Luxembourg's Children Future Fund (Caisse pour l’avenir des enfants, CAE) is currently seeking to recover almost €9.6 million in overpaid benefits from more than 2,100 recipients. The sums involved relate to family allowances, birth grants, and back-to-school payments that were paid out in error, according to information released this week by Minister of the Family Max Hahn, in a parliamentary response.
Between 2021 and 2025, the CAE conducted in-depth investigations into 326 cases where a child's residency status was unclear. In around a quarter of these cases, it was not possible to establish that the child in question was actually living in Luxembourg. The number of such investigations increased each year until 2024, before declining in 2025. In the first six months of 2026 alone, the CAE issued 57 decisions and carried out six on-site inspections.
To verify families’ eligibility, the CAE may request rental agreements, utility bills, school certificates, and may consult with local authorities, police, educational services, or even social security bodies abroad. When doubts persist, the CAE can organise in-person visits. In 2026, a dedicated team was set up to monitor cases systematically and identify irregularities more effectively.
Family Minister Max Hahn emphasised that receiving too much in benefits does not always indicate fraud. Overpayments often arise when families move abroad without informing the CAE, when their circumstances change, or when a parent begins working in another country, which can transfer responsibility for payments to a different state.
If it is found that benefits were paid out in error, the CAE can withdraw entitlement to those benefits, even retroactively, and demand repayment. Where possible, amounts owed are deducted from future payments. If debts are not settled, the CAE may initiate legal proceedings or request assistance from authorities in the recipient’s country of residence.
Failing to declare a significant change, such as a new address, can result in a fine up to the total of the overpaid amount. Cases suspected to involve criminal fraud may be referred to the public prosecutor. The CAE has up to 10 years from the date of payment to recover benefits paid in error.
