around 3,500 kronor per month, as well as extra money to cover costs such as housing. This is significantly less than sick benefits, which entitle people to initial benefits of 80 percent of previous income up to a ceiling.

TAXES

How Germany plans to increase child benefits and provide tax relief

Germany's governing coalition has agreed to increase child benefits (Kindergeld) and offer tax relief. Here's what you need to know.

How Germany plans to increase child benefits and provide tax relief
Photo: DPA

The cabinet of the coalition government, made up of Angela Merkel's Christian Democrats and the centre-left Social Democrats (SPD) agreed Wednesday to increase child benefit – or Kindergeld – by €15 per month next year.

The move is part of the Family Relief Act (Familienentlastungsgesetz), which aims to take the financial burden off middle and lower class families. It's part of an overall package which is setting the federal government back €9.8 billion over 2019 and 2020.

The child benefit is to rise to €219 per month on January 1st 2021 for the first and second child, to €225 per month for the third child, and to €250 from the fourth child onwards.

According to the bill, families will also receive tax relief. for example, the tax-free child allowance (Kinderfreibetrag) is to be raised by more than €500 to €8,388.

In total, families would be relieved of around €12 billion per year, said Finance Minister Olaf Scholz of the centre-left Social Democrats (SPD).

“This is good news for all families and children in Germany,” he said.

READ ALSO: Kindergeld – what you need to know about Germany's child support payments

 

Families are also set to benefit from a cash boost due to the coronavirus pandemic.

The planned Kinderbonus of €300 per child is to be transferred in two instalments of €150 each in September this year, and October. It will be paid to parents alongside Kindergeld.

Explained: How does Germany's Kinderbonus coronavirus payment work?

Boost for taxpayers

Meanwhile, all taxpayers in Germany are to receive a boost. The basic tax-free allowance will be increased from €9,408 to €9,696 from next year.

Meanwhile, the limit, from which the highest tax rate of 42 percent must be paid, will rise from €57,052 to an annual income of €57,919. A further increase of the income limits is planned for 2022.

However, all changes agreed by the cabinet must still be approved by the Bundestag and Bundesrat before they can come into force.

READ ALSO: Here's how Germany plans to reform 'Elterngeld' for new parents

SHOW COMMENTS