The Lithuanian Free Market Institute has examined draft amendments to Article 6 of the Law on Benefits for Children and submitted its comments and proposals to relevant authorities. The law proposes a 120 euro monthly allowance for children from birth to 18 years when the average household income per person is less than 1.5 of state supported income and a 120 euro monthly allowance for children from birth to 18 years without regard to the income of the household with two or more children. Currently, the allowance amounts to 28.5 euro and is paid until the child reaches the age of two.
In LFMI’s view, an increase in benefits for children will reduce parents’ incentives to work or seek a better-paid job, there is a need to evaluate whether the proposed regulation will not duplicate the existing forms of support, and the law should be seen in light of other draft proposals on increasing the support for families. Given the aforementioned, LFMI calls for the rejection of the draft law.
The full position paper (in Lithuanian) is available here.