Change in Family Allowance: Families to Lose Several Hundred Euros in 2026
A change in family allowance will cause a bitter loss for all families with children in Austria from 2026 onwards. Clear figures and an illustrative example calculation here on Finance Law | Austria show the extent of the problem.
Finance Minister Markus Marterbauer (SPÖ) presented the double budget for the years 2025 and 2026 in parliament today. It was clear from the start: the Austrian federal government must save money.
At the core of the budget is a billion-euro austerity package. Cuts are being made across the board. Particularly bitter: families also have to tighten their belts.
Family Allowance, Childcare Allowance, and Child Tax Credit
Specifically, family allowance, childcare allowance, and child tax credit will be frozen in 2026 and 2027.
Dr Mariella Stubhann MPM MBAFinanz & Recht „Es wird keine Anpassung an die Inflation erfolgen und Familien werden mehrere hundert Euro pro Jahr verlieren.“
Of course, politicians are trying to sugarcoat the misery. The argument is that no one will receive less, only the increase will be suspended for two years. But the truth looks different.
In fact, suspending the inflation adjustment of the family allowance only means no reduction on paper. But in reality, the money, and thus family allowance, childcare allowance, and child tax credit lose significant value every year.
Finance Law | Austria has calculated how many hundreds of euros families lose per year.
A Real-Life Example
A family with four children aged between 10 and 18 receives per child in 2025:
Monthly in 2025
- Basic amount per child: € 171.80
- Increase through sibling scaling (for 4 children): € 32.10
- Total per child: € 203.90
- Total amount for 4 children: € 815.60 per month
Total Amount in 2025
- Total amount for 4 children: € 9,787.20
The Silent Loss: What Really Affects the Family in 2026
These sums remain exactly the same in 2026 and 2027 – without adjustment for inflation. What does this mean?
The forecast for 2026 predicts an inflation of 2.6%. Everything will become more expensive by this amount. It sounds like little – but for a family of four, it adds up quickly.
- Monthly loss of purchasing power per child: approx. € 5.30
- Annual total loss for 4 children: approx. € 254.80
To compensate for inflation, the family allowance would need to be € 10,042.00 in 2026 instead of € 9,787.20 as in 2025. Instead, it remains at € 9,787.20 in 2026. Without an increase, families can afford less.
In 2027, even more money will be missing. By then, two years without inflation adjustment will have eaten into the budget of Austrian families. Even more dramatic: if inflation rises, the loss of purchasing power will be even greater.
Dr Mariella Stubhann MPM MBAFinanz & Recht „Wer also glaubt, eine eingefrorene Zahlung sei besser als eine Kürzung, irrt.
Eine nicht valorisierte Familienleistung bedeutet real einen jährlichen Verlust – still, aber sehr deutlich spürbar.“
Childcare Allowance and Child Tax Credit
Not only is the family allowance frozen – childcare allowance and child tax credit will also remain at current levels in 2026 and 2027. The overall package particularly affects young families with multiple children.
Officially, it is said that no one will receive less. But in truth, the value of money is continuously eroded by rising prices. It is therefore a backdoor cut.
Conclusion: Austerity Package Hits Families – without Them Noticing Immediately
In 2026, families will receive exactly the same amount as in 2025. But their money buys less, covers less, lasts shorter. And this, despite prices continuing to rise. The non-valorization is not just a numbers game, but directly affects families – in the supermarket, with rent, with school supplies.
Those with more children feel it especially quickly.
Mini-FAQ: Family Allowance 2026 – What Parents Need to Know Now
How much is the family allowance for a child over 10 years old?
€ 171.80 basic amount + e.g., € 32.10 for four children through sibling scaling = € 203.90 monthly.
Will the family allowance be cut in 2026 and 2027?
No, it remains nominally the same – but loses value due to inflation.
Will inflation be taken into account in 2026 and 2027?
No – the automatic adjustment to inflation will not take place in 2026 and 2027.
How much does a family with four children lose as a result?
Around €255.00 in 2026 alone due to the non-valorization of family allowance.
Why is there no adjustment?
The measure is part of the austerity package in the 2025/26 double budget for budget consolidation.
Since when has the automatic adjustment existed at all?
Since 2023 – it was desperately needed, now it’s being suspended again.
Does this also apply to other benefits?
Yes, childcare allowance and child tax credit are also affected.
What can families do?
Rethink budgets, check state subsidies, and question political decisions.
All current developments on family benefits, law finance only at Finanz Recht | Austria – clear, understandable, and always up-to-date.
