Austria’s families are set to lose hundreds of euros in the coming years, as the government continues to freeze key family benefits instead of adjusting them to inflation, according to Kurier. The move, designed to reduce public spending, means that payments like family allowance, child tax credits, and school-start support will steadily lose value as living costs rise.
New estimates from the Momentum Institute show how quickly the losses could add up. A family with two children is expected to miss out on 302 euros in 2027 and 425 euros by 2028. Larger families will feel an even heavier burden: those with three children could lose up to 668 euros by 2028, while families with four children may see losses climb to 918 euros. Even a single-child household will not be spared, with projected losses of over 200 euros within two years.
These benefits are fixed payments available to all parents, regardless of income. By not increasing them with inflation, their real value shrinks each year. Economist Sophie Achleitner from the Momentum Institute called the policy “socially backward,” warning that it reduces support at a time when many households are already under financial pressure.
The impact is expected to fall especially hard on women. Around 99 percent of childcare benefit recipients are women, and they also receive the majority of family allowance payments. As a result, cuts in these areas will disproportionately affect mothers.
At the same time, the government plans to scale back the family bonus, a tax relief measure for parents. While families with very young children and dual-income households will be protected, the policy aims to encourage more people to work. Critics argue this could deepen existing problems, as Austria still lacks enough affordable childcare.
The country already has one of the highest rates of part-time work among mothers in the EU. Experts say this is not simply a personal choice, but the result of limited childcare options and unequal care responsibilities at home, pressures that continue to shape family life across Austria.
