Cyprus reforms child benefit scheme to expand eligibility

On October 13, 2026, the Deputy Minister of Social Welfare, Tina Pavlou, presented a new bill to the Parliamentary Labour Committee in Cyprus aimed at reforming the national child benefit system. The legislation proposes relaxing income criteria, which is expected to support an additional 23,000 families. The total cost of the government initiative is estimated at €12.5 million.

The reform introduces a 5% to 10% increase in financial support depending on income levels: households earning up to €22,000 annually will see a 10% increase, while those earning up to €44,000 will receive a 5% boost. A critical change addresses the "cliff edge" effect, where previously, a minor increase in family income resulted in the total termination of benefits. Furthermore, the bill links child benefits with social services, such as early childhood education and care, benefiting approximately 2,000 families and 2,800 children.

While lawmakers welcomed the proposal as a positive step against economic pressures, they emphasized that further improvements are necessary. The Deputy Minister clarified that this policy is not intended to address low birth rates, citing EU studies on the lack of direct correlation between benefits and demographics. The government aims to pass the bill before the end of 2026, with implementation scheduled for January 2027.