Government plans to end family allowance for people in basic welfare support

Background: Family allowance and basic welfare support

Those affected by the reform are primarily Ukrainian displaced persons who receive basic welfare support in Austria. According to APA reports, they are among the largest groups currently receiving family allowance. Other groups of persons in basic welfare support would also be covered by the new regulation.

The government had already addressed the issue in the Council of Ministers and pushed the government bill through the fast-track process. Following Wednesday's decision, the parliamentary process is now to be continued in autumn 2026. Submissions received are to be taken into account.

Timeline and parliamentary proceedings

The opposition and social organisations had previously sharply criticised the regulation introduced in October. The now-planned withdrawal or restriction is therefore generating additional debate about the equal treatment of displaced persons and about the financial situation of affected families.

Critics warn that families with children in basic welfare support could end up in financial difficulties as a result of the loss of family allowance. Supporters of the reform point out that basic welfare support already includes in-kind and cash benefits for subsistence.

Reactions and open questions

The final decision on the government bill lies with the National Council. Should the amendment be adopted as planned, it would be one of the most far-reaching changes to family allowance practice in recent years.

Family allowance in Austria is a state support for families with children and is generally based on income and the number of children. For displaced persons from Ukraine, it only applies under certain conditions and has been repeatedly adjusted since the beginning of the Russian war of aggression.