On Wednesday 24 June 2026, Luxembourg's Chamber of Employees (CSL) announced that it welcomed parts of the government's planned reforms to family benefits and the new Cost of Living Supplement (CVC) but argued that the measures do not go far enough to tackle poverty.
In two opinions issued as part of the National Action Plan for the Prevention of and Fight Against Poverty, the CSL welcomed the alignment of Luxembourg legislation with recent case law from the Court of Justice of the European Union (EU). The change ends discrimination affecting the children of the spouse or partner of cross-border workers, although the CSL said the draft law should go further to fully comply with the ruling.
The organisation also welcomed planned increases to family allowances and the back-to-school allowance, noting that they compensate for previous losses in value and provide additional structural support for families. It further supported the reintroduction of automatic indexation for several family benefits but called for similar increases to the birth allowance and the additional special allowance, while regretting that the previously announced fourth instalment of the birth allowance was not included.
Despite these measures, the CSL argued that some families would still need the Cost of Living Supplement to achieve a decent standard of living. It said families should not have to rely on social assistance to reach a minimum acceptable income.
Regarding the new Cost of Living Supplement, the CSL welcomed the creation of a single support scheme, harmonised eligibility criteria, simplified administrative procedures and the partial automation of applications, saying these changes could improve access to assistance. It also welcomed additional support for older people and schoolchildren.
However, the CSL criticised the limited impact of the reform on single people and two adult households, saying these groups would see little or no improvement despite representing a significant share of current beneficiaries. It also expressed disappointment at the absence of specific measures for students, who it said continue to face growing purchasing power challenges.
The CSL further questioned the overall approach, warning that the new supplements for children and older people could replace more ambitious increases to family benefits, minimum pensions and the social minimum wage. It also noted that cross-border workers remain excluded from certain social benefits reserved for residents.
According to the CSL, lasting progress in reducing poverty depends not only on social assistance but also on adequate increases in wages and pensions. It argued that minimum wages and minimum pensions should allow people to live with dignity while reducing reliance on social support.
