An LCGB delegation met with the Minister of Family Affairs and Integration, Corinne Cahen, for an exchange of views on the reform of family allowances which was adopted in June 2015 by the Council of Government.
The meeting was reportedly organised due to concerns from the trade union LCGB that the Government had not put into place the measures of the agreement of 28 November 2014, which required the regular adaptation of family benefits according to increases in the cost of living.
This model was put into effect after the depreciation of 18.86% to family benefits due to their indexation in 2006. The Minister stated that preparatory work for this adaptation was being performed by three separate minsitries, with the first phase of the process involving the definition and calculation of the difference between the value of family benefits and median salary, which will go on to represent the adaptation mechanism of family benefits. The Minister also stated that she will remain open to any concrete proposals that would further advance this preparatory work.
Another issue which was discussed was the concern shared by LCGB that the bill is more focused on reducing state spending, and that certain elements of the reform may increase inequalities. These include for example the lowering of the age limit for family allowance from 27 to 24 years and the abolition of the payment extension of the special allowance beyond the age of 18.
LCGB reportedly requested that the Government refer the family benefits reform project to the agenda of the tripartite meeting which will take place on 12 October 2015, in order to finalise the adaptation model of family benefits according to the cost of living. The Minister welcome the proposal, as it will allow for a more concrete advancement of the ongoing preparations.
