Cyprus government introduces bill to reform child benefit policy

The Cypriot government has submitted a new bill to the House of Representatives aimed at reforming the child benefit system. This legislative initiative seeks to address inflationary pressures and the high cost of living by expanding eligibility criteria and increasing the financial support provided to families. The reform includes measures to prevent the arbitrary loss of benefits when a family's income increases marginally, effectively providing a more stable support mechanism for the middle class.

According to the official impact analysis, the reform will cost approximately €12.5 million annually. The government estimates that these changes will benefit roughly 17,000 additional families and 23,500 children. The initiative corrects long-standing issues, such as a historical flaw where minor income increases could lead to a significant loss of benefits, a problem dating back to a 2003 policy framework. The bill is currently under parliamentary review with an intended implementation date of January 1, 2027, provided it is passed by the legislature.