According to the Ministry of Family Affairs, the measure seeks to reinforce social cohesion, combat poverty and guarantee a decent standard of living for residents. The allowance primarily targets low-income families, elderly people and households with school-aged children. In some cases, support may reach up to €3,000 per child per year.
Family Minister Max Hahn described the bill as an important first step in implementing the country’s first National Action Plan To Combat Poverty. He said it reflects the government’s ambition not only to outline measures but to put them into practice within the planned timeframe.
The new CVC replaces several existing benefits, including the cost-of-living allowance, the energy bonus, financial assistance for the elderly and the subsidy for low-income households (SMFR). By integrating these schemes into a single instrument, the government aims to simplify procedures and increase support, particularly for families with school-aged children.
One of the key innovations of the reform is the harmonisation of eligibility criteria and income thresholds, alongside the introduction of a sliding scale that adjusts the amount granted according to household income.
Families will only need to submit one application, reducing administrative hurdles and helping to address the underuse of social benefits. Once granted, the allowance will continue to be paid as long as eligibility conditions are met. For recipients of REVIS, the payment will be made automatically.
The CVC will also serve as a reference point for other social benefits. Applicants will be able to apply simultaneously for a rent subsidy, further streamlining access to support. In addition, beneficiary information will be shared with municipalities to improve coordination of aid at local level.
