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Minister wants family allowance overhaul
Luxembourg

Minister wants family allowance overhaul

13.01.2014 From our online archive
Luxembourg's Family Minister Corinne Cahen wants to reform the Family Allowance system so that parents receive the same amount of financial support for each child they have.

Luxembourg's Family Minister Corinne Cahen wants to reform the Family Allowance system so that parents receive the same amount of financial support for each child they have.

The minister revealed her plan in an interview with daily French newspaper “Le Quotidien” saying that changes could be effective from the end of this year.

Under the current system, family allowance grants increase for each child born to a family living in Luxembourg. For example, for one child parents could receive 185.60 euros but for two they receive more than twice that figure with 440.72 euros.

Ms Cahen said: “This (new fixed) sum would apply to any child born after December 31, 2014, for example. It would be a possibility without making any reforms retroactively. The system has not changed during the last 18 years.”

The so-called Mammerent, or mother's pension, would also be tweaked under the minister's plans to make distribution more equal.

“We think that people who earn enough don't need this support,” Ms Cahen said. “Our goal is to encourage women to work, even when they have children.”

With regard to “revenu minimum garanti” (RMG), a benefit which tops up the earnings of people on a low wage, the minister says this will remain since everyone deserves to be paid for work done.

“Currently, whether you work three, 10 or 20 hours, you receive the same amount. We want people to get paid for work even if they receive RMG,” she said.

However, all of these plans are still being developed, with no final conclusion reached, Ms Cahen said.