Austria Unveils Sweeping Benefits Reform With Cuts for Large Families

Austria

VIENNA: Austria’s coalition government has unveiled the long-debated overhaul of its social welfare system, a reform designed to streamline benefits, enforce stricter integration rules, and target greater support toward children, according to “Kronen Zeitung”.

The initiative, presented Monday by Integration Minister Claudia Plakolm (ÖVP), Social Affairs Minister Korinna Schumann (SPÖ), and NEOS parliamentary leader Yannick Shetty, is built on three pillars: nationwide uniform rules for benefits, mandatory integration measures from day one, and a child-focused model providing direct aid in healthcare, education, and nutrition.

The government argues the changes will replace Austria’s fragmented patchwork of welfare schemes with a fairer, more sustainable system. Officials also stress the reform is a long-term project, with its implementation date set for January 2027. Federal states will be closely involved, beginning with a joint session on September 25.

Ministers framed the reform around competing priorities. Schumann emphasized lifting children out of poverty and creating “real opportunities” rather than simply administering aid. Shetty underscored the need to prevent “immigration into the welfare system” by tying support to language, work, and values requirements. Plakolm took a tougher stance, warning that billions are spent on people who have never contributed to Austria’s system. “Social benefits must be temporary, the very last safety net, not a lifestyle,” she said.

The reform is already stirring controversy. According to Kronen Zeitung, one proposal could see family allowances deducted from social aid payments. That would reduce monthly payouts for some large households, such as a Syrian family once receiving €9,000—from €9,000 to €6,000.

The debate underscores the political risks ahead for Austria’s government as it balances public pressure, legal hurdles, and coalition tensions.