Austria Ends Family Allowance for Refugees in State Care

Austria

Refugees living in Austria under the country’s basic welfare system will no longer be eligible to receive the family allowance, a change that will affect thousands of people, including many who fled the war in Ukraine, according to Kronen Zeitung.

Until now, refugees in basic state care could receive the benefit if they were available for work. That rule expired on June 30. Under a new proposal, which will take effect retroactively from July 1, receiving both basic welfare support and the family allowance will no longer be possible.

The draft legislation is currently open for public consultation until July 24 and is expected to be approved by Austria’s National Council and Federal Council in September. Applying the measure before Parliament has formally passed it is considered an unusual legislative procedure.

The change applies to everyone receiving Austria’s basic welfare support, including people with subsidiary protection status. An exception will remain for migrant families whose children have severe disabilities.

Families who are not part of the basic welfare system must still meet existing requirements to qualify for the family allowance. These include having the child’s main place of residence in Austria and living together in the same household.

One important rule, however, will be removed. Parents will no longer have to prove they are available for work in order to receive the family allowance. In addition, eligibility for displaced persons will now be linked directly to their protection status, replacing the previous time limit on the benefit.

Austria currently has around 30,000 Ukrainians in the workforce who are fully insured through their jobs. About 700 more people arrive each month. Most spend some time in the basic welfare system while learning German or having their professional qualifications recognized before entering the labor market.

The proposal has drawn criticism from Andreas Achrainer, head of Austria’s Federal Agency for Reception and Support Services. Speaking on the Austrian public radio program Ö1 Morgenjournal on Wednesday, he said the government was sending a message that “integration is worth nothing to us.” He warned that, in the end, it would be children who suffer most from the policy.

Achrainer also pointed out that, under the new rules, parents will no longer need to be available for work in order to qualify for family allowance or childcare benefits, arguing that the changes send mixed signals about Austria’s integration policy.