Social protection statistics - family and children benefits

Data extracted in March 2024.

Planned article update: May 2025.

Highlights

In 2021, €347 billion was spent on family/children benefits in the EU, amounting to 2.4 % of GDP.

In 2021, expenditure on family/children benefits in the EU was equivalent to 8.3 % of all expenditure on social benefits.

EU expenditure on family/children benefits rose by 51.2 % in real terms between 2000 and 2021, despite a decline of 8.0 % in the number of children aged less than 18 years.

Expenditure on family-children benefits, 2021

Social protection benefits are transfers, in cash or in kind, made to relieve households and individuals of the burden of one or more social risks or needs. This article presents statistics on social protection benefits intended to address the risks and needs associated with family and children. The data are collected annually through the European system of integrated social protection statistics (ESSPROS). These benefits are those denominated “Family/children” benefits in the ESSPROS classification (see figure 6). Education benefits are generally excluded from social protection.

Full article

Family/children expenditure in 2021

In 2021, expenditure across the European Union (EU) on family/children benefits was €347 billion, which was equivalent to 2.4 % of GDP. The level of spending varied between EU countries, ranging from highs of 3.6 % of GDP in Germany and 3.4 % in Poland to a low of 0.9 % in Malta (see Figure 1).

Figure 1: Expenditure on family/children benefits, 2021
(% of GDP)
Source: Eurostat (spr_exp_sum)

In 2021, expenditure on family/children benefits in the EU amounted to 8.3 % of total expenditure on social benefits. The relative importance of family/children benefits varied between EU countries. The highest shares were 15.0 % of all expenditure on social benefits in Poland and 14.8 % in Luxembourg; double-digit shares were also recorded in 10 other EU countries. At the other end of the range, less than 5.0 % of total expenditure on social benefits was devoted to family/children benefits in Cyprus (4.7 %), the Netherlands (4.6 %) and Italy (4.1 %) (see Figure 2).

Figure 2: Expenditure on family/children benefits, 2021
(% of expenditure on social benefits)
Source: Eurostat (spr_exp_sum)

The proportion of expenditure on social benefits allocated to family/children benefits does not necessarily provide an ideal basis for comparison between countries because it is impacted by the amounts spent in other areas of social protection, which are in turn affected by a vast array of socioeconomic factors. For example, expenditure on unemployment-related benefits is linked (among other factors) to the state of the labour market, while expenditure on old-age pensions is linked (among other factors) to the demographic structure of the population. In the case of expenditure on family/children benefits, there is likely to be some link with fertility rates and the share of children within the population.

A more meaningful comparison of expenditure levels for family/children benefits might be to consider expenditure per child, in other words, the level of expenditure for each resident aged less than 18 years. This comparison may be made in euro (€) terms or alternatively in purchasing power standard (PPS) terms; the latter eliminates price level differences between countries (see Figure 3). Note that the demographic data used in this section refer to the number of inhabitants aged less than 18 years. In making this comparison, users need to be aware that the figures for some countries may be overstated because the expenditure also includes amounts paid out with respect to dependent children aged 18 years or over and/or to relatives other than children.

Figure 3: Expenditure on family/children benefits per child, 2021
(€ and PPS per child)
Source: Eurostat (spr_exp_sum) and (demo_pjan)

EU expenditure on family/children benefits in 2021 amounted to an average of 4 291 PPS per child but varied considerably across the EU countries. The average level of expenditure on family/children benefits was particularly high in Luxembourg, where the ratio was 12 305 PPS per child, with relatively high levels of spending directed to non-means-tested family-related benefits. It should be noted that this figure is likely to overestimate the true level of expenditure per resident child substantially, as a large proportion — over a quarter — of these benefits are provided to families of non-resident workers. Elsewhere in the EU, the level of expenditure on family/children benefits ranged from 8 705 PPS per child in Germany down to 1 570 PPS per child in Cyprus.

Further methodological issues may need to be taken into account when comparing data on family/children benefits between countries, such as supplements and fiscal benefits.

Supplements: benefits recorded in other functions of social protection may include supplements for dependent children. In principle, such supplements should be split from the main benefit and reported separately. However, this is often difficult in practice, so the supplements are instead reported along with the main benefit and therefore not in the family/children function. For example, a range of periodic cash benefits related to disability, old-age, survivors and unemployment may include supplements for dependent children that are not reported in the expenditure of the family/children function. As a result, countries that implement a universally available family/child allowance and do not use supplements may appear to have a higher level of expenditure than countries which implement a more restricted family/child allowance and rely on supplements to top-up the income levels of families confronted by other risks/needs.
Benefits provided through the fiscal system: with the exception of payable tax credits, family/children benefits provided through the fiscal system are excluded. For example, non-payable tax credits and higher tax-free allowances provided to people with dependants may reduce taxes paid by recipients but are excluded in the expenditure recorded by the ESSPROS core system.

Family/children expenditure between 2000 and 2021

EU (excluding Bulgaria and Croatia) expenditure on family/children benefits (in constant price terms) rose by 51.2 % between 2000 and 2021 (see Figure 4), despite a decline of 8.0 % in the overall number of children aged less than 18 years during the same period. The increase in the level of expenditure for family/children benefits was slightly lower than the increase recorded for all social benefits (up overall by 56.9 %).

Figure 4: Developments for expenditure on social benefits and family/children benefits, GDP and population aged less than 18 years, EU, 2000–2021
(index, 2000 = 100)
Source: Eurostat (spr_exp_sum), (nama_10_gdp) and (demo_pjan)

The rising level of EU expenditure on family/children benefits was underpinned by increases for all of the EU countries for which data are available (incomplete data for Bulgaria and Croatia). During the period from 2000 to 2021, the level of expenditure on family/children benefits more than doubled (in constant price terms) in Slovakia, Spain, Cyprus, Luxembourg and Latvia, more than tripled in Estonia, Lithuania and Romania, while in Poland it was 7.7 times as high in 2021 as it had been in 2000.

EU (excluding Bulgaria and Croatia) expenditure (in constant price terms) on family/children benefits rose every year between 2000 and 2010, increasing overall by 22.9 % during this period. There was a modest reduction in the level of expenditure in both 2011 and 2012 (perhaps influenced by the aftermath of the global financial and economic crisis). However, expenditure resumed an upward path as in 2013 and this pattern continued through to 2021. Expenditure on family/children benefits increased by 0.1 % in 2021, the smallest rate of change since the decreases in 2011 and 2012.

Composition of family/children expenditure

Distribution by type of benefit

Three fifths (59.4 %) of expenditure on family/children benefits in the EU in 2021 were disbursed in the form of periodic cash benefits, just under two fifths (38.5 %) as benefits in kind and a relatively small share (2.1 %) as lump-sum cash benefits (see Figure 5).

Figure 5: Expenditure on family/children benefits by type, 2021
(% of total expenditure on family/children benefits)
Source: Eurostat (spr_exp_ffa)

In 2021, periodic cash benefits constituted the majority of expenditure on family/children benefits in all but four of the EU countries: in Finland, Denmark, Spain and Sweden, a higher level of expenditure was recorded for benefits in kind than for periodic cash payments. Lump-sum benefits accounted for less than 10.0 % of expenditure on family/children benefits in all but three EU countries – Latvia (28.0 %), Cyprus (21.3 %) and Greece (18.1 %). In Cyprus, around 90 % of these lump-sum payments relate to financial assistance for families with limited resources whose children are in education ^[1].

Distribution by detailed benefit type

Considering expenditure across the detailed benefit classification provides further insight into the composition of expenditure on family/children benefits (see Figure 6).

Figure 6: Expenditure on family/children benefits by detailed benefit type, EU, 2021
(% of total expenditure on family/children benefits)
Source: Eurostat (spr_exp_ffa)

ESSPROS distinguishes four types of periodic cash benefits: 1) income maintenance in the event of childbirth; 2) parental leave; 3) family/child allowances; 4) other periodic cash benefits. Family/child allowances were by far the most common type, accounting for 42.0 % of EU expenditure on family/children benefits in 2021, thus explaining why the largest form of disbursement is periodic cash benefits. Indeed, family/child allowances were the largest type of benefit in 17 of the EU countries, with their share of total expenditure peaking in Belgium (66.5 % of all expenditure on family/children benefits).

Similarly, ESSPROS distinguishes four types of benefits in kind: 1) child day care; 2) accommodation; 3) home help; 4) other benefits in kind. Child day care, which accounted for 23.4 % of EU expenditure on family/children benefits, was the largest type of benefit in kind and the second largest family/children benefit overall (after family/child allowances). Child day care accounted for the largest portion of total expenditure on family/children benefits in six of the EU countries (Finland, Denmark, Spain, Sweden, Slovenia and Croatia). The category of other benefits in kind, including for example access to leisure centres or price reductions for children, was also relatively noteworthy, accounting for 10.1 % of total expenditure on family/children benefits in the EU. The share for this category peaked among the countries at 29.9 % in Bulgaria.

Lastly, lump-sum cash benefits can be broken down into three detailed benefit types: 1) birth grants; 2) parental leave benefits; 3) other lump-sum cash benefits. None of these are particularly large in terms of their contribution to overall EU expenditure on family/children benefits as they each accounted for shares that were less than 2.0 % in 2021. Nevertheless, other lump-sum benefits accounted for 26.9 % of expenditure on family/children benefits in Latvia in 2021.

Distribution by application of means-testing

In the EU, more than one quarter (28.3 %) of all expenditure on family/children benefits was associated with means-tested benefits in 2021 (see Figure 7). There were no means-tested benefits in Estonia, Finland or Sweden. By contrast, means-tested benefits accounted for more than three fifths of all expenditure on family/children benefits in Cyprus (64.5 %), Portugal (64.4 %) and Greece (63.2 %).

Figure 7: Expenditure on means-tested family/children benefits, 2021
(% of total expenditure on family/children benefits)
Source: Eurostat (spr_exp_ffa)

Change in the composition of family/children expenditure between 2000 and 2021

Distribution by type of benefit

In the EU (excluding Bulgaria and Croatia), expenditure on family/children benefits (in constant price terms) increased for two of the three forms of disbursement during the period from 2000 to 2021 (see Figure 8). Expenditure rose at a relatively rapid pace for benefits in kind, more than doubling (up 115.7 %) overall during the period under consideration, while there was also an increase in the level of expenditure for periodic cash benefits (up 28.8 % overall). By contrast, lump-sum cash benefits had some relatively volatile developments and fell 4.0 % overall across the EU.

Figure 8: Developments for expenditure on family/children benefits at constant prices by type of disbursement, EU, 2000–2021
(index, 2000 = 100)
Source: Eurostat (spr_exp_ffa) and (nama_10_gdp)

Distribution by detailed benefit type

Based on information that is available for 25 of the EU countries (incomplete data for Bulgaria and Croatia), the contribution of benefits in kind to overall expenditure on family/children benefits rose over the period from 2000 to 2021 from 26.9 % to 38.5 % (in current price terms). By contrast, the relative contribution of periodic cash benefits and lump-sum cash benefits declined (from 69.7 % to 59.4 % and from 3.3 % to 2.1 % respectively). As such, the increased level of expenditure for benefits in kind accounted for 49.3 % of the total increase (in current price terms) in expenditure on family/children benefits between 2000 and 2021.

In real terms, EU (excluding Bulgaria and Croatia) expenditure increased between 2000 and 2021 for all detailed types of family/children benefits except for lump-sum payments for parental leave (down 70.5 %), home help (down 60.8 %) ^[2] and other lump-sum benefits (down 12.7 %). In the case of the first of these, it is important to note that periodic parental leave benefits increased 34.9 % over the same period, in absolute terms more than compensating for the overall decline in the much smaller expenditure on lump-sum benefits for parental leave (see Table 1).

Table 1: Expenditure on family/children benefits by type, EU, 2000–2021
Source: Eurostat (spr_exp_ffa) and (nama_10_gdp)

The increase in expenditure on family/children benefits between 2000 and 2021 was primarily driven by higher levels of spending for child day care, family/child allowances, other benefits in kind and income maintenance in the event of childbirth; expenditure on these types of benefit across the EU (excluding Bulgaria and Croatia) rose in current price terms by an amount between €15.6 billion (for income maintenance in the event of childbirth) and €57.1 billion (for child day care) during the period under consideration.

The rise in expenditure on child day care is perhaps unsurprising given that EU employment policy has strongly encouraged the importance of affordable childcare in allowing parents to work (if they want to) while raising a family. Indeed, total expenditure on child day care grew in all of the EU countries for which data are available except in:

Czechia, where it fell from €390 000 to €0,
Estonia and Ireland, where there was no expenditure on child day care benefits in either 2000 or 2021.

Distribution by application of means-testing

In 2021, means-tested benefits across the EU contributed more than one quarter of total expenditure on family/children benefits (28.3 %), while the majority of benefits were non-means-tested (71.7 %). Between 2000 and 2021, EU (excluding Bulgaria and Croatia) expenditure on means-tested family/children benefits rose by 54.4 % (in real terms), while expenditure on non-means-tested benefits increased by 49.9 % (see Figure 9). These similar overall figures hide contrasting developments.

Means-tested benefits tended to increase at a slower pace (than non-means-tested benefits) during the period up to and including 2008, with exceptions in 2004 and 2006.
Thereafter, there was a faster increase in the level of expenditure for means-tested benefits in the EU through to 2017 (despite a fall in 2010).
During 2018, 2019 and 2020, means-tested benefits tended to increase at a slower pace (than non-means-tested benefits).
In 2021, means-tested benefits increased 3.3 % while non-means-tested benefits decreased 1.2 %.
Between 2000 and 2021, expenditure on non-means-tested benefits increased every year except for three successive years from 2011 to 2013 and 2021. Means-tested benefits increased every year except for 2005, 2007 and 2010.

The different developments for means-tested and non-means-tested benefits may reflect the introduction of a range of policies related to the conditionality of family/children benefits, for example in order to reduce government spending or in response to crises such as the global financial and economic crisis or the COVID-19 crisis.

Figure 9: Developments for expenditure on family/children benefits at constant prices by application of means-testing, EU, 2000–2021
(index, 2000 = 100)
Source: Eurostat (spr_exp_ffa) and (nama_10_gdp)

Source data for tables and graphs

Social protection statistics – family/children benefits: tables and figures

Data sources and availability

All of the data presented in this article are from the European system of integrated social protection statistics (ESSPROS), specifically the core system. These data are collected from national statistical offices and/or ministries of social affairs in each country and are generally compiled from administrative sources.

Regulation (EC) No 458/2007 of the European Parliament and of the Council provides the legal basis for the collection of this data and a series of Commission regulations provide further specifications for the implementation of this regulation.

Context

The organisation and financing of social protection systems is the responsibility of each EU Member State. Nevertheless, the European Commission provides support to help reach a range of targets through flagship initiatives such as the European pillar of social rights. Furthermore, the European Commission provides guidance to EU countries to modernise their welfare systems through the social investment package.

The European pillar of social rights is built upon 20 principles, half of which are classified under the heading of Social protection and inclusion, including principle 11 which covers childcare and support to children.

Notes

↑ Generally, education-related expenditure is outside the scope of ESSPROS. However, benefits provided exclusively to poverty-stricken families after a means-test may be included in the family/children function on the basis that the objective is to redistribute income in favour of people with insufficient resources rather than to provide free access to education.
↑ Home help reported in the family/children function is limited to support for children. Home help targeting older people and people (including children) with disabilities are reported under assistance in carrying out daily tasks in the old-age and disability functions.