Austria’s government has moved to tighten access to family benefits, sending a new proposal to parliament that could limit payments for displaced Ukrainians and other protected groups, even as the review process is still ongoing.
Under the draft law, family allowance would no longer be available to people receiving basic state support. The measure is expected to apply retroactively from early July, after the previous regulation introduced only last October expired at the end of June. Authorities said applications under the new rules can already be submitted, according to ORF News.
Officials argue the change is meant to encourage more people to enter the workforce. The proposal targets those in basic welfare who have access to Austria’s labor market, including Ukrainians displaced by war and individuals with subsidiary protection status. Until now, recipients were only required to be available for work.
The reform would also end what the government sees as a “double benefit” system, where individuals could receive both basic support and family allowance at the same time. In a related move, rules for childcare benefits are being adjusted for subsidiary protection holders, removing the previous requirement to be employed in order to qualify.
At the same time, the government has proposed increased funding to support people with disabilities. A separate amendment to the Disability Employment Act would channel additional money into a fund aimed at improving job opportunities. The plan includes €65 million in 2026, followed by gradually decreasing amounts in the years ahead.
The proposals will now be debated in parliament, with feedback from the ongoing consultation process expected to be considered later this year.
