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In the government’s proposal for the 2021 state budget, there are several points that can affect the family economy.
Please note that the proposed state budget is just that suggestions. The Storting approves the final budget, which will arrive in May 2021. Therefore, there may be changes in what the government has presented as a proposal.
According to consumer economist Cecilie Tvetenstrand of Danske Bank, the proposals could provide better advice to parents with young children:
– Families with younger and low-income children may receive better advice. Child benefit for children under 6 years of age will be increased by another NOK 300 per month from 1 September until next year. It provides a child allowance for the youngest of SEK 1654. Low-income individuals with older children will also receive additional support in this state budget. For them, a large sum has been allocated to offer cheaper OFS up to and including 4th grade, in some municipalities also completely free of charge. It can mean a lot of money each month in reduced expenses for a family already living on a tight budget, Tvetenstrand tells Dinside.
– Additionally, the amount to be used for waiver cards for children from low-income families has tripled in 2021. It offers opportunities for more children to participate in activities regardless of parental finances. You can get an aid of up to 2000 crowns per child to participate, for example, in scout, football, choir, etc., continues.
These are some of the proposals in the 2021 state budget:
# 1: Child benefit is increased, for some
The government proposes to increase the allowance for children up to the age of six by NOK 300 per month from September 1, 2021.
This means an annual increase of NOK 3,600.
If a new rate is adopted, this means that the rates will be as follows:
- Children under six years: 1654 crowns / month – 19,848 crowns / year
- Children over six years: NOK 1054 / month – NOK 12,648 / year
The increase will have more to say for those with low incomes than for those with high incomes. In this way, the measure helps provide for children who grow up in low-income families.
The state budget two years ago saw the first change in child benefit in 23 years. The child benefit was then increased from NOK 970 per child, which is the rate introduced in 1996, to NOK 1,054.
The change came into effect on March 1, 2019 and corresponded to an increase of NOK 84 per month, that is, 8.7%.
Last year, there was a further increase for those with children under the age of six: even then, they received a supplement of NOK 300, as proposed now.
As of September 1, 2020, the ordinary child benefit for children under the age of 6 was increased from NOK 1,054 to NOK 1,354.
Families with children over the age of six did not receive this supplement last year, nor has a change for this group been proposed in this year’s proposal for the state budget.
The current child benefit rates are NOK 1,354 for children under the age of 6 and NOK 1,054 for children over 6 years of age.
If the proposal is approved, it will mean that families with children under the age of six will receive a monthly child benefit payment of NOK 1,654.
The current rate of NOK 1,054, which is the rate for those over six years of age, is still NOK 550 less than if this rate followed the consumer price index, based on the 1996 rate.
# 2: Maximum limit extended on SFO payment
In the state budget for 2021, the government proposes to allocate NOK 25 million to extend the existing national scheme with graduated parental payments by income to apply to 3-4 as well. steps since fall 2021.
The expansion helps low-income families make use of the income-graduated parental payment scheme at all stages of OFS.
The government proposes to allocate NOK 15.2 million to the free OFS for low-income families in selected municipalities.
Therefore, the parental payment will be expanded according to income level.
The plan stipulates that the payment for after-school care can amount to a maximum of 6% of the parents’ income.
This will now be expanded to include third and fourth grades as well, not just the first two years of school as it is today.
– The OFS and Aks have become an important integration scenario. For many children, this is where they meet their friends after school and participate in leisure activities. Not being able to go to OFS because their parents cannot pay can be a great loss for the particular child, Education Minister Guri Melby (V) previously told Dagbladet.
Beginning in the 2020-21 school year, a statewide parental pay scheme was introduced for low-income families with children in 1st and 2nd grade. This was adopted in the wake of a state budget proposal for 2020.
Also, SFO for students in 5.-7. Free Special Needs Steps beginning in the 2020-21 school year.
As of the 2021-22 school year, according to the Directorate of Education (Udir), there will be a national framework plan for the after-school program. The goal of the framework plan is that children receive a good offer, not that the after-school program is as similar as possible everywhere.
OFS
6 out of 10 children from 1 to 4 years old. the steps go to the OFS, and the older the children, the less the participation.
According to Udir’s figures, the average monthly payment for parents is 2500 kroner for a full-time place and 1500 for a part-time place.
According to a national evaluation of the scheme that NTNU Social Research carried out on behalf of the government in 2018, there are large differences in the quality of the OFS offering.
# 3: cover the expenses of leisure activities
The government proposes NOK 120 million more for leisure cards for children.
The scheme began with a pilot project in Arendal and Vadsø and expanded by 60 million to 12 municipalities in the national budget last year.
The leisure card should ensure that all children have the opportunity to participate in an activity, regardless of family finances.
The leisure card will cover the expenses of leisure activities organized on a regular basis for children from 6 to 18 years old. The objective of this plan is that more children and young people participate in leisure activities.
Studies have shown that many children and young people do not participate in leisure activities because they are too expensive.
The scheme applies to children and young people aged 6 to 18 years, and it should be possible to receive aid for leisure activities of up to NOK 1,000 in the first half of the year.
The leisure cards for children and young people marked an important advance for KrF in the government negotiations in winter 2019.
Party leader Kjell Ingolf Ropstad has confirmed to Vårt Land that the promise of a leisure card for all children cannot be fulfilled before the parliamentary elections next year.
– I am hoping to present the card from 2022, he tells the newspaper.
# 4: one-time profit is increased
The government proposes to increase the one-time benefit from NOK 84,720 to NOK 90,300 as of January 1, 2021.
The single benefit is a minimum guarantee for mothers without accumulated right to parental benefits. The increase strengthens the finances of these families.
Facts about the state budget
- The Solberg government will present its proposed state budget and national budget for 2021 on Wednesday, October 7. The state budget is always presented in early October, the year before the budget year.
- The central government budget deals with the estimated revenues and expenditures of the central government during a calendar year. It also sets the rates for the collection of taxes and fees.
- The national budget is a quantity of estimates for all economic development and therefore governs the framework in the state budget itself.
- The proposed state budget will be considered further by the Storting, which will make any changes. The Storting adopts the final budget, which becomes binding on the government and state administration. The revised national budget arrives in May 2021.
