The Family 500 plus program was the fulfillment of the election promise of Law and Justice and came into force on April 1, 2016. In the first stage of the program, a PLN 500 benefit was due for each second and subsequent child in the family. Parents could receive PLN 500 for the first child only after meeting the income criterion.
The first reform of the 500 plus program took place on July 1, 2019, when the income criterion for the first child was abolished. This meant granting benefits to all children in the family. Another reform of the 500 plus program, or rather indexation, consisted in increasing the benefit from PLN 500 to PLN 800 for each child. The amount was indexed on January 1, 2024.
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Will the budget deficit accelerate changes in the 800 plus program?
The budget deficit is growing, which in optimistic assumptions was calculated at PLN 184 billion, which is 4.55 of our GDP. In order to limit spending and bring it down to 3%, government spending should be minimized to as much as PLN 70 billion. This is exactly how much, i.e. PLN 70 billion, is the annual budget of the 800 plus program.
The 800 plus program will certainly not be abolished, but we must take into account that it will be tightened. How?
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What changes will most likely await parents entitled to the 800 plus benefit?
Of course, the 800 plus program will not be abolished, but sooner or later we will have to take into account the modification of the eight hundred plus program. What will it involve?
There will be no reduction in the amount of the 800 plus benefit. The entities, i.e. the number of parents entitled to receive benefits, will be limited more quickly. The simplest way will be to introduce an income criterion.
For example, the obligation to work or take up work is a key condition for people applying for the new benefit of PLN 1,500 for children aged 12-36 months.
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Most likely, similar requirements will be slowly introduced in the event of changes to the rules for granting benefits for the 800 plus benefit.
We will most likely have 2 options in the form of the proverbial carrot or stick:
- a drastic scenario of changes in the 800 plus program will involve the introduction of an obligation for one or two parents to work in order to receive child benefits. If parents do not work, they will not receive the 800 plus benefit for each child;
- The motivating scenario will be that the next indexation of the 800 plus program and the increase in the amount of benefit for each child will apply only to those eligible (parents) who work and will be able to document it with an appropriate certificate.
Either way, politicians introducing changes to the 800 plus program will argue that families who avoid work and rely solely on money and other social assistance benefits should not be supported.
