The Ministry of Consumer Affairs finalizes the design of a universal parenting benefit of 200 euros per month per child which, according to sources from the department headed by Pablo Bustinduy cited by the newspaper The Spanishmay be made compatible with existing state and regional aid.
The stated objective is to turn it into basic aid for all families with children and to contribute to reducing child poverty and stopping the decline in the birth rate, two of the country’s main social and demographic problems.
The benefit, which will depend on the approval of some new General State Budgets and from its negotiation within the coalition Government, to subsequently pass through Congress, it would be paid for each child up to the age of 18. In practice, its compatibility with other instruments would allow some families to accumulate much higher amounts during the first years of the child’s life.
According to the scheme exposed by Consumer sources to the aforementioned media, the 200 euros per month could be added to the 100 euros per month of the maternity deduction for working mothers with children up to three years old, up to 110 euros of the child support supplement linked to the Minimum Living Income (IMV) in vulnerable households, and, in certain autonomous communities, additional benefits.
For example, in the Community of Madrid there is aid of up to 500 euros per month during the first three years of life. With all this, a mother could approach 1,000 euros per month per child under three years of age, although this figure would vary depending on the territory and the economic situation of the home.
Furthermore, not all communities offer direct aid in the form of a monthly payment. In regions such as Andalusia, Navarra or the Valencian Community, part of the birth support is granted as tax deductions. This means that its effect depends on the obligation to file the Income Tax return and how much personal income tax has to be paid.
Universality and tax progressivity
According to the same information, the department headed by Pablo Bustinduy defends the universal nature of the aid as it is not conditioned by the level of income for its access. “The universal benefit would guarantee effective access to all families and would extend support to all children, following the models consolidated in Europe,” sources close to the ministry say to the aforementioned media.
Consumption’s argument is that conditional systems, such as the IMV supplement or the deduction for working mothers, leave out households that do not meet formal requirements (for example, not declaring personal income tax) despite being in a vulnerable situation. The new aid, on the other hand, would serve as basic aid for all families with children and could be expanded in cases of greater need, such as in single-parent households or those that already receive the Minimum Living Income.
The main objection is that the aid would also be collected by families with high incomes. According to the Ministry, this would be corrected through income tax. Families with lower income would receive full aid, those with middle income would return a part when filing the declaration, and those with high income would return it in full. That is, everyone would collect it at the beginning, but the adjustment would be made later through personal income tax.
In its initial approach, the requirements would be limited to those usual in any state benefit: having dependent children and residence in Spain.