Birth rates, lower taxes and a single allowance: the government’s hypotheses to help those with children

The government is studying new measures for those with children. The decline in births would lead to a decrease in wealth and make it difficult to pay pensions. Many hypotheses, but we need to find the resources. The Single Allowance, which has been in force for just over a year, has so far cost over 17 billion

The face of Italy in the near future could be not very young, very old, and poorer if something is not done to push births, which have plummeted to an all-time low, or open the doors more to immigration. It is not only a cultural issue but also an economic one (loss of Gross Domestic Product, difficulty in paying pensions). For this reason, the government is aiming for new measures to support families, which however require a lot of resources (about nine billion a year to bring us into line with European levels).

The hypotheses on the table

There are several hypotheses: lower taxes for those with children, a tax bonus of 10 thousand euros a year, an increase in the Single Allowance. The latter, introduced just over a year ago, has become the pillar of welfare for those with dependent children. It absorbed the deductions that were discounted in the tax return and in thirteen months it cost 17.4 billion euros for over nine million children and young people.

How much is the Unique Check worth?

It has improved the lives of many families, especially those most in difficulty, with a monthly transfer from INPS which depends on income and savings. Since 2023 it has been increased to adapt it to the cost of living and for those with small children: it starts from just over 54 euros per month but can exceed 1,700 when the nucleus is very numerous. The average amount therefore varies a lot and in March the families who fared the worst for a child received 215 euros.

Far away from the rest of Europe

We are far from the 640 euros a month needed, according to the Bank of Italy, to support a child. And also distant from the rest of Europe, where over 2 per cent of gross domestic product is spent, while we are among the last with just over 1 per cent. In Germany, for example, there are 250 euros a month for each child, regardless of how rich the family is. And for those in difficulty there are other aids.