Sweden Finland Austria

Child benefits
The basic Swedish allowance for children has been 9,000 SEK annually for each child
from 1991 to 1995. The supplement for more children was 0.5 basic allowance for child
no. 3, 1.0 basic allowance for child no. 4 and 1.5 basic allowance for child no. 5 and higher
numbers until 1994. From July 1994 the supplement for child no. 5 (and higher numbers)
was reduced to 1.0 basic allowance, the other supplements were unchanged. In 1995 the
supplements were changed again, for child no. 3 it became 2,400 SEK, for no. 4 it became
7,200 SEK and for no. 5 (and higher numbers) 9,000 SEK. From 1996 the basic allowance
was lowered to 7,680 SEK and no ’new’ supplements will be paid. Benefits ’attached’ to
the allowance for children (support for children and allowances for education) were also
reduced. The rates in 1997 were unchanged compared to 1996. In 1998 the rates will be
increased to the 1995 level and the access to the supplements will be ‘reopened’. Table 3.8
contains the effect on the disposable incomes for a couple (1.5 APW income level) of
receiving allowances for children from 1991-1997.
Table 3.8.
Impact on disposable income from allowance for children. 1.5 APW income level, couple.
1991
1992
1993
1994
1995
1996
1997
1)
1 child, increase in
disp. inc. %
5.0
4.8
4.8
4.7
4.6
3.7
3.7
2 children, increase in
disp. inc. %
10.1
9.6
9.6
9.3
9.2
7.4
7.3
3 children, increase in
disp. inc. %
17.7
16.8
16.8
16.3
15.0
11.1
11.0
1)
Preliminary calculation (’Elements’).

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92
The effect of the nominally unchanged allowances is quite evident. From 1992 to 1993
there is, however, no visible change. This is caused by a little lower nominal disposable
income also for the couple in 1993 compared to 1992, but not so much lower that it makes
an impact on the percentages. The reduction in the supplement (3 children) in 1995 is
clear, and the reductions in 1996 are very substantial. It is assumed that child no. 3 is born
in 1996, and that there is no supplement. The decrease in positive impact continued in
1997, where the benefits were unchanged from 1996. If the relative increase in 1997
should be the same as it was in 1991 the allowance for 3 children (together) should be
more than 14,000 SEK higher than it was in 1997.