Because in Vedum’s budget proposal, child benefit remains unchanged: NOK 1,676 for children under 6 years of age. NOK 1,054 for children up to 18 years of age. It’s bad news for Maria Roli and Christofer Silius, who live at Siggerud in Nordre Follo with their children Oliver (8) and Mollie (4). – It is simply very disappointing. Many families are now in a challenging situation and are hit hardest by today’s economic development, says Roli to news. news visited the family when the state budget was presented. Roli fears that the austerity measure on child benefit will mean that many families will have to lower the priority of social activities and sports. – This in turn creates differences and depresses those who already have less, she says, and adds: – Child benefit means a lot and far too many. It helps us with expenses that are essential in everyday life, materials that the children need and leisure activities. READING TIME: Christofer Silius and his daughter Mollie at home in the living room. Photo: Heather Ørbeck Eliassen / news – Hide away In budget parlance, the move the government is taking is called “nominal continuation”. It simply means that the same amount of kroner will be paid out next year as this year, even if the prices of other goods and services increase. – It is a dramatic cut for many families with children, says KrF’s fiscal policy spokesperson Kjell Ingolf Ropstad to news. – It is a real cut that is hidden away. I react strongly to the fact that the red-green government is simply making an anti-social cut by not increasing the rates in the same way as wages. On Friday 4 November, SV presents its alternative budget. The party will then negotiate with the governing parties about the 2023 budget. Ropstad is now trusting that SV will do something about the child benefit. ADVANCES: KrF and Kjell Ingolf Ropstad have on several occasions ensured increased child benefit. Photo: Kristian Skårdalsmo / news Many examples But child benefit is far from the only benefit that will not be price-adjusted and thus kept unchanged from this year to next year in the government’s proposal: Child benefit: Estimated savings: 527 million, according to the Ministry of Children and Families. Integration grant: A grant the municipalities receive when settling refugees, asylum seekers or family reunification. 15.3 billion set aside in next year’s budget. Estimated savings: 390 million, according to the Ministry of Labor and Inclusion. Apprenticeship grant: Compensation to apprenticeship companies for taking on a training responsibility. Provides a saving of 105 million, according to the Ministry of Education. One-off benefit: Support for mothers who have not been in work. 750 million in the budget. Estimated savings: 21 million. Cash support: Benefit for parents who stay at home with their children instead of using daycare. Cut due to other measures at daycare, and this year’s rates will continue. In total, it means over one billion kroner in saved expenses for the state that these benefits and subsidies are not price-adjusted. How much those who benefit from these benefits actually lose depends, above all, on how high price growth will be in 2023. Higher price growth results in greater real losses. Here is the explanation for the hidden cuts What many Norwegians will experience as a cut in benefits and subsidies next year is hidden behind the wording “nominal continuation”. It simply means that the amount of kroner paid out this year will be the same next year. In a letter to the Storting, the Ministry of Finance writes that the state will save NOK 527 million by not adjusting child benefit next year in line with expected price growth of 2.8 per cent. And if the social security is to be adjusted in line with an expected wage increase of 4.2 per cent, it will cost 834 million. This year, NOK 1,676 per month in child benefit is paid for children aged 0-6 and NOK 1,054 for children aged 6-18. If the government’s budget proposal is adopted, the amount will remain unchanged in 2023. If, on the other hand, child benefit is increased in line with price increases, it would mean well over NOK 500 more next year for the youngest children and well over NOK 350 more for the oldest. If prices increase by more than 2.8 per cent next year, which is entirely possible, the real loss for families with children will be greater. This year, prices have increased by around 7 per cent. This means that child benefit has become far less valuable during 2022, as other expenses have increased. The government has set aside NOK 19.3 billion for child benefit in 2023. It would cost NOK 6.7 billion to adjust child benefit upwards in line with increased prices since 1996. (Source: regjeringen.no) Effective against poverty Senior advisor Jon Epland at Statistics Norway ( Statistics Norway) has done a lot of research on child benefit. Senior adviser Jon Epland at Statistics Norway. Photo: Per Lristian Lie Løwe – We know that child benefit actually means quite a lot to low-income families. There are quite a few families that are around these low-income limits we operate with, he says to news. – It takes very little to lift them above the low-income limit and, in the opposite case, that they fall below if there is a reduction in that type of benefit. Statistics Norway carried out studies a few years ago which showed that around 20,000 children could have been lifted out of low income, if child benefit had increased in line with prices since 1996. – That is why KrF prioritized it so highly and increased it by over NOK 8,000 . This cut will perhaps result in a cut of over NOK 1,000 a year for a family with a child under the age of six, says Ropstad. He has no doubt that increased child benefit is the most important thing the government can do to lift more children out of poverty: – My fear is that this will result in even more children growing up in families that are below the poverty line. Statistics Norway’s researchers have concluded that the low-income shares fell for all age groups after 2018, when child benefit increased. And there was the biggest impact for the youngest children in the years 2019-2020, when child benefit increased significantly for this group. Around 115,000 children live in families with a low income over a three-year period, according to Statistics Norway. Defends prioritization Finance Minister Trygve Slagsvold Vedum (Sp) points out that single parents will receive increased child benefit next year. This is done through a change from tax deduction to child benefit. – We have taken many steps to strengthen the social profile. And then there are some schemes that have been continued nominally, acknowledges the Center Party leader. – It’s probably a bit of “budget trickery” not to adjust the price of these benefits…? – It is completely normal. This has often happened in the budgets, and then there are adjustments in between, through reforms. – But many families with children will be affected by this, which is a real cut? – Many families with children also benefit from it. “NOMINAL CONTINUATION”: Finance Minister Trygve Slagsvold Vedum (Sp) will give the same amount of kroner in child benefit next year as this year. Photo: Kristian Skårdalsmo – But you take with one hand and give with the other? – There is a slightly higher tax burden for those with high incomes. Then we also provide many welfare improvements and tax cuts for those who earn less than 750,000. – So they get a little less child benefit – and a little less tax? – The main priority when it comes to families with children has been kindergarten, cheaper price, and free for those who have three children or live in Finnmark and Nord-Troms and cheaper after-school. EXPENSIVE: Maria Roli, here with her daughter Mollie, is not impressed by the measures Vedum has taken for families with children in its budget. Photo: Heather Ørbeck Elisassen / news But Maria Roli is not impressed by Vedum’s move. – This is a time to help families with children in a challenging time by increasing child benefit and/or having a fixed, lower and equal price for AKS/SFO and kindergartens. Something needs to be done, NOK 50 less for kindergartens does not make up for today’s increased costs, she says. Roli fears increased child poverty, greater social differences or psychological challenges if families with children are not given higher priority. – It is sad if there is an increase in child poverty, and the government does not deal with this in a good way, she states.
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Here is Vedum’s hidden billion-dollar cut – news Norway – Overview of news from various parts of the country
