Coalition ready to review benefits system

The money in the state budget has to be counted.Photo: Liis Treimann

The new coalition has decided that pensions will not be reduced and indexation will continue, but by autumn it should become clear to what extent, for example, child benefits can be changed and whether benefits can be paid as needed, reports Rus.ERR.

Need-based payments may mean that some social benefits are not paid to people who do not need them, such as those who are wealthier or have higher incomes.

“It is important to assess the impact on households. How many households – with one, two, three or more children – fall into a certain income decile and how the changes may affect the financial well-being of these families,” said Minister of Social Protection Signe Riisalo (Reform Party).

A total of 841 million euros was spent on benefits last year. The largest share of this was made up of various parental benefits, the total amount of which last year was 349 million euros.

Source: www.dv.ee