Experts suggest changing the family support model: universal childcare subsidy recommended

Head of the Social Affairs and Labor Commission of the Seimas Mindaugas Lingė Delphi He said that a discussion on the changes is possible, it will take place during the discussion of the Government on the plan of measures for the implementation of the program.

These proposals were presented to a specially trained group of researchers led by R. Lazutka, in one of the projects supported by the Lithuanian Scientific Council (LMT).

They will also be presented to government officials at a special conference on Tuesday afternoon.

The experts did not examine the so-called child money, which for most families will amount to 70 euros per child next year, but the principles and desirability of other benefits.

You look at the problem incorrectly

The economist R. Lazutka explained that the changes are necessary mainly because not all families receive such benefits.

“The problem is twofold. First, we now pay the Sodra benefit until the child is one year old, which means that we pay those who meet the social security requirement, at least 12 months in the last 24 months of social security.

As a result, some children, 5 to 25 percent, depending on the year, are born into families where the mother or father is not entitled to the Sodra benefit because the required time was not insured. Delphi R. Lazutka said.

According to Sodra, the maternity benefit is 77.58 percent. the amount of the beneficiary’s compensatory earnings.

This amount is calculated on the basis of the insured income received by the person during the 12 consecutive calendar months prior to the month prior to the month in which the right to maternity benefit occurred.

He explained that even during the pandemic, the spread of unemployment will increase the number of parents who will not have the required duration of insurance for the child care benefit and will not receive the benefit.

“Among families with children under the age of 3, poverty is very common if the family does not receive Sodra benefits. And that benefit is quite generous – about 70 percent in the first year of the previous salary, in the second year – about 40 percent, ”said the professor.

The expert explained that the issue had not been raised for a long time because it had been viewed inappropriately.

“We must treat that benefit not as a replacement for lost wages, but as support for a family that has additional costs associated with caring for children. If those children will be cared for by a babysitter, mom or dad, or in kindergarten. And the state will have to help cover those costs for all families with young children, “said the economist.

R. Lazutka explained that it is not fair to pay the benefit only to those who meet the social security requirements.

“The argument is that Sodra supports them because they paid for it themselves. But they may have paid very little, but they still receive the benefit. And if we take a woman who has not earned that time of service, she does not receive that benefit. of Sodra, but then, when he already needs to make a living from something, he works and maybe will work for 40 years for Sodra paying contributions ”, – the proposals of the group of experts. Delphi R. Lazutka explained.

It would help lower income families

The document prepared by the experts points out that the provision of social security child care has an internal contradiction – the benefit of the first year is incompatible with the incentives to participate in the labor market, and the second – with the costs of child care.

“In the first year, the benefit changes the salary and, therefore, substantially eliminates the incentive to work,” reads the document prepared by R. Lazutka and the group of experts.

It is explained that people with less education generally earn less, are more likely to be unemployed and economically inactive, and do not accumulate the required insurance history to qualify for the Sodra benefit.

Therefore, expanding coverage alone would have a greater positive effect on them.

“In addition, the single benefit for all is progressive in terms of family income, as it is relatively more significant in lower-income households,” says the document.

Offers universal benefit for up to 3 years

R. Lazutka also notices another bug in the current system.

“Another argument is why the current system is not entirely logical. Imagine, one earns two average wages and the other one minimum. And the benefit is paid as a percentage of salary, but childcare costs the same ”, said R. Lazutka to another problem.

“We must change the treatment of that benefit, there is support for the family, which has additional costs related to childcare. And then that benefit should not come from Sodra, but from the state budget,” said the economist.

Therefore, the document recommends paying the same amount to each parent, regardless of their employment, until the child is three years old.

“Now there is also such a discrepancy: according to the Labor Code, the leave is granted for up to three years to the parent who wants it, but the benefit is paid only for two years. I have proposed that the benefit be paid for the three years, but differentiated “. Delphi The proposals were named by R. Lazutka.

The amount of the subsidy for child care is designed to fit 2021 In the Sodra budget project – 221 million. euros. From childbirth to two years, the childcare allowance would be € 304 and the third year € 117 per month.

The benefit amounts have been chosen so that, together with the universal amount of EUR 70, the benefit for the first two years is double that of the third year, and families would receive state aid of EUR 374 and EUR 187 .

It does not accept individual proposals for evaluation.

President of the Social Affairs and Labor Commission of the Seimas, conservative M. Lingė Delphi He said he did not want to separately evaluate the Lazutka expert group’s proposal for universal child care benefits. According to the politician, the government will be able to discuss the entire package of proposed measures and make decisions when preparing the implementation plan for the government program.

M. Lingė stated that a group of experts led by the economist R. Lazutka presented proposals for the entire field of social policy.

This group of scientists has developed a series of proposals related to various social needs. There is also talk of extending unemployment insurance to 3 months and up to a year and a half during a pandemic. What they estimate would require significant additional money are also poverty reduction proposals that will be evaluated in various sizes.

I wouldn’t want to take one offer at a time and evaluate them, as it is an expensive package. That needs to be discussed. I think the newly formed government will also appreciate it. ” Delphi said Seimas member M. Lingė.

The deputy spoke that all the proposals must already be evaluated by the Government.

“You must look at the time of costs and benefits to make a rational assessment,” said the interlocutor.

Ms. Lingė emphasized that these proposals had not fallen “from the sky”, but rather the deadline for submitting research proposals.

“I think we will evaluate that work, but just for the sake of versatility and size, a more detailed and in-depth analysis is needed.” Delphi said M. Lingė, director of the Social Affairs and Labor Commission of the Seimas.

Do you need to change the system?

M. Lingė, head of the Seimas Labor and Social Affairs Commission, stated that the revision of the family support system is useful if it is rational and gives rise to fundamental problems. The interlocutor said that there should be an active discussion on key decisions.

“The fact that a look at every system that works is useful and necessary always makes sense. Especially if things are identified that are not working, but all this must be evaluated and based not only on good will, but also on the capacities of the State. (…) Surely there will be an open debate, it has been provoked for a long time.

The peasants tried for some time to scare people that everything would be scraped off and removed, but in 2021 it did not happen. Now we are trying to support the discourse that the threat is coming for next year, ”said the parliamentarian.

M. Lingė recalled that in the program of the National Union – Lithuanian Christian Democrats (TS-LKD) it was noted that all support measures should be specific.

“In our program, we talk about the purpose and precision of any support. It is necessary to focus more on those who need it most in terms of all measures in the social field. Because the example of giving to everyone, needed or not, does not it is the most rational way ”, he explained.

The Seimas has already adopted the budget for next year, so the form of the closest possible changes will be clear only in the plan of measures for the implementation of the Government’s program.

“Decisions have already been made for 2021, they have not been revoked, the government must prepare a plan of measures within three months. Apparently, many questions should be answered when we really see how the government prepares to implement its program through concrete measures. ” Delphi said M. Lingė, the head of the Seimas committee.